The order for 30 Rafale fighter jets placed by Egypt marks a new export success for the flagship of French defense aeronautics which, after long years of scarcity, has seen more contracts.
A purchase of almost 4 billion euros, which has economic interests, but also diplomatic.
DECRYPTION
With the Covid-19 crisis, many sectors are experiencing great economic difficulties.
But if we have talked a lot about the relative inability of French industrialists to impose themselves abroad, one thing is certain: in the military field, France is still doing well. The Dassault group has indeed just sold 30 additional gusts to Egypt.
This is the second time that the Egyptian army has ordered the Rafale and will have 54 in total.
A sale that will take place in the form of a loan guaranteed by the French state, making the country the second in the world to operate this fighter jet, after France.
Decryption.
What are the financial terms of this contract?
The amount of the transaction for the purchase of these 30 Rafale amounts to 3.95 billion euros, including 200 million for missiles, according to the French investigative media Disclose, which revealed the information on Monday.
Regarding payment precisely, the buyer country will apply for a loan from a group of private banks.
For this specific contract, four are mentioned: Crédit Agricole, Société Générale, BNP Paribas and CIC.
After which the State will have to guarantee the loan.
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A very common practice, especially in the armaments industry, but which obviously depends on the country.
Because if the country defaults, it is the taxpayer who pays the bill.
But within the Ministry of the Armed Forces, contacted by Europe 1, it is indicated that Egypt has always paid "ruby on the nail" and that there is therefore no specific concern.
As for delivery times, it is expected that the first aircraft will be ready three years after the entry into force of this contract.
What is the economic impact for France?
Faced with criticism from NGOs against the Egyptian regime of General Sisi, which they accuse of flouting human rights and using armaments against civilians, the ministry pleads that exports of military equipment are "vital for our defense industry and equipping our armed forces (and) also contributes to the strategic autonomy and influence of our country ".
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From an economic point of view, this agreement with Egypt will have a significant impact and includes a total of three contracts: one for Dassault, a second for MBDA, which manufactures missiles, and a third for Safran Electronics and Defense.
As a result, it should make it possible to generate the creation of 7,000 jobs in France for three years.
Starting with the Dassault group, which will increase its production lines, but also in the 400 French subcontracting SMEs.
What are the diplomatic interests at stake?
After the announcement of the repurchase of 30 Rafale fighter jets by Cairo, the French Ministry of the Armed Forces welcomed an order which further strengthens the strategic and military partnership between France and Egypt.
"This contract illustrates the strategic nature of the partnership that France maintains with Egypt, while our two countries are resolutely committed to the fight against terrorism and work for stability in their regional environment", added in a press release. ministry headed by Florence Parly.
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Indeed, Cairo and Paris readily show their convergence in the fight against terrorism and on other regional security issues, such as rivalries with Turkey in the Eastern Mediterranean or the Israeli-Palestinian conflict.