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Analysis: European Defense Contracts

By LEANDER SCHAERLAECKENS, UPI Correspondent
Published: April 21, 2008 at 12:46 PM
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BRUSSELS, April 21 (UPI) -- France eyes arms export increase

In the latest move to revive France's struggling defense industry, the Delegation Generale pour l'Armement, France's procurement office, has been made a government agency, Defense News reports.

As a result, DGA will stand closer to the Defense Ministry, French Defense Minister Herve Morin told La Tribune.

Morin also confirmed that the military will fall under President Nicolas Sarkozy's plan to replace only one of every two retiring civil servants over the next seven or so years. This means the armed forces' civilian and military staff will shrink by about 6,000 workers every year. Eventually the reduction will total 42,000.

The DGA move will also heavily involve the agency and its head, who will essentially become deputy defense minister, in the export trade. Traditionally, the DGA is in charge of arms acquisitions that are then supplied to the Defense Ministry. By bringing the two closer together, France hopes to better coordinate equipment needs and buy fewer superfluous items. This should result in greater efficiency -- badly needed in the face of defense budget cutbacks.

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