Felipe VI and Emmanuel Macron urge deeper energy and defence ties at Madrid forum

Infrastructure and cross-border energy links

King Felipe VI of Spain and French President Emmanuel Macron opened the Spain-France Trade and Investment Forum at the Ministry of Economy in Madrid during the French leader's state visit. Addressing government officials, including Spanish Vice Presidents Carlos Cuerpo and Yolanda Díaz, Felipe VI emphasized that physical connections across the Pyrenees constitute a shared public good essential for European energy security and industrial competitiveness. Cross-border energy integration has remained a point of discussion for over a decade. Under the 2015 Madrid Declaration signed alongside Portugal and the European Commission during François Hollande's presidency, European officials identified Iberian grid integration as an urgent priority. European authorities currently measure the cross-border electricity transfer capacity between Spain and France at 2.5 GW. An underwater transmission link through the Bay of Biscay, presently under construction, is scheduled to double that capacity to 5 GW by 2028.

Single-market reforms and industrial protection

Macron focused his address on accelerating the deepening of the European Union internal market, which encompasses 400 million consumers with high purchasing power. The French president stated that the continent operates within a deep crisis that requires structural reindustrialization, streamlined European procedures, and increased investment. He called for progress on the continental electricity framework to guarantee the free movement of low-cost, decarbonized power across borders, directly resolving energy supply vulnerabilities exposed by the war in Ukraine. In parallel with internal market integration, Macron argued that Europe must strengthen its economic defence by establishing regulatory barriers to restore fair competition against external competitors.

We have to innovate, finance and protect.

Strategic autonomy and technology partnerships

Felipe VI outlined the geopolitical and economic pressures confronting European businesses, citing rising global competition, rapid technological shifts, and the questioning of established international trade rules. In response to these conditions, the Spanish monarch called for deeper corporate and industrial alliances between Spain and France to achieve strategic autonomy for the European Union. He identified critical technological domains where bilateral collaboration is needed, specifically identifying artificial intelligence, quantum computing, space systems, and cybersecurity. Furthermore, Felipe VI stressed that joint defence industry initiatives are necessary to develop cutting-edge capabilities and secure long-term European sovereignty.

Among the projects that must give a new momentum to our cooperation are electricity and railway interconnections and hydrogen projects.

Bilateral trade and hydrogen corridors

The business forum gathered more than 240 Spanish participants and 130 French executives in Madrid, reflecting an economic relationship that generates over 130 billion euros annually in bilateral trade in goods and services. France remains Spain's largest export destination, with mutual cross-border investments exceeding 100 billion euros. Bilateral energy cooperation has evolved following policy disputes in 2022, when Macron rejected the reactivation of the MidCat terrestrial gas pipeline across the Pyrenees. France, Spain, and Portugal subsequently replaced that initiative with the H2Med green hydrogen corridor project, which incorporates the BarMar subsea pipeline designed to connect Barcelona and Marseille.