Latest news with #Franco-German
Euractiv
a day ago
- Business
- Euractiv
FIREPOWER: France and friends in for EU's €150bn SAFE defence fund
Take a free trial of Euractiv Pro to get FIREPOWER in your inbox. Good afternoon and welcome back to Firepower. This week Firepower got word that France, along with Belgium and Romania, will likely join the EU's massive €150 billion SAFE funding programme for military procurement. More capitals may well follow in the next few days as the deadline to formally join will run out at the end of the month. Though it's not sure the EU countries will actually use (or want, or even need) the entire fund. More on that below. In today's edition, we also have fresh numbers from the Czech ammo initiative for Ukraine, while we explain why an extension for the EU's ammunition production iniative ASAP is as good as dead. Meanwhile, Firepower has obtained a list of NATO's draft calendar running through 2027, including a summit to be held in Ankara. We recommend you also watch out for Germany's Friedrich Merz and France's Emmanuel Macron meeting in Berlin on Wednesday, followed by their two defence ministers on Thursday. Franco-German defence cooperation will be high on their agenda given recent clashes over their joint fighter jet project. EXCLUSIVE: Trio onboard for SAFE defence spending Good news for the Commission first: FRANCE IS POISED TO JOIN the EU's €150 billion loan scheme for military procurement, sources told Firepower this week. So are Belgium and Romania. This would bring the total number of EU countries interested in the Commission's financing plan to nine, Firepower's tracking shows. Still, the clock is ticking: capitals have until 29 July to indicate how much money they want from the pot, and the industry still has little clarity on what exactly governments want to buy. Underspend: Despite the newcomers, the COMMISSION FEARS it will struggle to allocate the full €150 billion this autumn, four sources told Euractiv, because of a lack of interest in sizeable loans for rearmamanet. All in all, Brussels estimates EU countries will request between €75 and €100 billion, one of the people briefed on the file said. Ask us for the cash: The concern was made clear in a polite-but-pointed letter from EU defence and finance chiefs Andrius Kubilius and Valdis Dombrovskis sent last weekend seen by Euractiv, urging capitals to make use of the loans available. 'We look forward to constructive engagement to make SAFE a success', the letter reads. On your radar US in talks with Europe on tapping defence stockpiles for Ukraine EU vs TRUMP. Another piece of news arrived this week, stepping on the breaks of the EU's ambition to support EU-made products' research, production and procurement: Washington convinced a dozen of wealthy EU countries to stock up on more US-equipment – not only to arm Ukraine, but to replenish their own shelves – promising fast deliveries of the crown jewel: Patriots. The move left Switzerland 's deliveries hanging. Germany's Merz also said yesterday that its delivery to Ukraine could be finalised within weeks . If pouring billions into the American arms industry wasn't enough of a blow, the US envoy to NATO told Firepower that his 'top priority' is to promote defence industry cooperation and co-production with the Europeans, including joint ventures and expanding output. A potential conflict? We will be watching. RENDEZ-VOUS last week of August in Denmark, where EU foreign affairs ministers will discuss how to use Russia's frozen assets around the bloc to pay for American arms to send to Ukraine, EU top diplomat Kaja Kallas said . WAITING LIST. In the meantime, the industry is still waiting for NATO countries' shopping list, as reported by Firepower , meant to give arms makers perspective on incoming orders. EDIP GOVERNANCE DILEMMA. The last round of technical talks before the summer break on EDIP, the EU's blueprint for subsidising industry and joint military purchase, ended without a compromise on supply chain surveillance, according to Euractiv's information. MEPs and capitals proposals differ on who should map out and monitor supply chains. EU countries are wary of giving the Commission too much power to identify and report on their manufacturing capabilities. EU lawmakers, instead, are more open to Commission involvement, but only with safeguards for handling sensitive data. Negotiations resume the week of 22 September, when political negotiations kick off. ASAP NO MORE. The €500 million plan to boost ammunition production is officially dead, according to the latest agreement on the EU's mini- simplification package on defence, seen by Firepower, brining EU countries on the same page with the Parliament . NEW JOB. Jitka Látal Znamenáčková, the current Czech ambassador to the political and security committee in the Council, is moving