Rs 10.3 lakh crore: What is this ambitious European fighter jet programme?

Europe is embarking on its most ambitious and expensive defence project to date — the Future Combat Air System (FCAS), a joint programme spearheaded by Germany, France, and Spain.

Envisioned as a next-generation air combat system that combines a sixth-generation fighter aircraft, drone swarms, and a digital combat network, FCAS carries an estimated price tag of more than €100 billion ($117 billion).

The initiative is designed to strengthen European defence autonomy and reduce reliance on American-made aircraft, particularly the US F-35 Lightning II.

But while the project’s scale and ambition promise to transform Europe’s aerial capabilities, disagreements between industry leaders and budgetary pressures have repeatedly stalled its progress.

With deadlines approaching, European leaders are under growing pressure to resolve disputes and keep FCAS on track for its planned 2040 debut.

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What we know about FCAS

The FCAS is not just a single aircraft but a comprehensive air combat system, conceived as a “system of systems.”

At its centre will be the Next Generation Fighter (NGF), a stealth-capable jet designed to replace the French Rafale and the German and Spanish Eurofighter Typhoon fleets.

Complementing the fighter will be unmanned remote carriers — drones capable of conducting reconnaissance, electronic warfare, and strike missions — all interconnected via a secure, AI-powered combat cloud.

The programme aims to create a networked force where piloted fighters and unmanned systems function as one cohesive unit, sharing data in real-time across multiple domains: air, land, sea, space, and cyberspace.

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This would enable multi-domain operations in contested environments, where speed, stealth, and electronic superiority are critical.

Technological ambitions for FCAS far surpass current fifth-generation fighters.

According to reports, the jet is expected to include:

• Advanced stealth features making it less visible to radar than existing platforms like the F-35.

• Supersonic performance with projected speeds exceeding Mach 2.5.

• Extended operational range, reaching 3,500 to 4,000 km without refuelling.

• Artificial intelligence integration, enabling pilots to direct coordinated operations with drone swarms.

• Next-generation weapons, potentially including hypersonic missiles and laser-based systems.

• A real-time digital network to integrate satellite, cyber, and land-based assets with aerial platforms.

A demonstrator aircraft is expected in the 2029-2030 timeframe, with full-scale production to begin around 2035-2037.

The target for operational deployment is set for 2040, aligning with the planned phase-out of current European fighter fleets.

Why FCAS has been stalling

Despite the clear technological vision, the FCAS programme has repeatedly been hindered by industrial rivalries and national interests.

The lead contractors — Dassault Aviation of France, and Airbus, representing German and Spanish interests — have been locked in disputes over workshare and decision-making authority.

France, through Dassault, insists on a leadership role in building the fighter jet, citing its expertise from the Rafale programme and its role in maintaining France’s nuclear deterrent.

Dassault CEO Eric Trappier has been outspoken about the risks of diluting French control. Speaking to French lawmakers earlier this year, he argued, “Some people were of the opinion that the weakening of this independence was not that damaging as the mutual dependence of the European partners would compensate for it… once you take this step, there’s no going back.”

Germany, on the other hand, has accused French industry of blocking progress by demanding too much control.

According to defence sources speaking to Reuters, France has asked for nearly 80 per cent of the workshare in FCAS — a figure Berlin considers unacceptable.

German Defence Minister Boris Pistorius stressed the need for compromise, “We will all pull together, and national interests will need to be put aside by one or the other or all of us. It is clear we are damned to succeed, we need this project.”

Airbus, which builds the Eurofighter Typhoon and has extensive expertise in European aerospace, has publicly signalled its dissatisfaction with being sidelined.

The company has highlighted its technological leadership through campaigns highlighting its contributions to advanced systems integration and digital aviation.

Spain, meanwhile, has reinforced its commitment to FCAS, aligning itself firmly with Germany and France.

