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UNBEARABLE DEFICITS

Declining budgets challenge France as it seeks fiscal control, defense autonomy

The top priority of France’s newly elected president, Francois Hollande, is to slash government debt. Although this is no surprise, such a primary goal requires sacrifices as well as new priorities in an environment such as the current very challenging one: The economy is weak, growth is minimal, and the aerospace and defense industry’s production costs are too high to efficiently sustain competition.

Initial steps to kick off a difficult recovery effort are being devised and defense budgets are not expected to be significantly reduced. France benefits from a

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