to the Berlaymont with a focus on defence policies. RUSSIA ATTACKS. NATO countries "are determined to employ the full range of capabilities in order to deter, defend against and counter the full spectrum of cyber threats", they wrote in a strongly-worded statement against Russia published Friday after the United Kingdom identified spies targeting the country and its military allies with cyber attacks. EXCLUSIVE: NATO's 2025 – 2027 calendar The makeover of NATO HQ's entrance in the north of Brussels is finished, creating a much more enjoyable environment with benches and a garden for officials, diplomats, military personnel and reporters wanting to take a break in the sun between meetings. It seems the perfect place to get head-on the ministerials NATO has planned for 2026. Firepower has obtained a list of the Alliance's tentative calendar: Defence: 16-17 October, 11-12 February, and 18-19 June Foreign affairs: 2-3 December, 1-2 April, and 20-21 May (in Sweden for the informal meeting). NATO Summit is planned around 8 August in Ankara Looking ahead to 2026-2027: Defence: in October, on 17-18 February, and 17-18 June Foreign ministerials on 1-2 December, 7-8 April, in May in Croatia for the informal before the Albania Summit. The Money Corner Commission pitches €131bn for defence and space in EU budget MFF CHEAT SHEET. The Commission's proposed €131 billion for both defence and space for the next EU's seven-year budget is already making the rounds. But there's more for defence, including €17.7 billion for military mobility under the Connecting Europe Facility, €6.4 billion for collaborative defence and space research under Horizon Europe and a new DARPA-approach for the European Innovation Council. The €865 billion Cohesion Funds could also be tapped for defence. Von der Leyen has proposed a broader €150 billion-strong loan scheme called 'Catalyst Europe', similar to SAFE loans but not limited to defence. Meanwhile, the European Peace Facility, the EU's war fund to pay for weapons for third countries, including Ukraine, should get €30.5 billion. PAY UP. All the spending comes with a price tag. So, among other EU income streams, a taxation on cooperations with an annual net turnover of over €100 million is planned. While SMEs would be exempt, Europe's biggest defence players – think Airbus, Leonardo, Thales and MBDA – could be asked to contribute a share of their skyrocketing revenues. CIGARETTES FOR TANKS? The Commission wants the EU budget to get €78.4 billion over seven years from tobacco taxation, enough to cover a substantial portion of new defence spending. Read more. Bombshell budget Minutes before a key EU's long-term budget defence briefing at the Commission HQ in Brussels, the Berlaymont, a bomb alert drill locked the building down. Security told journalists to stay out, unless they wanted to be escorted to a bomb shelter. Ironically, the designated bomb shelter was none other than the Salle de Presse – exactly where reporters were trying to go in the first place. News from the Capitals THE NETHERLANDS said this week it is considering buying and repurposing 24 decommissioned train carriages of the state-owned railway operator NS to mobile military hospitals. Just earlier, the defence ministry also reached an agreement with airline KLM to keep former F-35 pilots up to date on their training. The move followed accusations that KLM was luring military pilots away from the air force. GERMANY is reportedly weighing in on acquiring a minority stake in the Franco-German defence company KNDS, amid concerns that the German half's planned share sell-off could upset the company's delicate bilateral ownership balance. Earlier this month, Berlin explored a possible stake in TKMS, the shipbuilding division of ThyssenKrupp, should it go public. These moves show how serious the Berlin is in following through on its intent to intervene when Germany's security interests are threatened by ownership changes of key defence companies. CZECH Foreign Minister Jan Lipavský warned this week that a victory of Andrej Babiš as prime minister in the October elections would sign the end of the signature ammunition initiative to Ukraine. Czechia and its 12 partners delivered 800,000 large calibre ammo have been delivered including 290,000 of the 155mm type to Kyiv in 2025, he said, hoping it will continue. While FRENCH prime minister François Bayrou pitched on Tuesday a total freeze of state spending in his 2026 budget plan, Emmanuel Macron announced €3.5 billion extra for defence, financed through 'productivity' (not debt!). Opposition leaders have already called for a vote of no confidence in the autumn. According to Socialist MP Anna Pic, talking to Firepower, Macron's figure is not fresh contracts, but what the government actually has to pay for some of what defence companies have already delivered.
