What Does “Wartime Economy” Stand For?

What does the concept of a war economy mean? The term ‘war economy’ was first used in France by the French President at the Eurosatory exhibition on 13 May 2022: ‘an economy in which we will have to move faster, think differently about pace, ramp-up and margins, in order to be able to rebuild more quickly what is essential for our armed forces, for our allies or for those we want to help.’

In Europe, few people use these terms. It seems inappropriate when we are not yet at war in the conventional sense, and the economy is not entirely focused on arms production. Nevertheless, European states are keen to strengthen their defence capabilities and adapt their state and industrial apparatus to cope with a possible high-intensity war in the medium term. France has also been implementing a policy corresponding to what it calls a ‘war economy’ for the past three years.

Does it make sense to use it outside of wartime? Could a new concept be devised that would be more useful in achieving the stated political objectives? Do Europeans and their industry have the capacity to move to this new paradigm? What public and private policies have been put in place in this context?

This note provides an educational summary of current thinking and issues surrounding the concept of the ‘war economy’. In particular, it seeks to move beyond this controversial concept by breaking it down into several stages, in order to focus on the stage that is currently necessary: ‘preparation for war’, as mentioned in the French National Strategic Review of 2025.