Finance
Merz Says He Will Fight for Future of Franco-German Fighter Jet Project
Published by Global Banking & Finance Review®
Posted on March 27, 2026
2 min readLast updated: March 27, 2026
Add as preferred source on GoogleQuick Summary
German Chancellor Friedrich Merz pledged on March 27, 2026, to fight until the last moment to salvage the embattled €100 billion Future Combat Air System (FCAS) fighter jet programme, while planning a government stake purchase in tank maker KNDS to secure strategic influence.
Merz Pledges Support to Secure Future of Franco-German Fighter Jet Project
German Commitment to European Defence Collaboration
BERLIN, March 27 (Reuters) - German Chancellor Friedrich Merz said on Friday he is doing everything in his power to salvage the crisis-hit FCAS fighter jet programme with France and Spain and to generally foster greater cooperation within Europe's defence industry.
Importance of the Defence Sector for German Industry
"The future of German industry is now at stake, and this industry is heavily dependent on the defence sector," Merz told a conference hosted by the FAZ newspaper, adding that he would "fight until the very last moment" for joint European projects like FCAS.
Efforts to Secure the FCAS Project
The chancellor said two moderators - one from France, one from Germany - have been appointed to come up with ways to secure the future of the project by the end of next month.
Challenges Facing the FCAS Programme
The plans to develop a futuristic air combat system are hanging by a thread amid a public dispute over control between France's Dassault Aviation and Airbus, which represents Germany and Spain in the 100-billion-euro project.
German Government's Strategic Moves in Defence Industry
Acquisition of Stake in KNDS
The chancellor also said that the German government would purchase a stake in KNDS, the Franco-German maker of Leopard tanks, as it seeks to preserve influence after a planned listing later this year valuing the company at 20-25 billion euros.
Details of the KNDS Stake Purchase
Reuters reported in February that Berlin was preparing to buy a minority stake in KNDS of at least 25.1%, citing people familiar with the matter.
(Reporting by Rachel More and Alexander Huebner; Editing by Chizu Nomiyama )
Key Takeaways
- •Merz is intensifying efforts to salvage the FCAS project amid deep Franco‑German disputes over industrial control and divergent military requirements (euronews.com)
- •The FCAS programme—valued near €100 billion—faces standstill: France’s Dassault and Germany’s Airbus are no longer collaborating effectively, raising doubts over the project’s viability by the 2040 target (lemonde.fr)
- •To preserve German influence in European defence, the government plans to acquire a minority stake in KNDS, the Franco‑German tank maker, ahead of its listing, estimated at €20‑25 billion (defence-industry.eu)
References
Frequently Asked Questions about Merz says he will fight for future of Franco-German fighter jet project
1What is the FCAS fighter jet project?
The FCAS fighter jet project is a joint initiative between France, Germany, and Spain to develop a next-generation air combat system for Europe.
2Why is the FCAS project facing a crisis?
The FCAS project is in crisis due to a public dispute over control between Dassault Aviation of France and Airbus, representing Germany and Spain.
3How is Germany responding to the FCAS project's challenges?
Chancellor Merz stated Germany will fight to preserve the project and has appointed moderators from both countries to find a solution.
4What is KNDS, and why is the German government buying a stake?
KNDS is a Franco-German manufacturer of Leopard tanks. Germany plans to buy a significant stake to retain influence after the company's public listing.
5What role does the defence sector play in the German industry?
The defence sector is crucial for Germany, with the chancellor noting the industry's future is heavily dependent on it.
