France May Exit Franco-German MGCS Tank Project, Warns Rheinmetall CEO
Potential Setback for European Defense Cooperation
FRANKFURT, June 13 (Reuters) - France could exit the Franco-German tank project MGCS, the CEO of Rheinmetall, one of the initiative's shareholders, was quoted as saying on Saturday, in what could be the latest blow to defence cooperation on the continent.
Rheinmetall CEO Comments on MGCS Project
"There is always a risk, but nothing has been decided yet," Armin Papperger told Welt am Sonntag, commenting about the project in which Franco-German tank maker KNDS and French group Thales also hold stakes.
Budget Concerns and Potential Cuts
• Papperger said that France was considering drastic cuts to the project's budget, adding talks included the idea to reduce spending to "less than half" of previous plans.
Financial Status of MGCS Project
• So far, the shareholding companies have received just €25 million ($29 million) since the project's inception, Papperger added.
Background and Recent Developments
Origins of the MGCS Project
• Berlin and Paris agreed in 2017 to work on the Franco-German Main Ground Combat System (MGCS) tank to succeed the German Leopard 2 and the French Leclerc, but the project has been hit with delays.
Recent Tensions and Related Defense Projects
Scrapping of the FCAS Joint Fighter Project
• Papperger's comments come days after Germany and France scrapped the FCAS joint fighter project while KNDS's governance structure has also created tensions between the two countries, sources have said.($1 = 0.8645 euros)
Reporting Credits
(Reporting by Christoph Steitz; Editing by Emelia Sithole-Matarise)
