Overview
- France and Germany failed to revive their traditional partnership, with leaders acknowledging a growing list of unresolved disagreements.
- The SCAF future combat aircraft program is effectively stalled as the French military and the Bundeswehr clash over requirements and Dassault and Airbus Defence vie for control.
- On Russian assets and support for Ukraine, Germany pushed for seizure while France aligned with a €90 billion joint loan proposal favored by Belgium.
- Berlin pressed for a rapid Mercosur signature as industrial relief, but Paris secured a postponement to 12 January due to domestic agricultural concerns.
- Germany plans a record €512 billion in debt issuance next year, including €176 billion on money markets, as weak confidence and renewed manufacturing contraction underline ongoing economic strain.