The EU’s €100 billion next-gen fighter is dead: Here’s why

The long-delayed €100 billion ($116 billion) project to develop a fully European next-generation fighter jet for NATO members has been formally abandoned.

Despite citing the need to counter a perceived threat from Russia and strengthen Europe’s military, France and Germany have failed to overcome years of industrial and political disagreements over a project intended to reduce Europe’s reliance on US-made military hardware.

Was the cancellation of the project a surprise?

Not really. The fate of the Future Combat Air System, or FCAS, had been uncertain for months.

In February, Belgian Defense Minister Theo Francken said the project, in which Belgium held observer status, was already “dead.”

On Monday, media outlets reported that the industrial deadlock surrounding the proposed replacement for France’s Rafale jets, the Eurofighters used by Germany and Spain, and potentially US-made F-35s, had finally ended with the manned fighter component being dropped. Official confirmations soon followed.

“It was an ambitious, large European project that has now shattered against reality,” German Defense Minister Boris Pistorius said. “In the end, one must distinguish between head and heart in this matter.”

In other words, FCAS has joined the growing list of European defense initiatives that failed to meet their original expectations.

What was FCAS?

FCAS was launched in 2017 by French President Emmanuel Macron and then-German Chancellor Angela Merkel. Its stated goal was to deliver a sixth-generation advanced combat aircraft sometime after 2040. At the time, a source at a major European defense firm said the proposed jet would have to “have capabilities to match or exceed that of the F-35” to win over potential buyers and justify the investment.

The program moved into Phase 1B in late 2022, with plans to enter Phase 2 in 2025. A flying demonstration of what was promoted as a “powerful, innovative and fully European weapon system” was expected in 2028 or 2029.

The aircraft was meant to operate alongside new drones and a “combat cloud” information network. Participants now hope those elements can still be preserved and folded into future national aircraft programs.

“The actual core of FCAS is to be continued as a European system,” a French official told Agence France Presse, suggesting that parts of the project may still produce some return on the money already spent.

Given Macron’s personal role in launching FCAS, the collapse of its central component is being seen as a major setback for his political legacy. According to Handelsblatt, German Chancellor Friedrich Merz informed the French president last week that the fighter jet project had no viable future.

Why did FCAS stall?

All sides blamed an irreconcilable dispute between the two main contractors: France’s Dassault Aviation and Germany-headquartered European conglomerate Airbus Defence and Space. The disagreement centered on workshare and governance.

Both Berlin and Paris insisted that the industrial dispute did not reflect the broader state of relations between the two countries. Macron and Merz invited mediators in March, but those efforts reportedly collapsed the following month, leaving the final decision to their defense ministries.

Why did the contractors quarrel?

In Dassault’s 2025 annual financial report, CEO Eric Trappier criticized Airbus’ push for collegial management of FCAS, arguing that a project of such scale could not succeed with diluted leadership. He said the French company possessed the unique expertise needed to deliver the aircraft.

“Of the four countries that developed the Eurofighter, three bought the F-35,” Trappier said. “That’s what decline looks like.”

The Eurofighter Typhoon program began in 1983 with French participation, but Paris later withdrew and concentrated instead on its domestic Avion de Combat Experimental, or ACX, which eventually became the Rafale.

One of the major points of contention with the Eurofighter was incompatible national requirements. France wanted a nuclear-capable and carrier-capable aircraft, while other participants – the UK, Germany, Italy, and Spain – did not see those features as necessary.

That same divide ultimately undermined the FCAS program.

What is the future of European-made NATO jets?

Germany and France now plan to pursue their own aircraft programs. Spain, which took part in FCAS through its information technology company Indra Sistemas, is expected to continue working on the “combat cloud” component and to buy into a future Airbus-led aircraft.

Germany’s fighter jet effort could also involve Sweden’s Saab, the maker of the Gripen fighter jet. Berlin reportedly views the Swedish firm as far easier to work with than Dassault.

Germany needs foreign partners, as it has not independently developed a fighter jet since World War II. The only exception is the experimental EWR VJ 101 vertical takeoff aircraft, which never progressed beyond the prototype stage.