The disagreement centres on theFCAS(Future Combat Air System), a 100 billion programme developed with Spain to build a next-generation fighter aircraft, drones, and a shared digital combat network.
The project was already under strain due to disputes between FrancesDassault Aviationand the Franco-German aerospace partnership involvingAirbus SE, which represents both Germany and Spain in the programme.
German Defence Minister Boris Pistorius said he expects leaders to make a decision this week, stressing that the final call rests with heads of state, including Germany's Chancellor Friedrich Merz and France's PresidentEmmanuel Macron, who are attending theEU Council summit in Cyprus on 23-24 April.
However, French defence minister Catherine Vautrin indicated that there would be a delay, saying mediators had requested more time beyond an earlier deadline of 18 April, extending discussions by around 10 more days.
German newspaper Handelsblattreported that Germany and France had tasked the former head of tank manufacturer KMW (nowKNDS,) Frank Haun, and Laurent Collet-Billon, former head of France's defence procurement agencyDGAat the end of March to find ways of salvaging the project.
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Their talks with the industrial players are focused on three axes: intellectual property, work share, and export rights.
But according to Handelsblatt, the two negotiators could not reach an agreement and even produced two different reports. Investment advisorsDelfineoadded thatthe CEOs of Airbus Defence & Space and Dassault Aviation "haven't spoken to each other for months".
While the programme officially aims to develop a fully integrated air combat system, insiders suggest a possible compromise could see cooperation continue on drones and digital systems, while the core fighter jet component may be scaled back or restructured.
That potential shift would be politically sensitive for Paris, where the project is seen as a flagship of European defence integration.
The wider industrial ecosystem also includes key players such asSafran SAand US-basedRTX Corporation, which are linked to various technology components in the broader aerospace sector.
(With newswires)
Originally published on RFI
