SECURITY: FT-German-Led Alliance Looks To Replace Doomed Franco-German FCAS Jets

Following the collapse of the Franco-German initiative to develop a next-generation fighter jet, the FT reports that a German-led alliance is planning to create an alternative. In a major blow to French President Emmanuel Macron, who had long advocated for the EUR100bln Future Combat Air System (FCAS), Politico reported on 8 June a German gov't official stating "...Macron and the Federal Chancellor [Friedrich Merz] have come to the shared conclusion that the companies involved will not be able to come together to build a joint fighter jet. [...] Merz has therefore advised President Macron not to pursue the development of a joint fighter jet any further".

• Wires reporting comments from German Defence Minister Boris Pistorius this morning, stating that Germany is "seeking new partners" after the collapse of the FCAS plan. Claims Germany has sought a new partner for "months".
• Industrial disputes between France and Germany, and prevarication from politicians in Berlin and Paris, were seen as major hindrances to FCAS.
• Given the technological requirements of the development of a new fighter jet system, the pressure put on gov't budgets by such developments is extremely high, but also long-term in nature. The FT report claims that the new alliance would be German-led but could include partnerships with Spain and Sweden, with a broader partnership splitting the cost load between various national budgets.
• Despite European nations claiming that rearmament to deal with the Russian threat is critical, the collapse of FCAS could damage political relations between the EU's two largest economies.