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Doubts grow over the future of the Franco-German FCAS fighter jet project

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Doubts are growing at Airbus and within German politics regarding the development of the new Franco-German European fighter jet, the “Future Combat Air System” (FCAS).

Airbus’s defense subsidiary, the Germany-based aircraft manufacturer expected to lead Europe’s largest defense project, and the French aircraft manufacturer Dassault have so far failed to reach an agreement.

Michael Schöllhorn, head of Airbus’s defense division, told Handelsblatt, “Germany and Europe need a next-generation air combat system, and Airbus is ready to develop such a system.”

Thomas Röwekamp, chairman of the CDU’s Bundestag defense committee, stated that “they cannot give up on this important technology, neither from a military nor an industrial policy perspective.”

However, negotiations between Airbus and Dassault have been stalled for months. This situation is already causing discontent among employees.

Airbus to the French: There are other attractive partnerships

Thomas Pretzl, chairman of the Airbus Defence and Space works council, told Handelsblatt that employees in Germany want clarity and that a decision on how to proceed with FCAS must be made soon.

For instance, Pretzl believes FCAS could continue without Dassault, saying, “Partnership is based on cooperation, not competition. There are more attractive and suitable partners in Europe.”

FCAS is planned to be a combination of fighter jets, unmanned aerial vehicles, and a data platform. The system aims not only to protect European airspace but also to free the continent from its technological dependence on America.

Development costs alone are expected to reach tens of billions of euros, but the system will not be operational before 2040. Critics argue this is too late and too expensive.

French Dassault wants the lion’s share of the profit

During his visit to Spain last Thursday, German Chancellor Friedrich Merz complained, “We are making no progress on this project. Things cannot continue as they are.”

Efforts will be made to find a solution by the end of the year “so that this project can truly be realized,” and according to industry sources, a decision could be made as early as October.

Spain is the third partner in the FCAS alliance, alongside France and Germany. The contracts stipulate that German and Spanish industries will receive more than half of the project’s added value.

Dassault is said to have recently demanded 80% of the added value for the aircraft, the main component of FCAS. Although Dassault denies this figure, CEO Eric Trappier reaffirms his company’s leading role in the aircraft’s development.

Merz and French President Emmanuel Macron had tasked their defense ministers with finding a solution to the deadlocked dispute. Ultimately, FCAS is also intended to be a symbol of effective European cooperation, similar to what Airbus achieved in civil aircraft production.

The fragile political situation in France has increased budget uncertainty

But the complex joint venture structure between the German Airbus divisions and the rival Dassault Group continues to fuel competition and mistrust.

In recent months, both sides have tended to drift apart. Additionally, France is politically paralyzed. Former French Defense Minister Sébastien Lecornu was appointed as the new French prime minister on September 9, but he has neither a majority in parliament nor a budget.

According to the project plan, a multi-billion-dollar development contract with a fixed industrial workshare must be approved this year to advance FCAS.

Meanwhile, an increasing number of European countries are purchasing the F-35 from the US company Lockheed Martin, which possesses stealth capabilities and superior digital features. Germany has also ordered three dozen F-35s, which can be equipped with American nuclear bombs in emergencies.

However, a disadvantage of the F-35s is that only the US has full control over the aircraft’s software. Another drawback is that Europe’s arms spending flows to US industry.

Germany sets its sights on the British-Italian-Japanese fighter jet project

On the other hand, other projects are underway in Europe. The “Global Combat Air Programme” (GCAP) is a joint project of BAE Systems from the UK, Leonardo from Italy, and Mitsubishi from Japan.

The intensive development phase for GCAP has not yet begun. However, at the DSEI defense fair in London in September, the three GCAP partners emphasized their willingness to accept other companies and partner countries.

The more partners there are, the lower the costs per country.

Experts advise Airbus to change course. Aviation expert Michael Santo says, “If the FCAS project continues to develop at its current pace, we will have an obsolete system by 2050. The French are setting a benchmark by demanding 80% of the project. The Germans seem bewildered and refer to the contracts.”

Arguing that it would be “economically irresponsible” to proceed with confidence in FCAS’s future, Santo claims, “Airbus Defence needs a strong partner, and BAE would not be a bad choice.”

Competition with Rafale unsettles the Germans

A partnership with British and Italian industry is possible. Airbus, BAE Systems, and Leonardo jointly build the Eurofighter. French industry withdrew from the project in the 1990s and developed the Rafale. Since then, the Eurofighter and Rafale have been competitors in the global market. This is another reason for the significant mistrust between Airbus and Dassault.

With BAE Systems and Leonardo, Airbus could benefit from established processes from Eurofighter production. The disadvantage here is that Airbus and German industry would be joining the consortium relatively late.

In fact, Germany has more financial leeway than the UK and Italy, as the debt brake for defense projects has been largely lifted. Works council chairman Pretzl says it is also possible to work with other partners in Europe, adding, “Theoretically, we could also develop our own fighter jet in Germany.”

A partnership with Saab is also possible

An independent development in Germany seems unlikely. Therefore, the option of the Swedish company Saab is also being discussed within German industry.

Saab produces the Gripen, a fighter jet comparable to the Eurofighter, which has also been delivered to South Africa, Brazil, and Thailand.

