German, French leaders unable to resolve FCAS fighter jet dispute, sources say

BERLIN, June 8 - German Chancellor Friedrich Merz and French President Emmanuel Macron have concluded that the companies involved in building a joint fighter jet are unable to reach an agreement, two German government officials told Reuters on Monday.

Both leaders agreed that the countries involved in the project known as Future Combat Air System, or FCAS, would continue to develop a related drone system and data network, the sources added.

Macron's office did not immediately return a request for comment.

Failure to reach an agreement on the €100-billion ($116 billion) project underscores the struggles Europe has faced in rebuilding its military capacity after decades of underinvestment.

German government sources said Merz and Macron had discussed the decision to announce an end to the troubled project on Friday on the sidelines of the EU-Western Balkans summit in Montenegro.

Both had previously tried in vain to persuade European aerospace group Airbus, which represents Germany and Spain, and France's Dassault Aviation to reach an agreement.

A European source briefed on the matter said the two sides were moving towards a face-saving solution in which the remaining systems outside the core fighter, such as the "combat cloud" of highly secure links, would maintain the same name: Future Combat Air System or FCAS.

With French elections looming next year, the formula is designed to address the reluctance of Macron to sacrifice the landmark FCAS project, which he launched with former German Chancellor Angela Merkel in 2017, the source said.

The project, which centres on a core fighter jet supported by drones and linked by a classified "combat cloud", had been in doubt for months as the two sides have wrangled over specifications and control. REUTERS