Germany’s new aviation strategy signals the government will lead a next‑generation fighter‑jet programme after exiting a €100 bn joint effort with France. The move follows a bitter dispute between Dassault Aviation and Airbus’s German defence arm. Berlin now pledges to secure a sixth‑generation aircraft, either head‑on or as a major partner in the European defence arena.

The strategy also earmarks more than €750 bn for army upgrades by 2030, positioning Berlin as Europe’s biggest rearmament effort since the Cold War. Merz’s administration stresses that German industry must command a share in cost and quality, ensuring the aerospace sector keeps pace with its €750 bn spend into the defence industry that will drive future.

With FCAS dissolved, Germany faces limited options: join the Global Air Combat Programme of the UK, Italy and Japan; partner with Sweden’s Saab; or launch an Airbus‑led domestic project. Spain, a former FCAS member, could also align. Each path demands careful assessment of technical fit and fiscal contribution to ensure industry sustainability and defense readiness.

The decision signals a shift toward greater industrial sovereignty, with Berlin insisting all manufacturing steps, from design to maintenance, remain under German control. Investors will watch how the €750 bn spend translates into contracts for Airbus, MTU Aero Engines and Hensoldt. The outcome will determine Germany’s standing for the broader European security.