Germany and France scrap joint fighter jet project amid industrial deadlock

The failure to reach an agreement on the €100 billion ($116 billion) project highlights Europe's struggles to rebuild military capacity after decades of underinvestment. The project, which centers on a core fighter jet supported by drones and linked by a classified 'combat cloud,' has been in doubt for months.

A European source briefed on the matter indicated that the sides are moving towards a face-saving solution where remaining systems outside the core fighter, such as the 'combat cloud,' would retain the FCAS name. This approach is designed to address President Macron's reluctance to sacrifice the landmark project, launched with former German Chancellor Angela Merkel in 2017.

Both leaders had tried for months to salvage the project and overcome differences between the main industry partners, European aerospace group Airbus, representing Germany and Spain, and France's Dassault Aviation. Merz had openly questioned the need for a manned sixth-generation fighter jet for Germany's air force, noting it did not require a nuclear-capable jet that could land on an aircraft carrier.