Germany and France will relaunch closer European military cooperation this month and could start a common defence fund but there are no plans to form an EU army, Reuters cited officials as saying. EU foreign policy chief Federica Mogherini will propose deepening defence links at a June 28-29 leaders summit, despite rising Euroscepticism, and argue that EU integration can work to maintain Europe's clout alongside the United States. Proponents say closer defence cooperation among the European allies is needed particularly to reduce costly duplication in production of defence systems and programmes at a time when greater investment is required in defence technology. British scepticism about European integration has often hampered EU defence plans. After Britain's June 23 referendum, officials want to use the proposals to cement Britain's EU membership if London decides to stay. But they will still go ahead if British voters decide to leave. "The goal is a European defence union," said a senior German government official. "That is not about competing with NATO but we need a stronger Europe. If we wait for the Eurosceptics, then we will only go backwards," the official said.