France and Germany scrap FCAS combat aircraft project in major European defence setback

Pistorius and Lecornu spoke at the Federal Ministry of Defence in Berlin after multi-year talks failed to land a deal. Pistorius said Dassault Aviation's insistence on owning the pilot module on the combat aircraft had blocked the structure, while Airbus Defence and Space had pressed for a fair share of the ground-terminal and AI components. Lecornu said plainly that the two countries' strategic cultures had not converged.

France will pull forward the Rafale F5 upgrade, accelerating an initial 30-jet domestic fleet. Dassault CEO Eric Trappier said in Paris in the afternoon that operational F5 deliveries would advance to 2028 from 2030. Germany has announced preliminary meeting dates with the UK Ministry of Defence, Italy's Leonardo and Japan's Mitsubishi Heavy Industries on joining the GCAP consortium. The role of Madrid's Airbus Defence and Space subsidiary remains unclear.

The head of ASD Europe, Jan Pie, warned of a deep fracture across the European defence industry. Airbus shares fell 1.3% in Paris trading to around 165 euros, while Dassault Aviation gained 2.1%. NATO Secretary General Mark Rutte described the outcome in a single phrase: «regrettable, but understandable». European Commission Defence Commissioner Andrius Kubilius said he would convene a May call for alternative joint programmes.