DW
2 days ago
- Politics
- DW
Germany updates: Dobrindt talks migration with EU ministers – DW – 07/18/2025
German Interior Minister Dobrindt is hosting colleagues for a mountaintop summit on harsher migration policy across the EU. The meeting comes as Germany deports dozens of Afghans. Stay with DW for the latest. German Interior Minister Alexander Dobrindt is hosting colleagues from across the EU for a summit at the country's Zugspitz mountaintop. Dobrindt is pushing for tougher EU migration policy. Berlin on Friday morning deported some 81 Afghans, the second such flight since the Taliban returned to power. Chancellor Friedrich Merz will give his first summer press conference since taking Chancellor Friedrich Merz on Friday morning will hold his first summer press conference since taking the oath of office in May. The annual event, which usually begins with a statement by the chancellor followed by journalists' questions, can last hours and is typically a chancellor's last appearance before heading into summer vacation. Merz is expected to field questions on the recent postponement of appointments to Germany's Constitutional Court in parliament, the war in Ukraine, and the ongoing tariff spat with the US. German Interior Minister Alexander Dobrindt on Friday will host several EU colleagues for a discussion on tightening migration policy in the bloc. The meeting, which will take place at the top of Germany's highest mountain, the Zugspitze, will be attended by the interior ministers of Austria, the Czech Republic, Denmark, France and Poland, as well as by EU Commissioner for Internal Affairs and Migration Magnus Brunner. The ministers are scheduled to discuss deportations to third-countries as well as plans to shift asylum application processes there, fighting human trafficking, and the security of EU exterior borders. Dobrindt has said he aims to release a so-called "Zugspitze declaration" at the meeting's end. Critics have dubbed the meeting the "isolation summit." and welcome to our coverage from DW's newsroom in Bonn. Today, German Chancellor Friedrich Merz will hold his first summer press conference, while Interior Minister Alexander Dobrindt hosts EU colleagues to discuss migration policy, and Foreign Minister Johann Wadephul heads to Paris for talks on Franco-German ties and other international issues. This will all take place as Germany carries out its second deportation flight of Afghans since the Taliban returned to power. Stay here with us for this and other news from Germany.
Mint
3 days ago
- Business
- Mint
BAE Sees ‘Phenomenal Pace' on Next Fighter Jet as Rival Sputters
(Bloomberg) -- BAE Systems Plc said it is speeding ahead with the development of its next-generation Tempest fighter jet, as a rival European program is hamstrung by Franco-German squabbling. The British defense company this week unveiled the design of a demonstrator aircraft, and said that it has already begun manufacturing the main structure, wings and tail for that jet at its site in Lancashire. The milestone puts the test aircraft on track to fly within three years, with the final piloted supersonic plane — the first to be developed in the UK in 40 years — to be delivered by 2035, the firm said. 'The pace of this program is absolutely phenomenal,' Herman Claesen, managing director for Future Combat Air Systems at BAE Systems, told reporters on a video call on Tuesday. 'By following the timeline we are following at the moment, we will be one of first companies to be able to offer the sixth-generation capability into the export market.' The US, China and Russia are also developing sixth-generation aircraft, which are likely to include enhanced stealth, sensor and autonomous capabilities as well as the improved ability to coordinate with other aircraft and drones. London-based BAE is one part of the three-party Global Combat Air Programme, which also includes Italy's Leonardo SpA and Japanese partners. Engine maker Rolls-Royce Holdings Plc and missile company MBDA are helping with the development of the demonstrator in coordination with the UK's Ministry of Defence. BAE's optimistic tone and declarations of 'excellent progress' contrast starkly with the rival German-French-Spanish effort. The two main contractors, France's Dassault Aviation SA and Airbus SE, whose defense business is based outside Munich, are bickering over control of FCAS, also known by its French acronym SCAF, which has put the development of the planned successor aircraft to the Eurofighter at risk. The issue has escalated to the point that German Chancellor Friedrich Merz and French President Emmanuel Macron will seek to quell the squabble at a meeting in Berlin this month. In 2023, Airbus predicted that FCAS will be operational by 2040. When asked about whether it makes sense for Europe to have two competing fighter jet programs, Claesen said GCAP's timelines were much faster at the moment than what they've seen at the Franco-German program, although he was not privy to any details at the rival endeavor. 'We're focused on our program, we're focused on our job, it is up to the governments to decide whether there is enough money in Europe and strategically whether it is important to have two programs or to have one program,' Claesen said. GCAP is being driven by the UK, Italy and Japan. A joint venture to lead the project — recently dubbed Edgewing — has BAE, Leonardo and Japan Aircraft Industrial Enhancement Co. each owning 33.3%. There has been speculation that other countries could join the project, especially Saudi Arabia, which is a key export market for the Eurofighter Typhoon jet. 'We can make anything happen, but the likelihood is diminishing all the time considering the pace we have on the program,' Claesen said of adding new partners, because doing so would have an impact on timing and costs. GCAP has defined five levels of involvement, ranging from the most basic of ordering the plane off the shelf to manufacturing the aircraft in their own country, he said. 'I am pleased to say there's a bit of a queue forming of various nations who want to talk to the three governments' to be involved with the program, Claesen said. --With assistance from Gerry Doyle. More stories like this are available on
