A proposed €150bn boost to the EU’s defence industry has reignited tensions between France and Germany, as the two nations clash over whether the funds should be restricted to European-made weaponry or open to non-EU suppliers. The disagreement underscores a deeper strategic divide between Berlin’s push for broader international cooperation and Paris’s insistence on European military self-sufficiency.
According to the Financial Times, the European Commission’s proposal to raise and lend €150bn to member states for military production has received widespread political backing. However, the specifics remain contentious, particularly over whether purchases should be limited to European manufacturers. German Chancellor Olaf Scholz has argued for an inclusive approach, stating that “it is very important to us that the projects that can be supported with this are open to countries that are not part of the European Union but work closely together, such as Great Britain, Norway, Switzerland or Turkey”.
French President Emmanuel Macron, however, remains firmly opposed to opening the initiative to external players. He has long advocated for bolstering European autonomy in defence production and warned against another wave of off-the-shelf purchases from outside the bloc. “Spending should not be for new off-the-shelf kit that is once again non-European”, Macron insisted, urging that investments should prioritise European businesses.
The dispute comes amid Europe’s broader efforts to ramp up military capabilities in response to security concerns, exacerbated by US President Donald Trump’s threats to curtail America’s defence commitments to the continent. The EU aims to address critical capability gaps in areas such as air defence, long-range strikes, intelligence, reconnaissance, and targeting. Macron has called on EU nations to “re-examine orders to see if European orders could be prioritised”, pushing a vision of defence sovereignty that contrasts with Germany’s more globalised approach.
Brussels diplomats fear that this latest initiative will fall into the same political deadlock that has stalled the European Defence Industry Programme (EDIP), a €1.5bn fund intended to support defence manufacturing. That programme has faced significant delays due to French demands to cap spending on extra-EU components and to ban military products with intellectual property protection from third countries. With just ten days left before the European Commission presents its final proposal, officials are scrambling to secure a compromise that satisfies both Paris and Berlin while ensuring broad EU support.
“There’s a lot of work that needs to be done on this. It didn’t exist a week ago and needs to be ready in less than two weeks,” an EU official admitted, signalling the urgency of the negotiations.
European Commission President Ursula von der Leyen has defended the loan-based initiative, arguing that it would “help member states to pool demand and to buy together” while also ensuring “immediate military equipment for Ukraine”. The Polish government, which currently holds the EU’s rotating presidency, is expected to play a pivotal role in forging an agreement. While the initiative can be approved by a majority of the EU’s 27 member states, French buy-in remains crucial to avoid future obstacles.
An EU diplomat involved in the talks summarised the challenge ahead: “We’re at a stage where this just needs to be sorted in the name of speed, not perfection. But if there was reluctance to ram €1.5bn past French objections, how are we expected to do €150bn?” With European security on the line, finding a resolution between two of the EU’s most powerful nations will be essential to ensuring the bloc’s military preparedness in an increasingly uncertain geopolitical landscape.
