France and Germany abandon joint fighter jet project as companies unable to reach agreement
Europe's next-generation Future Combat Air System (FCAS) has been formally wound down after French and German defence companies failed to reach agreement on industrial workshare. The roughly €100bn programme is seen as a heavy blow to the continent's pursuit of defence sovereignty.
According to Euronews, French President Emmanuel Macron and German Chancellor Friedrich Merz confirmed that the FCAS programme is being wound down and cannot continue in its current form. Lead contractors Dassault Aviation and Airbus Defence and Space failed over the past six months to agree on software, sensor and final-assembly shares.
In a presidential statement, Macron said the two countries would seek "a new architecture that responds to the technological needs of both nations," while Merz said Berlin could explore an alternative European framework together with Spain. A European Commission spokesperson called the outcome "a regrettable development" and said the European Defence Fund would be restructured.
Dassault shares rose 2.1% in Paris trading while Airbus Defence fell 1.8%. NATO's Secretariat said uncertainty over the alliance's post-2035 air dominance planning has increased. This article is not investment advice.
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