Spanish Defence Minister Margarita Robles affirmed Madrid’s position, “This is an essential and fundamental project that we must invigorate, and we must invigorate it as much as possible… Spain’s commitment is total and this programme must continue.”

Spain has also moved away from considering US-made F-35s, narrowing its choices to either upgrading Eurofighters or pursuing FCAS — signalling a clear preference for European-made defence equipment.

How the bosses had to step in

Both French President Emmanuel Macron and German Chancellor Friedrich Merz have been drawn into negotiations to ensure the project’s survival. Following meetings in Berlin and Paris, the two leaders agreed to make a joint decision by the end of 2025 on the way forward.

Merz explained the urgency at a press briefing in Berlin, “That doesn’t make the thing easier but I hope we can find a solution as we need a new fighter jet in Europe. So I want us to reach a decision at the end of the year on how the project will proceed.”

Earlier, Pistorius and his Spanish counterpart Robles had also confirmed that defence ministers would meet in October this year to evaluate options for keeping the programme on track, aiming to resolve disputes before presenting a final proposal to leaders.

At stake is the launch of Phase 2 of the project — the construction of demonstrator aircraft — which had originally been scheduled for the end of this year.

Without resolution, the demonstrator timeline risks slipping further, raising doubts about the 2040 deployment target.

Pistorius pointed out that contracts must be respected, while changes can only be pursued through renegotiation, “The answer is rather simple: Contracts are struck to be adhered to… If there is a wish for changes, then these are only possible after fresh negotiations between the partners.”

He also warned against continued delays, “One thing is clear: This process must not carry on for ages… We need to gain speed now because the project does not allow for any further delays.”

Why Europe says it needs FCAS

The drive to build FCAS is underpinned by strategic necessity. Europe’s reliance on American defence systems — especially the F-35 — has raised concerns about autonomy.

While the F-35 remains the most widely adopted fifth-generation fighter globally, critics point out that Europe risks becoming dependent on US technology and supply chains if it does not invest in homegrown alternatives.

The FCAS programme is thus seen as a cornerstone of European defence independence, ensuring that the continent retains control over its most advanced combat capabilities.

It also represents a bid to keep pace with global competitors.

• The US is pushing ahead with its Next Generation Air Dominance (NGAD) programme, focused on combining manned and unmanned systems with cutting-edge stealth and AI integration.

• China continues to upgrade its J-20 Mighty Dragon, enhancing stealth and propulsion to remain competitive with American jets.

• Russia is working on new engines and systems for its Su-57 Felon, although progress has been slowed by sanctions and budgetary pressures.

• The UK, Italy, and Japan have teamed up for the Global Combat Air Programme (GCAP), a rival sixth-generation fighter project involving BAE Systems, Leonardo, and Mitsubishi Heavy Industries.

For Europe, FCAS is not just about matching the technology of the F-35, J-20, or Su-57 — it is about ensuring that European states can control their defence future, rather than relying exclusively on allies.

Will Europe’s ambitious FCAS programme succeed?

Although the programme has a clear strategic rationale, its future depends on whether political leaders can resolve industrial rivalries and whether the timeline can be maintained.

France’s domestic financial situation complicates matters further, with high debt levels and political instability raising doubts about long-term defence budgets.

Germany, by contrast, is in a stronger financial position, giving Berlin greater leverage in negotiations.

The Franco-German Defence and Security Council, usually a low-profile gathering, has become a key venue for debate, reflecting the high stakes involved.

While some French officials insist details will continue to be discussed in upcoming meetings, both governments have acknowledged that a decisive agreement is required this year to prevent further delays.

A French government official told Bloomberg that there was reason for optimism because both Merz and Macron understood the strategic importance of the project and were aware that there’s no alternative.

If successful, FCAS would become the most advanced fighter aircraft ever built, positioning Europe alongside the US, China, and other global powers in the race for air superiority.

Until then, the question remains open: Will delays and disagreements ground Europe’s most ambitious fighter jet project before it ever takes flight?

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With inputs from agencies