Media: France, Germany split on EU’s plan to boost military production

A proposed €150bn injection into the European Union’s defence industry has sparked a new clash between France and Germany over the continent’s rearmament strategy, particularly regarding whether it should include countries outside the bloc.

In response to growing concerns over US President Donald Trump’s threats to end American protection, Europe has pledged to increase defence spending and bolster its domestic military capabilities, which have diminished since the Cold War, Caliber.Az reports via foreign media.

Last week, the European Commission proposed a €150bn fund aimed at providing loans to EU capitals to boost military production. While the initiative has received broad political support, the details remain under intense negotiation, especially regarding whether the funds can be used to purchase arms made outside the EU.

During an EU summit on March 6, several leaders, including German Chancellor Olaf Scholz, advocated for the inclusion of "like-minded" non-EU partners in the defence projects. “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 Türkiye,” Scholz said.

However, French President Emmanuel Macron, who has long supported greater European autonomy and increasing domestic industrial production, disagreed. Macron argued that the €150bn fund should prioritize European-made defence equipment, rather than relying on external suppliers.

“Spending should not be for new off-the-shelf kit that is once again non-European,” he said. He added that to address Europe’s critical defence gaps, such as air defence and long-range strikes, “the method is to identify the best businessmen and businesses we have.” Macron further emphasized that EU member states should reassess their defence orders to prioritize European manufacturers.

Concerns are growing in Brussels that the €150bn initiative could be delayed by similar debates that have stalled the European Defence Industry Program (EDIP), a €1.5bn fund aimed at granting defense grants. This initiative faced setbacks this winter when France called for limits on spending on non-EU components and a ban on intellectual property protections for third-party products.

EU officials, who are tasked with drafting the detailed proposal within the next 10 days, are under pressure to reach a compromise that satisfies both Paris and Berlin. Commission President Ursula von der Leyen noted that the loans would help member states “pool demand and buy together” while also providing “immediate military equipment for Ukraine.”

Poland, which holds the rotating presidency of the EU, will be under intense pressure to broker a rapid agreement. Although the initiative can be approved by a majority of EU states, French support remains crucial for its success. As one EU diplomat put it, “We’re at a stage where this just needs to be sorted in the name of speed, not perfection.”

By Vafa Guliyeva