Germany, France Draft China Trade Roadmap as EU Deficit With No. 2 Economy Widens
Updated
Updated · Bloomberg · Jul 16
Germany, France Draft China Trade Roadmap as EU Deficit With No. 2 Economy Widens
3 articles · Updated · Bloomberg · Jul 16
Summary
Germany and France said they will draw up a joint roadmap to tackle widening trade imbalances with China, marking a closer alignment on a tougher economic stance.
Friedrich Merz said the EU’s ballooning trade deficit with China must be addressed, while stressing he does not want a new conflict with Beijing.
Emmanuel Macron struck a harder tone in Cologne, saying Europe is facing an “aggressive” trade war from China.
The China push came during a Franco-German retreat near Cologne that had already been aimed at repairing ties after the €100 billion FCAS fighter-jet project collapsed.
Can Europe's sovereign defense projects overcome industrial rivalries to reduce its reliance on American military technology?
As Paris and Berlin deepen defense ties, will this create a two-speed Europe and sideline other allied nations?
Is France's new 'forward deterrence' a genuine shield for Europe or a direct challenge to NATO's nuclear unity?
The End of FCAS: How the Collapse of Europe’s Flagship Fighter Jet Project Reshapes Defense Integration and Industrial Strategy
Overview
In June 2026, the Franco-German Future Combat Air System (FCAS) project was officially abandoned after years of difficulty and unresolved disagreements. The core issue was deep differences in requirements and strategic visions between France and Germany. France wanted a unified European jet, while Germany had specific defense needs, especially regarding nuclear capability and carrier operations. These disagreements led to a lack of consensus on the jet’s design and capabilities, making it impossible to move forward. The collapse of FCAS highlights the challenges of multinational defense projects when national priorities cannot be aligned.