Key facts
- Germany and France have ended their joint Future Combat Air System (FCAS) fighter jet project.
- The FCAS project was valued at €100 billion ($116 billion).
- The FCAS project will now focus on drone systems and a 'combat cloud'.
- German Chancellor Friedrich Merz stated the EU has 450 million consumers.
- The EU has 100 million more consumers than the US.
- Germany's Federal Employment Agency (BA) anticipates a deficit exceeding 8 billion euros in 2026.
- The BA's projected deficit is more than double the previously planned shortfall.
- Far-right parties made gains in local elections in eastern Germany.
- Chancellor Merz is traveling to London to discuss the Ukraine war.
- Russian President Putin has rejected face-to-face talks.
Germany and France have officially ended their joint fighter jet development project, known as the Future Combat Air System (FCAS), following an inability for industry partners to agree on specifications and control. This significant €100 billion ($116 billion) initiative will now shift its focus towards developing drone systems and a 'combat cloud' capability. The deadlock between industrial partners proved insurmountable, leading to the project's termination in its original form.
In other developments, German Chancellor Friedrich Merz emphasized the European Union's substantial economic power, noting that the bloc possesses 450 million consumers, which is 100 million more than the United States. Merz stressed that the EU should not underestimate its own economic significance.
Meanwhile, Germany's Federal Employment Agency (BA) is facing a projected deficit of over 8 billion euros for the year 2026. This figure is more than double the initially planned shortfall and is attributed to a deteriorating labor market and a revised, less optimistic economic outlook. The agency has indicated that it may need to seek a government loan if current contribution rates are maintained.
Furthermore, local elections held in eastern Germany have shown gains for far-right parties. These results are being closely watched as a potential indicator for the state elections scheduled for September. In parallel, Chancellor Merz is traveling to London to engage in discussions regarding the ongoing war in Ukraine, a trip occurring as Russian President Putin has rejected the possibility of face-to-face talks.