France, Germany set end-April deadline for elusive deal on new combat jet

Earlier this month, the European companies involved in the project concluded talks with an agreement on how to share work on the Future Combat Air System (FCAS), an array of manned and unmanned warplanes backed by France, Germany and Spain. But there are still differences over engine development and intellectual property rights.

France and Germany's defence ministers on Tuesday set a deadline of end-April to broker a deal over the future of a next-generation combat jet, Europe's largest defence project. Earlier this month, the European companies involved in the project concluded talks with an agreement on how to share work on the Future Combat Air System (FCAS), an array of manned and unmanned warplanes backed by France, Germany and Spain.

But there are still differences over engine development and intellectual property rights. "We both think the same thing: we need a deal by the end of April and I am confident we can get there together," French Armed Forces Minister Florence Parly told a joint news conference after talks in Paris.

Parly described the political negotiations on the flagship European defence project as frank. German Defence Minister Annegret Kramp-Karrenbauer said the two sides were working "almost day and night" to find an agreement. There were "very tangible interests" at stake, Kramp-Karrenbauer added. She cited intellectual property rights as one area of disagreement.

The FCAS is designed to replace the Eurofighter, developed by Airbus, Britain's BAE Systems and Italy's Leonardo, and the Rafale made by France's Dassault, from 2040. The industrial agreement on the share of work saw Dassault Aviation win leadership of the fighter plane while Airbus, representing Germany and Spain, has a two-thirds overall share of the project.

Defence procurement is a sensitive topic in Germany, especially in an election year. The vote means the project faces tight deadlines in a country where the powerful parliamentary budget committee has a decisive say.