France battles to maintain control over its exported arms.
Paris has firmly rejected any revision of current EU regulations on defence export controls within the bloc. French officials fear losing oversight of where their military components end up.
The European Commission proposed changes to ease the movement of defence components across EU countries. The idea is to reduce administrative burdens and accelerate weapons production during a time of increased defense demand.
After an unsuccessful attempt two years ago, the EU executive proposed changes again within the European Defence Industry Programme.
The programme seeks to subsidise arms production on the continent to strengthen Europe’s military-industrial complex for the long term.
One year into EDIP negotiations, Paris maintains its opposition to looser export control rules. The French stance creates tension as other member states push for reduced restrictions.
The current system requires French approval when a company sells sensitive defence products to another EU country.
If that second country wants to incorporate the component into another product for re-sale, it must seek France's approval first.
The proposed EDIP clause would bypass this requirement. EU countries could re-sell sensitive French products without Paris having any say in the matter.
French Arms Industry Shows Remarkable Growth
France ranks as the world’s second-largest arms exporter after the United States.
Since Russia invaded Ukraine, French weapons manufacturers have ramped up production.
KNDS, the French-German defense group, is an instance of this growth.
The company has tripled production since 2022, investing €600 million of its own capital to expand manufacturing capacity for both Caesar howitzers and 155mm shells.
Before 2022, KNDS produced one or two Caesar systems monthly. Now they make six, with plans to reach eight by year’s end. The workforce at their Bourges site has increased by a third over the last two years.
Orders shot up by 40 percent in 2024 compared to the previous year, with sales reaching €3.8 billion.
The company has a full order book for the next three years.
Such growth follows President Emmanuel Macron’s 2022 call for France to enter a “war economy” in the wake of Russia’s invasion of Ukraine.Â
Marcon urged weapons manufacturers to innovate more, produce more, and work faster.
The Strategic Importance of Control Over French Arms
France’s stance on export controls comes from a deep-rooted commitment to sovereignty and security.
The French control system for military equipment operates on a general principle of prohibition, except with state authorisation and state control.
This places the entire defence sector and its flows under strict government oversight.
License applications undergo interministerial evaluation through the Commission for the Export of War Materials, chaired by the Secretary General of Defense and National Security.
The commission includes representatives from the Foreign Affairs, Defense, and Economy ministries.
This approach allows France to maintain what it considers one of the most comprehensive export control systems in the world.
France also participates in all international instruments that organise consultations on arms export issues.Â
The country applies international embargoes established by the UN and European Union, while making all export data publicly accessible in annual parliamentary reports.
Competitive Advantage Through Export Control
Maintaining strict control over arms exports gives France a unique edge in the global arms market.Â
The Caesar howitzer, a truck-mounted self-propelled system, serves as a prime example of French military technology excellence. The systems can fire up to six shells per minute at ranges of up to 40 kilometers with surgical precision.
Currently, 16 countries worldwide use Caesar systems, with around 90 percent of the 100,000 shells they produce now deployed on Ukrainian battlefields.
By the end of 2025, France will have sent 113 Caesar canons to Ukraine.
French officials worry that loosening EU export controls would weaken their ability to monitor and control where these sophisticated weapons end up.
Their concern becomes even more acute as European countries seek to rapidly increase defence capabilities in response to the Russian war effort.
Growing Political Divide Over European Defense Strategy
The disagreement over export controls plays into a wider political divide about European defense strategy.
France champions “strategic autonomy” – the concept that Europe should develop independent defense capabilities rather than relying heavily on external powers like the United States.
EDIP discussions have faced postponements with no deal in sight as political wrangling over different strategies continues. The program aims to revamp how countries manufacture weapons over the coming decades.
Hungary, which held the EU presidency since September, tried to push ambassadors to discuss and approve the text but with limited success.
This shows the inherently political nature of determining which companies, factories, countries, or contracts may receive EU subsidies in the years ahead.
France’s views on the programme contrast visibly with those of most other EU members.
Paris pushes for the strongest possible EU preference, worried that alternative leadership could rewrite the text against French interests.
The country has even threatened to cut off EU defense funds.
The Trump Factor in European Defense Calculations
Donald Trump’s return to power in January amplifies concerns about weapons sovereignty.
The U.S. president has threatened to turn his back on Ukraine and questioned Washington’s commitment to NATO and European defense.
This political review makes France’s position on controlling its arms exports even more relevant.
Laurent Monzauge, KNDS site general manager, notes that none of the components used in manufacturing their weaponry come from the U.S.
"They're ITAR-free," he explained, referring to the US regulations governing military materials export and import.
“It’s a question of sovereignty, of course,” Monzauge added, pointing up the French determination to maintain independence in defense manufacturing.
Rising Stakes for European Arms Production
The war in Ukraine has turned European defense from a theoretical concern into an immediate necessity.Â
France has committed to increasing its defense budget from €50 billion to €67 billion by 2030, with Macron discussing a potential increase from 2 percent to 3.5 percent of GDP, though without a specific timeline.
The French arms industry has quite a few challenges despite its growth.
Finding skilled workers is a major hurdle. Manufacturing modern weapons systems requires specialized expertise that has become rare during decades of reduced defense spending.
KNDS aims to recruit 50 more staff for its Bourges site, especially for specialised tasks like mechanized welding.Â
The company has established a campus at its La-Chapelle-Saint-Ursin site to train machinists through one-year apprenticeships.
Paris’ Ambitions to Lead Europe’s Defense Revamp
France’s determination to maintain control over its arms exports demonstrates a broader vision for European defense.
While other EU members seek greater flexibility and reduced administrative burdens, Paris insists that proper oversight of weapons systems serves both national and European security interests.
As Europe awakens from its "decades-long slumber" in defense production, France has emerged as a leader.
Its growing arms exports and expanding manufacturing capacity position the country at the forefront of Europe’s military-industrial renaissance.
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