A Shared Vision for European Start-ups

The unveiling of the Franco-German start-up initiative echoed a shared conviction that Europe must collectively do more to keep up with global powers, thus outlining the initiative’s goal: to catch up and compete with the US and Chinese tech giants.

On July 15, 2025, Germany and France’s Finance Ministers published a joint op-ed in Handelsblatt newspaper, declaring: „We want Europe to create an environment where innovative companies can grow into global champions.“

The following day, both ministers met near Berlin, where they issued a joint declaration asserting that Europe’s economic strength is largely dependent on the combined power of France and Germany – and that they will do everything in their power to make Europe fitter for the future.

The Joint Panel of Experts and Financial Reforms

The deal’s initial pillar is the establishment of an elite franco-German panel of experts, led by Christian Noyer (former governor of the Bank of France) and Jörg Kukies (former finance minister of Germany). This group’s mandate is clear: „This panel will develop concrete proposals to strengthen financing for startups and growth companies in Europe.“

According to Industry experts, the lack of access to capital is one of the biggest challenges faced by Europe’s start-up scene. To address this issue, the initiative is partially based on successful strategies like France’s Tibi Initiative to unlock billions of dollars in public and private venture capital, with an emphasis on scalable, strategic sectors like industrial manufacturing, green tech, and artificial intelligence.

Tracing the History of Cooperation between France and Germany

The July 2025 start-up agreement between Germany and France did not happen in isolation. It builds upon decades of bilateral cooperation, which dates back to the 1963 Élysée Treaty and the 2019 Treaty of Aachen. These agreements set the groundwork for bilateral cooperation to be renewed and expanded in response to new challenges, such as the digital transformation and the climate transition.

The most recent start-up agreement is the most ambitious and commercial joint venture to date, with the Franco-German Citizens‘ Fund already supporting over 2,000 grassroots projects and working groups created to address obstacles to cross-border economic activity. The Franco-German partnership was already investing in real-world, operational mechanisms to directly empower start-ups. One such example is the French-Bavarian Accelerator program launched in Paris on April 29, 2025, to assist entrepreneurs in operationalising the objectives of FIVE.