France shifts stance, backs non-EU participation in Brussels defence fund

France has reversed its position and now supports allowing non-EU companies to access EU-funded financial incentives aimed at boosting Europe’s defence industry. This shift comes as Brussels seeks to strengthen its domestic arms sector and reduce dependency on the US.

Initially, France had opposed the inclusion of defence companies from countries like the US, UK, Israel, and Türkiye in the European Defence Investment Plan (EDIP), arguing it should prioritize European companies to support the EU’s push for "strategic autonomy," Caliber.Az reports per foreign media.

However, French diplomats in Brussels have now backed a proposal that would allow up to 35% of EU budget-financed incentives to be spent on defense products from outside the EU, following a year of resistance.

This change in stance aligns with the EU's broader strategy, especially as it works to avoid alienating the US. One official noted that it would be difficult for the EU to criticize the incoming Trump administration for potentially reducing US military support to Europe while excluding US companies from building up the European defence industry.

The compromise proposal, which includes input from France, Germany, Italy, and Spain, was developed under the Hungarian rotating presidency of the EU. It allows participation from non-EU countries, provided they do not violate EU security principles or relations. The plan is still subject to negotiation and may change before it is presented to parliament in early 2025.

The EDIP, which seeks to stimulate investment in Europe's arms industry and encourage joint weapons procurement, was first proposed in 2023. It aims to improve the supply and availability of key defense products, address supply chain bottlenecks, and involve Ukrainian manufacturers. The initiative is backed by a €1.5 billion fund, with potential for future growth.

This drive for greater European defence self-sufficiency has gained momentum following Russia’s invasion of Ukraine and could intensify under Trump, who has vowed to shift US military focus away from Europe.

By Vafa Guliyeva