This Week in Defense: FY27 Budget Advances, Reconciliation 'Not An Option'

Research evidence excerpt

This Week in Defense: FY27 Budget Advances, Reconciliation 'Not An Option'

nd Rafale starting in 2040, has been

terminated following the breakdown of industrial negotiations between Dassault and Airbus

over workshare, project leadership, and aircraft design. The German and French governments

have agreed to end the flagship joint fighter effort, with reports indicating the final decision

came from the German side.

it matters: FCAS termination removes a long-dated but large-scale demand signal ◦Why

for European next-generation combat drone and autonomous systems development,

reinforcing the structural advantage of U.S.-based programs and contractors already at

or near program-of-record status. More broadly, FCAS's collapse underscores execution

risk in multi-sovereign defense programs and reinforces the competitive moat of

domestically funded U.S. drone and crewed-uncrewed teaming programs already in

development. This could end up being a boon for Group 5 UAS platforms in the future

depending on how European states choose to respond.

• Germany Pairs P-8A Poseidon with MQ-9B Sea Guardian for Sub-Hunting. Germany

plans to deploy manned-unmanned teaming using its P-8A Poseidon maritime patrol

aircraft alongside MQ-9B Sea Guardian drones to track Russian submarine activity in

northern European waters, a senior German naval official said at the Berlin Airshow.

Germany contracted General Atomics Aeronautical Systems in January for eight MQ-9B Sea

Guardians, with first deliveries scheduled for 2028 and full fleet delivery by 2030. General

Atomics President Dave Alexander confirmed Germany is the first country to officially contract

the MQ-9B with an anti-submarine warfare (ASW) capability.

it matters: This program has no direct revenue connection to our coverage, ◦Why