Twelve EU countries challenge France over access to future defence funding

Yesterday 16:31

By: Azzat Manal

Twelve EU countries challenge France over access to future defence funding

Twelve European Union countries are backing a proposal to keep future EU defence programmes open to selected non-EU partners, putting them at odds with France's push for stricter European preference rules. The disagreement is emerging as member states negotiate the bloc's long-term budget for 2028–2034 and the future structure of European defence financing.

A joint non-paper signed by Germany, Austria, Denmark, Estonia, Finland, Italy, Latvia, the Netherlands, Portugal, Romania, Sweden and Slovenia calls for greater openness to third-country participation in EU defence initiatives. The document argues that allowing partners outside the EU to participate would send an important signal to allies and partners beyond the bloc.

Germany is among the countries supporting broader participation, while France has advocated stronger conditions favouring European defence manufacturers. The debate is particularly relevant to Ukraine, whose defence industry and military cooperation with European countries have expanded significantly since Russia's full-scale invasion in 2022.

The issue is linked to the proposed European Competitiveness Fund, one of the main components of the European Commission's draft budget for the 2028–2034 period. The Commission has proposed a long-term EU budget of almost €2 trillion, including a €409 billion European Competitiveness Fund covering strategic areas such as clean technologies, digital development, health, agriculture, defence and space.

Within that framework, the Commission has proposed around €131 billion for the defence and space component, representing a substantial increase in EU-level funding compared with the previous seven-year budget. The proposal is intended to strengthen Europe's defence industrial capacity, support strategic technologies and improve cooperation across the European defence sector.

The question of who can benefit from these programmes is therefore becoming an important part of the wider budget negotiations. France's position focuses on ensuring that European money supports European industrial production, while the group led by Germany argues that cooperation with trusted partners outside the EU can contribute to Europe's security and defence capabilities.

Ukraine is particularly relevant to the discussion because of its extensive experience with modern warfare and its growing defence-industrial links with European countries. The Commission's proposed 2028–2034 budget also envisages up to €100 billion in support for Ukraine, although the precise arrangements remain subject to negotiations and approval through the EU's institutional process.

The proposed multiannual financial framework has not yet been finalised. Member states and the European Parliament still have to negotiate the final structure and allocation of funds before the 2028–2034 budget can take effect.

The dispute over third-country participation reflects a broader debate about how the European Union should develop its defence industry while maintaining cooperation with strategic partners. The final rules will determine the conditions under which companies and defence industries from outside the EU can participate in programmes financed through the bloc's future budget.