Dassault Stalls €100bn France-German Fighter Jet Plan

France’s flagship next-generation fighter jet programme with Germany is facing renewed uncertainty, as Dassault Aviation resists pressure to compromise with Airbus, exposing deep tensions over control, sovereignty and Europe’s future defence ambitions, according to the Financial Times.

A Project Meant to Anchor Europe’s Defence Future

Announced in 2017 by French President Emmanuel Macron and then German Chancellor Angela Merkel, the Future Combat Air System (FCAS) was designed as Europe’s most ambitious defence project: a next-generation fighter jet integrated with drones, advanced weapons and communications systems.

The programme, valued at around €100bn, was intended to reduce Europe’s reliance on U.S. military hardware and strengthen strategic autonomy. Under the original framework, Dassault Aviation would lead development of the fighter jet itself, while Airbus’s German-based defence arm would oversee the broader system.

Dassault’s Grip on Fighter Design

That balance has since unravelled. Dassault and its chief executive Éric Trappier have refused to relinquish leadership over the fighter aircraft, drawing firm opposition from Airbus and the German government.

According to the Financial Times, the dispute echoes Dassault’s withdrawal from the Eurofighter programme in the 1980s, when it walked away over similar demands for design authority and manufacturing control.

“Ministers come and go, presidents come and go — and Dassault remains,” one industry executive told the FT, highlighting the firm’s enduring influence in French defence policy.

Macron Caught Between Industry and Europe

President Macron has repeatedly intervened in talks with German Chancellor Friedrich Merz to salvage the programme, warning that failure would undermine Europe’s credibility and defence cooperation.

Yet sources close to negotiations told the FT that Macron’s leverage over Dassault is limited, particularly with only around 15 months left in office.

Marwan Lahoud, a former Airbus executive, said the assumption that the French state can dictate terms is flawed.
“There is a give and take,” he told the FT. “It comes down to whether France expects defence companies to obey or to produce the best weapons systems possible.”

Germany Pushes Back

Berlin has accused Dassault of altering agreed terms and refusing to respect earlier governance structures. German officials have warned that if the stalemate continues, Germany could pursue its own next-generation aircraft or seek alternative partners.

Airbus, under chief executive Guillaume Faury, has adopted a more assertive stance, backed by the German government, further hardening positions on both sides.

A Company Built on Independence

Dassault’s resistance is rooted in its history. Founded by Marcel Dassault, the company has supplied France’s combat aircraft since the 1950s and retains a fiercely independent, engineer-led culture.

The Dassault family controls 66% of the publicly listed company and also owns the conservative newspaper Le Figaro. Its flagship Rafale fighter — used by France, Egypt, India and Qatar — has been battle-tested and remains central to France’s defence exports.

Trappier has openly stated that Dassault possesses the expertise to develop a next-generation jet independently if necessary.

“We are willing to work with partners,” he said, quoted by the FT, “but we don’t need to.”

Europe’s Defence Ambitions at Risk

French officials and industry insiders acknowledge that failure to resolve the FCAS impasse would damage Macron’s legacy as a champion of European defence cooperation.

While the French government remains Dassault’s primary customer, with all exports requiring state approval, insiders told the FT that forcing concessions on the company could weaken France’s long-term aerospace capabilities.

As Trappier put it in a statement to the Financial Times:
“France’s interest is not to twist Dassault Aviation’s arm, but to take pride in the company’s success.”