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France and Germany said on Monday they had agreed to abandon a joint fighter jet programme due to disagreements between the companies involved, in a blow to European efforts to boost defence cooperation.
The Future Combat Air System (FCAS) programme was launched in 2017 to replace France's Rafale jets and the Eurofighter planes used by Germany and Spain.
The project was seen as a key test of European efforts to work more closely on defence as they seek to present a united front in the face of a hostile Russia at a time of souring ties with the United States.
But the multi-billion-dollar programme was beset by disagreements between the firms involved -- France's Dassault Aviation and Airbus, which represents Germany and Spain.
A German government official told AFP that Chancellor Friedrich Merz and French President Emmanuel Macron had "reached the shared assessment that the companies will not be able to come together on building a joint combat aircraft.
"They acknowledge this reality."
The official however said other parts of the wide-ranging project will continue.
"The actual core of FCAS is to be continued as a European system," the official said, describing it as a "nervous system that networks aircraft, drones and other components into an integrated whole".
The French and German defence ministries are set to draw up a plan for defence cooperation "focused on a few realistic and relevant projects" at a forthcoming meeting, the official added.
- 'Inability of industrial partners' -
In Paris, a Elysee official confirmed Berlin's announcement.
Macron and Merz "held lengthy and frequent discussions on ways to advance this project, which is important for European defence," the official said, speaking on condition of anonymity.
"They each expressed regret over the inability of the industrial partners to reach an agreement on continuing the project," the official added.
The Elysee official said France believed that defence and security cooperation between the two countries was necessary.
"The French authorities will continue to encourage our companies and our armed forces to seek out the ways and means to pursue ambitious European projects that are consistent with our national security interests."
Cedric Perrin, chief of the foreign affairs and defence committee at the French Senate, said that Macron "was the only one who still believed in the survival of FCAS."
"The sooner the decision is made, the less time we will waste moving on to the next phase," he told AFP.
Airbus and Dassault were not immediately available for comment.
- Long-running disagreements -
The announcement comes despite calls for Europe to integrate its fragmented militaries more closely as geopolitical turmoil worsens.
Russia's war against Ukraine is in its fifth year, while European countries are increasingly worried about US security commitments to the continent under President Donald Trump.
There had been last-ditch efforts to salvage FCAS.
In March two mediators -- one from France and one from Germany -- were tasked with coming up with proposals to rescue the initiative.
But they were unable to do so, while the head of Dassault Aviation continued to insist that the firm could go it alone on the project and was not in favour of it being "co-managed".
The project's demise comes despite both Merz and Macron insisting publicly they were determined for it to succeed.
The German leader had said earlier this year that he would "do everything in my power, and fight until the very last moment, to get joint European projects off the ground here, and above all German-French projects".
Speaking in April after talks with Merz, Macron had denied the project was dead.
"We are continuing to move forward. Europe has never needed unity, greater independence and greater sovereignty more than it does now," he said.
G.Kucera--TPP