France and Germany have decided to abandon the development of the joint combat aircraft FCAS (Future Combat Air System), one of the most ambitious European defense projects.
The decision comes after months of deadlock caused by disagreements between the Airbus and Dassault Aviation builders, who failed to reach an agreement on the leadership and organization of the program.
The announcement was made on Monday by the German government, and the position is also shared by the Elysee Palace.
According to Berlin, Chancellor Friedrich Merz proposed to President Emmanuel Macron to no longer continue the development of a joint combat aircraft, after the involved companies failed to overcome the divergences blocking the project.
FCAS was launched in 2017 by Emmanuel Macron and former German Chancellor Angela Merkel, and two years later, Spain also joined. The program was designed to be the future backbone of European air power after 2040 and was intended to replace the Eurofighter Typhoon aircraft in Germany and the Rafale in France.
Dispute between Airbus and Dassault blocked the project
The main obstacle was the conflict between Dassault Aviation, representing France in the program, and Airbus, which represented the interests of Germany and Spain.
Dassault insisted on leading the development of the new combat aircraft and rejected the idea of an equal partnership with Airbus. At the same time, agreements between the three states stipulated equal sharing of costs and responsibilities, with each bearing approximately one-third of the development.
In February, Merz had already publicly expressed doubts about the future of FCAS, and a new attempt at mediation between the involved industries failed to unlock the situation.
"Only Emmanuel Macron still believed in the survival of FCAS. The sooner the decision is made, the less time we will lose to move on to the next phase," said French Senator Cédric Perrin, President of the Senate's Defense and Foreign Affairs Committee, to AFP.
A blow to European defense cooperation
Abandoning the project represents a significant failure for European ambitions to build common military capabilities, at a time when the continent's states are trying to strengthen their strategic autonomy amid the Russian threat and more complicated relations with the US.
FCAS was not just a combat aircraft, but an integrated system that was supposed to include drones, sensors, and a "battle cloud" capable of connecting all components of an air operation in real time.
However, Berlin insists that the digital and interconnection part of the project must be preserved.
Germany aims to save the digital components of the program
The German government stated that the "true core" of FCAS must continue in the form of a European system of systems, capable of connecting aircraft, drones, and other military platforms in a common network.
Berlin announced that defense ministers from France and Germany will present a new industrial cooperation plan in the defense sector in July, focusing on projects deemed "realistic and relevant."
However, it remains unclear what Airbus will do after the collapse of FCAS. A potential association with the GCAP program, developed by Italy, the UK, and Japan, seems challenging as the project is already at an advanced stage. Another option could be collaboration with the Swedish company Saab, but experts believe this option also has limited chances of materializing.