Yahoo
3 days ago
- Business
- Yahoo
KNDS owners explore IPO or stake sale amid defense sector interest
-- The German family shareholders of KNDS NV are looking to reduce their ownership in the European tankmaker through either a public listing or stake sale, as investor interest in defense companies grows, according to a Bloomberg report on Wednesday. The family members behind Krauss-Maffei Wegmann, which merged with France's Nexter to create KNDS, have reportedly notified the German government about their plans to sell part of their 50% stake. They are considering options including an initial public offering (IPO) and partial divestment. Berlin is in early stages of examining the purchase of a blocking minority of 25.1%. Several private equity firms, Middle Eastern wealth funds, German asset managers and family offices have shown early interest in acquiring a stake in the Franco-German land defense group. Investment firms including Advent, CVC Capital Partners Plc, KKR & Co (NYSE:KKR). and Warburg Pincus have begun preliminary discussions about a potential investment. An IPO remains the preferred option for KNDS owners to partially cash out their stake. They have been discussing with potential advisers about a listing that could happen next year, potentially valuing the defense company at €20 billion ($23 billion) or more. If they pursue a listing, the German family shareholders and the French government, which controls the other 50%, might each sell slightly more than 10% of their stakes. At the same time, the German families, including the Bode and Braunbehrens clans, are receiving interest from financial investors as they seek to reduce their stake further. The family shareholders might also consider interest from large industry peers like Rheinmetall (ETR:RHMG) AG. Any new shareholders would likely need approval from the German government. If an IPO or stake sale doesn't materialize, the German family owners might even consider breaking up the company to facilitate an eventual exit. This would undo the 2015 merger of Krauss-Maffei Wegmann and Nexter. This option is currently viewed only as a backup plan but might be favored by some German lawmakers and labor unions while giving the family more flexibility to sell their stake. The final decision is complicated by the German-French ownership structure, with both sides able to block strategic changes, and differences among some individual family members. Related articles KNDS owners explore IPO or stake sale amid defense sector interest Victoria's Secret Exposed: The Warning Sign Behind the Stock's 52% Collapse Buy this massive AI stock into upcoming Q2 print: Morgan Stanley
Euractiv
5 days ago
- Business
- Euractiv
France positions itself as ‘driving force' behind Europe's rearmament
France has reaffirmed its leading role in driving Europe's defence ramp-up, counting on Germany as a strategic ally and backing new EU defence funding instruments. On Monday, the French prime minister's office published a 100-page strategic review outlining the country's priorities until 2030 in response to a 'changing strategic context'. France aims to strengthen Europe's role within the NATO alliance – historically led by the United States – while advancing the continent's strategic autonomy amid Washington's gradual disengagement from Europe, according to the document. Paris believes the best way to achieve this is by reinforcing the 'essential role' of the Franco-German partnership. 'F rance and Germany will jointly contribute to strengthening Europe's integration, capacity for action and defence capability', the strategy lays out. Other key bilateral partnerships cited include the United Kingdom, Italy, and Spain. Poland – Europe's largest NATO spender – ranks only fifth in importance. More funding President Emmanuel Macron announced on Sunday that France's defence budget would increase by €3.5 billion in 2026, followed by a further €3 billion in 2027, in addition to the military planning bill already aimed at boosting defence spending through to 2030. Macron said the increase should be driven by "more activity and more production", not by further debt. H owever, it remains unclear where the additional funding will come from. Prime Minister François Bayrou is expected to present the 2026 budget bill on Tuesday, which should outline how the additional defence spending will be financed. The proposal, however, is likely to be rejected by all opposition parties, and French media report that the ensuing parliamentary debate could threaten Bayrou's position in the autumn. France currently has a budget deficit of 5.4% of GDP – more than 2% above the EU's 3% limit. So far, 16 EU countries have requested to activate the Commission's national escape clause , allowing them to exceed the deficit ceiling and borrow up to an additional 1.5% of annual GDP for defence over the next four years. Asked by Euractiv how the Commission views France's proposed defence spending, a spokesperson said such increases "should be done without undermining fiscal discipline". European funding tools On the EU side, the strategic review expresses support for new European funding options, citing the Commission's Defence White Paper, which outlines a €150 billion envelope for joint procurement – dubbed SAFE – green-lit by member states in May. As of now, France still has not made clear whether it will take part in SAFE. EU countries have until December to submit joint projects to the Commission. France could chip in on projects including space communications, surface-to-air defence, and tactical and strategic air transport, the strategy notes. (aw)
