French President Francois Hollande said after meeting German Chancellor Angela Merkel today that it is important for Europe to be independent in both manufacturing drones and in using the images they produce.
He said that "more and more images are power, those who have images can act."
The plan is for the European drones to be developed between 2020 and 2025.
The US practice of using drones for lethal strikes against terror suspects has caused unease in Germany.
However, Merkel says she's confident there is "acceptance" in Germany for the idea of developing surveillance drones that could, if Parliament gives its approval, later be armed.