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France, Germany expand defence partnership as Europe seeks more military autonomy - Finance news and analysis from Global Banking & Finance Review
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France, Germany expand defence partnership as Europe seeks more military autonomy

Published by Global Banking & Finance Review

Posted on July 17, 2026

3 min read

· Last updated: July 17, 2026

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France, Germany expand defence partnership as Europe seeks more military autonomy

Deepening Franco-German Defence Cooperation and Economic Strategy

By Andreas Rinke and Florence Loeve

BRUEHL, Germany, July 17 (Reuters) - The leaders of Germany and France pledged on Friday to deepen defence cooperation and counter intense economic competition from China, which they said was exerting drastic pressure on Europe through overcapacity and an undervalued currency.

Joint Cabinet Meeting and Overcoming Past Tensions

German Chancellor Friedrich Merz and French President Emmanuel Macron met as part of a regular series of joint cabinet meetings, looking to get past tensions over the collapse of a joint fighter jet project earlier this year.

Safeguarding European Security and Defence

"We are doing what is necessary to safeguard our freedom, our security and our collective defence," Merz told a joint press conference at which the two outlined a list of objectives including missile defence and long-range strike systems.

Addressing Economic Competition from China

Both leaders took aim at China, which they said was not respecting the rules of international trade by offering at least eight times the level of state support to its industry seen in other countries in the Organisation for Economic Co-operation and Development. 

Concerns Over Jobs and Trade Fairness

"I am not prepared to accept that things can remain as they are at present, because this is unfairly at the expense of jobs in Europe," said Merz, adding that he did not want a trade war but wanted dialogue over the currency and industrial overcapacity.

Cooperation on Nuclear Deterrence

The two leaders had already outlined proposals for France to cooperate on nuclear deterrence with Germany, following increasingly clear signs from Washington that the United States was looking to reduce its defence commitments in Europe.

Step-by-Step Approach to Nuclear Collaboration

"We're taking a step-by-step approach here, and it may well end up resulting in a new doctrine, but it's far too early to say that today," Merz said, adding that any cooperation would complement existing arrangements within the NATO alliance.

Joint Military Exercises and Financial Responsibility

For the first time, German troops will take part in a French nuclear exercise, and the two leaders inspected an air base where a nuclear-capable French Rafale fighter refuelled alongside a German Eurofighter aircraft.

Macron said France would maintain full responsibility for paying for its nuclear deterrent.

"The funding for the French nuclear programme will always be provided by France," he said when asked whether France was considering having Germany help fund the programme.

Political Cooperation and Future Defence Projects

Asked whether he would be comfortable cooperating with Marine Le Pen, leader of the far-right National Rally's (RN) parliamentary group, Merz said Germany's hand would remain extended to France, regardless of whom voters chose.

Future Combat Air System (FCAS) and Ongoing Projects

The so-called Future Combat Air System (FCAS) is set to continue despite the decision to abandon plans for a common fighter aircraft, with further development on the cloud-based information systems at the heart of the project.

"The remaining projects, including those relating to the cloud and other areas, are continuing to progress between our manufacturers," Macron said.

Governance and Supervision in Defence Cooperation

He said governance and supervision measures would be tightened for future defence cooperation, after the FCAS project fell apart amid disagreements between the two main industrial partners, France's Dassault and Airbus.

($1 = 0.8744 euros)

(Florence Loeve reported from Paris, Additional reporting by Miranda Murray, Writing by James Mackenzie, Editing by Timothy Heritage and Hugh Lawson)

Key Takeaways

  • Macron and Merz pledged to deepen Franco‑German defence ties, advancing nuclear deterrence, missile defence, long‑range strike, space capabilities and combat cloud systems after the collapse of the FCAS fighter jet project. (defensenews.com)
  • The leaders stressed Europe must safeguard freedom, security and collective defence, while citing intense economic competition from China—highlighting issues like overcapacity, heavy state support and an undervalued currency. (defensenews.com)
  • Paris and Berlin are moving toward deeper defence-industrial integration: Germany may join French-led KNDS as equal shareholder, and both will proceed on air-defence combat cloud technology. (elysee.fr)

References

Frequently Asked Questions

What did France and Germany pledge to expand?
France and Germany pledged to deepen defence partnership and enhance European military autonomy.
Why are France and Germany concerned about China?
They highlighted China's intense economic competition, overcapacity, and undervalued currency.
What is the status of the joint fighter jet project?
The original joint fighter jet project was abandoned, but related projects like the FCAS cloud system are ongoing.
How is France cooperating on nuclear deterrence with Germany?
France has proposed cooperation on nuclear deterrence with Germany, though France will fund its own nuclear program.
How does Europe plan to safeguard its security and defence?
By enhancing cooperation on missile defence, long-range strike systems, and adapting to reduced US commitments.

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