Berlin and Paris discuss scrapping plan to jointly build fighter jet, FT says

By Sabine Siebold

BERLIN (Reuters) -Germany and France are discussing downsizing their 100-billion-euro ($116 billion) flagship defence project by dropping plans to jointly build a fighter jet and focusing on a command and control system, the Financial Times reported on Monday.

France's Dassault, Airbus and Indra - the latter two representing Germany and Spain respectively - are involved in the Future Combat Air System (FCAS) to replace France's Rafale and German and Spanish Eurofighters with a next-generation fighter from 2040.

Airbus and Dassault have each led some parts of the FCAS programme but disagree over how to build the jet, with differences over the division of labour, choice of suppliers and control of the jet’s design, the FT said.

Airbus declined comment on the report. Germany's defence ministry did not immediately respond to a request for comment.

Dropping plans to jointly build a new fighter aircraft could deal a blow to European Union efforts to increase defence cooperation following Russia's invasion of Ukrainein 2022.

The German and French defence ministers were expected to discuss the future of FCAS at talks in Paris on Monday.

German Chancellor Friedrich Merz and French President Emmanuel Macron aim to decide by year-end whether to proceed with the project or pursue an alternative approach.

PROJECT PLAGUED BY DELAYS AND INFIGHTING

The FT quoted officials in France and Germany as saying that dropping plans to build a new fighter jet would enable the project to focus on developing a combat cloud control system that would link fighter jets and their pilots to sensors, radars, drones and land- and sea-based command systems.

Initiated in 2017 as a model for European defence collaboration, the project has been plagued by delays and infighting over workshare and intellectual property rights between France and Germany and their national industries.

Berlin has blamed Dassault for blocking the programme's next phase by seeking sole leadership of the project. Sources said France had demanded a workshare of some 80% but Dassault denied this.

Options under discussion include fully terminating the project or significantly scaling it down by eliminating important elements including the development of the joint fighter jet, according to sources familiar with the matter.

($1 = 0.8621 euros)

(Reporting by Sabine Siebold in Berlin, Disha Mishra in Bengaluru and Ludwig Burger in Frankfurt; Editing by Himani Sarkar, Friederike Heine and Timothy Heritage)