What You Need to Know in A&D — FCAS Fighter Scrapped

Research evidence excerpt

What You Need to Know in A&D — FCAS Fighter Scrapped

EUROPE | Aerospace & Defense Electronics EquityJuneResearch9, 2026

What You Need to Know in A&D — FCAS Fighter Airbus model Leonardo • •

Avio model modelScrapped •

BAE Systems MTU model • •

RENK modelIn this document, we present the key news impacting the European A&D sector. model •

Today, we explore: Germany and France drop joint fighter project. • CSG model • Rheinmetall

Dassault model •

Aviation model Rolls-Royce •European defense: Germany and France drop joint fighter project Hensoldt model modelGermany and France have agreed to scrap the joint fighter jet element of the FCAS project, • Safran modelofficials announced on Monday evening. German Chancellor Friedrich Merz and French President •

Thales modelEmmanuel Macron discussed the project last week during a meeting in Montenegro, and concluded •

there was no prospect of breaking the deadlock. Macron's office said that both regretted that the

main industry partners, Airbus (Hold) and Dassault Aviation (Buy), had not reached an agreement.

Mr Merz has instead proposed that Germany, France, and Spain, continue working together on the

"combat cloud", the software architecture desiged to connect aircraft, sensors, radars, drones, and

satellites in real time. The cloud is already one of the pillars of the FCAS program.

While this is clearly a negative for all partners involved, it has been well reported that a deal was unlikely

to be reached between France and Germany for some time. In the fallout from the fighter pillar of the

program collapsing, we continue to favour the French partners within Team Rafale (Dassault Aviation

(Buy), Thales (Buy), Safran (Hold)) over the German participants (MTU Aero (Buy), Hensoldt (Buy)).