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Germany May Exit European Fighter Jet Program

Bloomberg Markets •
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Germany is contemplating excluding France from the Future Combat Air System (FCAS) program, a multinational effort to develop a next-generation fighter jet. Prolonged disagreements over workshare and project governance have led Berlin to explore alternatives, including potential collaboration with the United Kingdom or Sweden, or continuing with Spain alone.

The FCAS, valued at over €100 billion, aims to field a "sixth-generation" combat aircraft by 2040, succeeding current platforms like the Rafale and Eurofighter. Tensions have escalated as France reportedly seeks approximately 80% of the workshare for the demonstrator phase, a demand Germany views as a threat to its industrial participation and potentially marginalizing German firms.

German Chancellor Friedrich Merz has urged adherence to the original tripartite agreement, warning that workshare changes could delay the demonstrator phase. While France remains officially committed, some French defense industry figures are pushing for stronger leadership. The future of the project is expected to be clarified by the end of 2025.