Around 4,300 soldiers, around 200 vehicles and more than 100 aircraft, some from other European countries, are taking part in the parade that was opened by Spanish troops.
The jet-powered flying device was invented by French inventor Franky Zapata, who was given a €1.3 million grant by France's army for its military development.
Macron's announcement mirrors an initiative in the USA championed by President Donald Trump for a new "Space Force" to become the sixth branch of the military by 2020.
Mr Macron's European Intervention Initiative is a 10-country coalition of European militaries ready to react to crises and the French-led initiative, which includes Germany, Belgium, Britain, Denmark, Estonia, the Netherlands, Spain and Portugal, was launched previous year.
The number of "yellow vest" protesters has dwindled to a few hundred over the past weeks from a high of around 300,000 nationwide in November when demonstrations started against fuel price hikes and later morphed into a general discontent against Macron's policies and government.
Cricket awaits new world champs after England-New Zealand final
Coming into this tournament, they were favourites and they've been playing really good cricket . Neither side has won the tournament before, guaranteeing there will be a new name on the cup.
NFL's Malik McDowell Tased During Fight With Police Officer: Footage Revealed
However, TMZ recently reported McDowell has a BAC or Blood Alcohol Content level of.189 which is twice the legal limit. At one point the officer took out his taser and pointed it at McDowell, while demanding that he lay down on his chest.
USA service member killed in Afghanistan
Furthermore, Pentagon said Afghan security forces likely will continue to clash with Pakistani forces along the border. Department of Defense has warned of continued clash between the Afghan and Pakistani forces along the Line of Durand.
He said the aim of the E2I was to "act together and reinforce our capacity to act together", adding: "Our security and our defense pass through Europe". "Never, since the end of the second world war, has Europe been so important", the French president said.
Macron had invited Merkel and other leaders to the parade as part of his drive for deeper European defence cooperation.
In February, American President Donald Trump signed a directive that directs the Pentagon to draft legislation on creating a US Space Force, which the White House said is "a bold, strategic step toward guaranteeing American space dominance".
Highligthing France's continued commitment to North Atlantic Treaty Organisation, the alliance's secretary general Jens Stoltenberg will also be present at the parade.
Outgoing British Prime Minister Theresa May had been expected to attend but Britain will instead be represented by senior cabinet minister David Lidington, the Elysee said.
Also present were members of the 5,000-strong Franco-German Brigade, which was created in 1989 as a symbol of postwar unity.