European countries are aware of their need to rearm, but Italy’s 2026 defence budget might face cuts after the EU put Italy in an excessive deficit procedure (EDP) following its 2025 deficit of 3.1%. This scenario compromises Italy’s access to EU financing instruments for defence, and, underscores the urgent need to reinforce bilateral cooperation. France, facing similar budget difficulties, is a partner with high potential.
Relations have not been entirely smooth between the two countries over the last two decades and particularly rocky between Prime Minister Meloni and President Macron. The countries have often oscillated between principled positions at odds with one another to realism regarding common interests such as matters concerning the Mediterranean.
The relationship evolved considerably with the 2021 Quirinale Treaty devised to establish stability for cooperation despite fluctuating relations between political leaders. Furthermore, there has been a notable convergence regarding security developments that, for example, drove both countries not to participate in the American-conceived PURL initiative to support Ukraine due to budget constraints and a preference for European arms procurement.
The two countries are also in similar situations economically and budgetarily with France also handicapped by hefty debt. In 2024, the EC launched EDPs against France and Italy. France has until 2029 to “put an end to the excessive deficit situation,” whereas Italy only had until 2026. The EU caps the ratio of government debt to GDP at 60%; in 2025, France’s was at 115.6% and Italy’s 137.1%.
On defence spending, the two are also comparable with France’s 2025 spending percentage of GDP at 2.05%, Italy 2.01%. Concretely, this meant France spent $68bn and Italy $48.1bn – far behind the $114bn German budget. This led former Italian NATO representative Stefano Stefanini to argue that for military projects, Rome and Paris have “a more natural alliance” since “On defense spending Italy and France are closer, because Germany has the fiscal capacity to spend by itself…”
Indeed, unlike the ups and downs of political relationships, this “natural alliance” has produced concrete defence projects that are highly encouraging and seen as models of success in the larger context of pan-European cooperation.
In Space and At Sea
Italian/French structures for developing European space and satellite capabilities are highly integrated. This includes the ‘Space Alliance’ founded in 2005 uniting Telespazio (Leonardo 67%, Thales 33%) and Thales Alenia Space (Thales 67%, Leonardo 33%) to leverage their combined expertise to offer solutions ranging from satellites to services with a focus on secure military communications. Last October, Airbus, Thales and Leonardo announced a new satellite group based in France to compete with Starlink. Negotiations are still being finalised, but the project could employ up to 25,000 people across Europe with annual expected revenues of €6.5 billion.
The two countries’ navies and shipbuilding industries also have a history of successful partnerships. French Naval Group and Italian Fincantieri have collaborated for decades including to make Horizon-class frigates beginning in 2000 in a joint venture between Armaris (Thales and DCN) and Orrizonte Sistemi Navali (Fincantieri and Finmeccanica). Naval Group and Fincantieri then created another joint venture in 2020, Naviris, that in 2023 was awarded a contract through OCCAR (Organisation for Joint Armament Co-operation) to upgrade the French and Italian Horizon-class for a Mid-life Upgrade (MLU). In a separate programme, Naval Group and Thales joined forces in 2002 with the Orizzonte Sistemi Navali (OSN) consortium of Fincantieri and Leonardo to develop the FREMM programme. 16 out of the planned 18 boats have been delivered (eight for each country) and others have been exported, but in 2024, the FREMM contract was amended for the last two FREMM EVO frigates, valued at €1.5 billion, that will supposedly be entirely Italian-made. OCCAR describes the HORIZON MLU/FREMM programme as “the most ambitious and innovative European naval defence project.”
Joint Missile Power
But Italian-French industrial defence collaboration has been the most effective on missile projects which aligns with NATO’s “top priorities” of air and missile defence and long-range weapons. This is primarily through EUROSAM, a consortium including Thales and MBDA subsidiaries in Italy and France, established in 1989 that designs and produces “medium and long range naval and ground-launched air-defence missile systems also known as Future Surface-to-Air Family of ASTER missile systems”. ASTER 15, 30 and upcoming 30 B1 NT missiles equip SAMP/T air and missile defence systems made by EUROSAM. Both armies use SAMP/T systems and, after successful use in Ukraine and long delays for American Patriots, Denmark ordered the upcoming SAMP/T NG, Turkey has requested them, and Switzerland is considering it.
In April 2024, then-Minister of the Armed Forces Sébastien Lecornu met with Guido Crosetto, Italy’s Defence Minister, in Corsica. They signed a letter of intent to increase production of ASTER missiles with Lecornu stressing the value of the MBDA consortium: “This is a model of cooperation that does not compromise our sovereignty. Each country retains its full capabilities and, of course, control over its respective subsidiary.” They also pushed for opening a new production line in Italy, which MBDA has since done. In April 2026, MBDA also announced a €5 billion investment for 2026-2030 including plans to double 2026 output of ASTER missiles and hire 2,800 new employees; MBDA employs over 2,000 people in Italy and 8,000 in France.
Aster missiles also equip both navies, including the Horizon-class and FREMMs, and future ships including France’s €10 billion aircraft carrier, the France Libre, and Italy’s two DDX air-defence destroyers (a €2.7bn project). In addition to air defence missiles, Italian Navy Chief of Staff, Vice Admiral Giuseppe Berutti Bergotto, told Parliament in March the navy needed to be equipped with “long-range strike capability, both from naval units and submarines, to ensure effective response options even at great distance.”
To fill this need, Paulo Mauri from il Giornale says American missiles are not currently a reliable choice. Mauri believes the MdCN (Missile de Croisière Naval), a long-range ‘European Tomahawk’ cruise missile with a 1400km range and anti-ship and land attack capabilities from MBDA-France, would be the fastest European option. The missiles already equip the French navy and a feasibility study was contracted by OCCAR in 2024 about including the Naval Cruise Missile (MdCN) on Italian FREMM EVO frigates as well, but no decision yet.
The countries are also collaborating on the STRATUS programme started by France and the UK in 2017; joined by Italy in 2023 with the Italian Navy and Air Force allocating €10 million between 2024-2028. MBDA affiliates from participating countries are developing this next-generation of sea- and air-launched missiles to replace Storm Shadow/SCALP (combat-proven across numerous theatres of operations, notably in Ukraine), Harpoon, Exocet and TESEO missiles (Italy). The programme’s missiles will provide capabilities including “deep strike, anti-ship warfare, SEAD/DEAD, and attacks on high-value assets from air and naval platforms…” Gen. Dominique Tardif, Major General of the French Air and Space Force, said of STRATUS’ capabilities, “This is fundamental and essential to air superiority, and it is how we will manage to move from a war of attrition to a war of decision.”
These different examples reflect a true convergence of the understanding of operational needs and in the industrial response to them. As European leaders finally realise Europe can only rely on itself, particularly for long-range strikes and air defence, French-Italian expertise in the missile sector offers huge potential, but is just waiting for greater political commitment that would encourage other European partners to follow suit.
