How is that possible? If France has the most capable military in Europe, wouldn't it be able to successfully fight any other nation in Europe?

How is that possible? I've showed you how.
You're equating dollars with combat capability, which isn't correct. I've shown you France's (and others') current military capabilities.

Two things: first, you haven't provided anything to show that.

Okay, you're not looking at anything I'm showing you, which is your right.
France doesn't have the ability to tank their aircraft, they have to rely on the US for that.

Has no bearing on anything.

Has plenty of bearing on lots of stuff. In 1990 the European powers had roughly 2x the militaries they have now...and they didn't contribute a ton of things to DS. Go look at the Kosovo Air Campaign and see who flew how many sorties.

I'll leave the last reply to you. I'd suggest you acquaint yourself with the force structures of the various NATO countries, who can deploy where, for how long, and how might Europe fare against a first-world peer nation.