Germany, France, Spain to Move Ahead with €100 Billion Fighter Jet Project

Germany, France and Spain agreed to go ahead with the next phase of the FCAS fighter jet programme. The project is the largest defense initiative in Europe with an estimated cost of more than €100 billion. German defense ministry said in a statement that an industrial agreement was reached after intense negotiations. The ministry said it was agreed at the highest government level that a cooperative approach on an equal footing would be pursued in the project, which is currently under overall French responsibility.

Spanish ministry of defense said the government would spend €2.5 billion on the project, with €525 million coming in 2023. The ministry said the government approved the spending.

“The political agreement on FCAS is a great step and – especially in these times – an important sign of the excellent Franco-German-Spanish cooperation,” German Defense Minister Lambrecht said.

“It strengthens Europe’s military capabilities and secures important know-how not only for our, but also for the European industry.”

Previously it was stated that the next development phase for the Future Combat Air System (FCAS) was expected to cost about €3.5 billion, to be shared equally by the three partners.

France’s Dassault, Airbus and Spain’s Indra are the three companies designated to start replacing France’s Rafale and Germany and Spain’s Eurofighter jets from 2040.

“Now, a number of formal steps in the respective countries have to be taken in order to allow a speedy contract signature which we will have to adhere to,” Airbus said.

The plans were first announced by French President Macron and then German Chancellor Merkel in July 2017 for FCAS, which will include a fighter jet and a range of associated weapons, including drones.

However, the project has become a source of tension between the two countries lately. Last month, Macron canceled a Franco-German ministerial meeting over a wide range of disagreements including defense and energy projects.

Both sides had been struggling for more than a year to agree the next stage of FCAS’s development, although the French and German government broadly agreed on the project.

Some of the delay had come from disagreements between companies, with Dassault refusing to budge in a long-running row over intellectual property rights. Meanwhile, Airbus had asked for a bigger workshare in the project and an equal footing with Dassault.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now


Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today


Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Canada’s Gold Lion Sets Sights on Morocco Manganese Project

Canadian mining company Gold Lion announced on Thursday that it signed a letter of intent to acquire a 50% interest in a mining license from Ermazon SARL to develop and explore manganese in Morocco. Manganese is used to produce electric vehicle (EV) batteries and other renewable energy applications such as electricity grid storage. The demand for the battery metal is expected to grow in line with the demand growth in EVs. 

Iran and Venezuela Reach Cooperation Agreement to Improve Bilateral Relations

Iran and Venezuela made a 20-year cooperation deal to strengthen bilateral relations to help them fend off U.S. sanctions and political pressure. The agreement was signed Maduro’s visit to Tehran on 10-11 June, his first trip since Iran’s President Raisi took office last year. The deal will include cooperation on politics, culture and economics, as well as oil and petrochemical industries.

Angola Set to Start Trade Negotiations With the EU

Angola is set to start trade negotiations with the European Union this year after the bloc and African partners accepted a request from the oil rich nation to join a regional trade bloc. The EU approved the start of negotiations in late July, just before Angola holds general elections next week. While the formal negotiations is on the horizon, a date is still to be agreed with Angola. The EU expects the talks to start in fourth quarter of this year. 

Stay informed

error: This content is protected !!