“If the deal goes ahead it would open up new prospects for Europe in the defence market,” Elisabeth Guigou, head of the French parliament’s foreign affairs committee, told Reuters. She added though that completing such huge merger deals was “not easy” and that negotiations would likely take a long time.

EADS and BAE have said they will offer the governments of France, Germany and Britain a “golden share” in the new company, which sources say is aimed at preventing a hostile takeover.

Currently, Berlin does not hold a direct stake in EADS, but is in talks to acquire a 7.5 percent holding from carmaker Daimler through state development bank KfW.

These talks have now stalled, a German government source told Reuters. However, if France holds on to its stake in a merged group, then Germany would likely strive for the same.