Berlin ended its €100bn bid to build a sixth‑generation fighter jet with France and Spain, citing stalled progress and leadership clashes between Dassault Aviation and Airbus Defence. The decision follows months of stalled negotiations and highlights the fragile state of European defence collaboration.

The termination signals a blow to the Future Combat Air System, which had relied on French Rafale expertise and German industrial ambition. Dassault’s reluctance to share technology and Germany’s lack of a domestic fighter heritage create a mismatch that regulators could not reconcile.

Investors will feel the impact through reduced growth prospects for Airbus Defence and Dassault. The collapse may force Europe to seek alternative suppliers, potentially boosting U.S. fighter sales to NATO allies. The setback confirms that European defence projects still depend heavily on national interests rather than a unified market.