Germany’s defense ministry said in a statement that an industrial deal had been reached after intense negotiations, confirming an earlier Reuters report that the three countries and their respective industries had reached an agreement. The ministry said it was agreed at the highest government level that a cooperative approach would be pursued on an equal basis in the project, which is under overall French responsibility. “The political agreement on FCAS is a big step and – especially in these times – an important sign of the excellent Franco-German-Spanish cooperation,” said German Defense Minister Christine Lambrecht. “It strengthens Europe’s military capabilities and secures important know-how not only for our own, but also for European industry.” Previously, sources said the next phase of development for the Future Combat Air System (FCAS) was expected to cost around 3.5 billion euros, to be shared equally by all three countries. France’s Dassault ( AM.PA ), Airbus ( AIR.PA ) and Indra ( IDR.MC ) – the latter two representing Germany and Spain, respectively – are involved in the plan to launch replacements for France’s Rafale and German and Spanish Eurofighters from 2040. “Now, a number of official steps must be taken in the respective countries to allow for the speedy signature of the contract, which we will have to comply with,” Airbus said in emailed comments. French President Emmanuel Macron and then German Chancellor Angela Merkel first announced plans in July 2017 for FCAS, which would include a fighter jet and a range of related weapons, including drones. In recent times, the project – originally intended to unite Europeans following the migration crisis and Britain’s decision to leave the European Union – has been a source of tension between the two countries. Last month, Macron canceled a joint Franco-German ministerial meeting over disagreements with Berlin over a wide range of issues, including defense and energy projects. Both sides struggled for more than a year to agree on the next stage of FCAS development, although the French and German governments have broadly agreed on the project. Some sources saw Dassault as responsible, as the company had refused to back down in a long-running dispute over intellectual property rights. Other sources accused Airbus of pushing for a larger share of the Dassault-led project’s work, insisting it should be given an “equal footing” with the French company. ($1 = 0.9675 euros) Sabine Siebold writes. Edited by Kirsti Knolle, Christoph Steitz, Louise Heavens and Emelia Sithole-Matarise Our Standards: The Thomson Reuters Trust Principles.
