Geopolitical events
On June 24, 2026, the French National Assembly passed the 'Strategic Autonomy Act', a landmark piece of legislation mandating a 25% increase in domestic defense production and imposing strict limits on foreign ownership of critical infrastructure. President Emmanuel Macron characterized the law as a "sovereign necessity" to protect France from the economic and security volatility triggered by the 'West Asia War'. The act includes the creation of a €20 billion state--backed fund to subsidize the reshoring of semiconductor and battery manufacturing. While the policy has faced criticism from international trade partners for its protectionist leanings, the government maintains it is essential for long--term national resilience.