Germany and France Indefinitely Postpone Decision on FCAS Fighter Jet Project Amid Industrial Disputes

FCAS Decision Halted Indefinitely

Germany and France have announced an indefinite postponement of the final decision regarding the ambitious Future Combat Air System (FCAS) fighter jet project. A German chancellery spokesman confirmed on Wednesday, December 31, 2025, that a resolution on the multi-billion-euro program, initially anticipated by year-end, could not be reached. The primary reasons cited for this significant delay are ongoing disputes between key aerospace contractors and a packed Franco-German foreign and security policy agenda.

The FCAS program, envisioned as Europe's largest and most expensive defense undertaking, aims to develop a next-generation 'system of systems' that includes a manned fighter jet, unmanned remote carriers (drones), and a 'combat cloud' for integrated data sharing. This advanced air combat system is intended to replace France's Rafale and Germany and Spain's Eurofighter fleets starting around 2040.

Industrial Stalemate Between Aerospace Giants

At the heart of the postponement are unresolved tensions and disagreements over industrial shares and leadership between the project's main contractors: France's Dassault Aviation and Airbus, which represents German and Spanish interests. Spain's Indra Sistemas is also a significant partner in the program.

Sources indicate that the disputes revolve around work allocation and decision-making authority. Éric Trappier, CEO of Dassault Aviation, has consistently asserted that his company should hold the 'prime contractor' or 'architect' role for the New Generation Fighter (NGF) component, leveraging its extensive expertise in fighter jet design. Conversely, Airbus has emphasized the need for a balanced governance structure, ensuring no single partner dominates the others. Reports have also circulated about Dassault potentially seeking up to 80% of the work, a claim denied by the French company, yet contributing to the persistent friction. Concerns over intellectual property and a potential transfer of technology from France to Germany have also fueled the disagreements.

Political and Strategic Implications

A German government spokesperson stated that the 'comprehensive German-French agenda on foreign and security policy issues' had prevented German Chancellor Friedrich Merz and French President Emmanuel Macron from addressing the joint fighter jet issue at the highest level. No new timeline for a decision has been provided, leaving the future of the multi-billion-euro project uncertain.

The indefinite delay highlights the inherent complexities in aligning strategic priorities, budgetary commitments, and industrial interests within major multinational defense programs. The ongoing stalemate has led some officials and lawmakers to suggest alternative paths. These include France potentially developing its own fighter jet, while Germany and Spain explore new partnerships or consider joining the rival Global Combat Air Program (GCAP), a venture involving the United Kingdom, Italy, and Japan.

Program Background and Future Outlook

The FCAS program was initiated in 2017 by France and Germany, with Spain joining in 2019. Belgium became an observer in June 2023 and a full partner in May 2024. Phase 1B contracts, focusing on demonstrator development and technology maturation, were signed in December 2022. A test flight of a demonstrator is anticipated between 2027 and 2029, with entry into service projected around 2040.

Despite the current setback, the partner nations have previously reaffirmed their commitment to the program. However, the latest postponement underscores the significant hurdles that remain in reconciling the industrial and political ambitions of the participating countries. The lack of a new decision date leaves the future trajectory of this critical European defense project in limbo.