Here's several quoted paragraphs from Francois Lureau, the Head of the French DGA.
"I don't know what President Nicolas Sarkozy's decisions are, but from what I have heard in Cherbourg, spending will not be cut. "I will not lower my guard," he said. It's hard to be clearer.
"We spend 9.5 billion euros on equipment. We will invest more to get to 11 billion. Financially, can we do it? That's what's behind [Defense Minister] Hervé Morin's cuts in back-office operations, to invest more in equipment. Eleven billion is the order of magnitude. You may have to stretch out this or that program. It's up to the president to decide. A large part of savings will come from the back office and another part from the president's choices in operational forces, where he says, "I want to do more of this, less of that."
source:
http://www.defensenews.com/story.php?i=3466951&c=FEA&s=INT
He said that the decision on the PA2 is up to Sarkozy. It will get built because Sarkozy would get destroyed by backers of the PA2. Last year, I read many articles about, how would the French find money to finance their procurement programs? The French MOD may save about as much as 4.5 billions euros a year by making the staff cuts. The French needed to increase their procurement budget by 5 billion euros a year; inorder, to fund all their procurement programs. They may have gotten the majority of the finances for their procurement programs, but some programs will still be cut. Major items like the FREMM, Barracuda, and Rafale should not face heavy cuts anymore.