Germany has many connections to this project, and relations are considered excellent. Sweden has been a NATO member since 2024 and, like Germany, is significantly increasing its defense spending.

For example, the Airbus subsidiary MBDA supplies guided missiles for the Gripen’s armament. In March, the Swedish government announced it would also upgrade the Gripen for the latest version of the Taurus cruise missile.

In June, Helsing, a Munich-based defense startup specializing in artificial intelligence (AI), tested an air combat AI agent called Centaur on the Gripen.

This forms the basis of a future joint air combat system. Furthermore, since the Eurofighter and Gripen were developed in the 1990s, their updates and the introduction of a possible successor could be synchronized.

On Tuesday, Defense Minister Boris Pistorius will meet with his Swedish counterpart, Pal Jonson. According to Bloomberg, one of the topics on the agenda will be the modernization of the Eurofighter with Saab technology.

Dependence on Eurofighters may continue a while longer

The German Armed Forces’ modernized Eurofighters could operate with larger unmanned aerial vehicles, similar to the FCAS concept.

Airbus has formed a partnership with the US supplier Kratos and plans to begin deliveries to the German Armed Forces from 2029.

In addition, the Eurofighter may remain in production longer than previously thought. Spain and Italy have ordered new aircraft, and Germany intends to order at least 20 more in October. There are also export demands from Saudi Arabia, Qatar, and Turkey.

Airbus defense chief Schöllhorn says, “In the past, we struggled to maintain the necessary production rate of ten aircraft per year. Now, we are doubling this rate as we expect new orders.”

Berlin does not want to end the partnership with Paris immediately

New Eurofighter orders and strong business related to tanker and reconnaissance aircraft provide Airbus Defence with new room for maneuver. Losses in the satellite business recently forced Schöllhorn to cut 2,500 of approximately 33,000 jobs worldwide. A new dynamic could develop with new Eurofighter orders and a new FCAS launch.

But German politicians are not yet ready to write off the Franco-German FCAS system. CDU politician Röwekamp says, “It is not technical limitations that are currently slowing down the project, but national industrial interests.”

He expects the political issues regarding the program’s further development to be clarified by the end of the year at the latest, stating, “Our security policy objective should not fail due to trivial industrial policy issues.”

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Gibraltar and Spain to dismantle land border as UK signs post-Brexit treaty

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The decade of uncertainty following the United Kingdom’s decision to leave the European Union is set to end on Wednesday as the 118-year-old physical border between Gibraltar and Spain is dismantled.

Although the British Mediterranean territory voted by 95.9% to remain in the EU during the 2016 referendum, it was forced to leave the bloc as a consequence of the UK’s wider decision.

Following the departure, passport controls became more stringent and the transit of commercial goods grew increasingly complex for the thousands of people who cross the border daily, including 15,000 Spanish citizens who work in the territory.

In an effort to resolve these complications, administrations in Brussels, London, Gibraltar, and Madrid have spent ten years negotiating the removal of physical checks at the Spanish border.

Two-tier checks to be implemented at the airport

Under the terms of the agreement, Gibraltar will remain fully under British sovereignty and territory, but the land border will effectively become nothing more than a line on a map.

The technical details of the implementation mirror the procedures used for the Eurostar train line operating beneath the English Channel. Similar to the system at London’s St Pancras station, passengers arriving at Gibraltar Airport will clear both Gibraltar and EU passport controls in succession.

Passengers who receive clearance from both authorities will be permitted to travel freely within Gibraltar and the Schengen zone.

Through this mechanism, physical checks at the land border between Gibraltar and Spain will be completely eliminated.

Gibraltar will also align with specific aspects of the EU single market and customs regulations to facilitate the flow of goods, the supply of which had become difficult following Brexit.

While the Gibraltar administration emphasizes that it is not legally part of the Schengen zone and will retain the authority to determine its own visa policy, the arrangement will in practice offer a level of convenience similar to the Schengen regime, as there will be no passport control upon entering Spain.

Agreement to be formalized in Brussels

The UK Minister for Europe, Stephen Doughty, and the European Commission Executive Vice-President, Maroš Šefčovič, are formally signing the agreement in Brussels on Tuesday.

The process has been a cross-party effort in the UK, with former Foreign Secretary David Cameron also working extensively during his term to finalize the accord.

The agreement reached the signature stage in the spring of 2024, but the decision of then-British Prime Minister Rishi Sunak to call a snap general election, followed by the subsequent change of government, delayed the process by a year.

While Eurosceptics within the British Conservative Party argue that the agreement compromises Gibraltar’s sovereignty, the Gibraltar government supports the implementation of the plan.

Speaking to the Telegraph newspaper ahead of the removal of the border controls, Gibraltar’s Chief Minister, Fabian Picardo, strongly criticized Brexit.

“Brexit was the greatest self-inflicted wound the United Kingdom has delivered to itself since the Second World War,” Picardo said. “Brexit was sold to the British public on false promises. The United Kingdom should seriously re-evaluate its relationship with the European Union, including returning to membership or establishing a much closer partnership.”

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Mutual accusations of blackmail and assault overshadow AfD state election congress in Germany

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The Alternative for Germany (AfD) state congress in North Rhine-Westphalia ended in chaos on Sunday.

During the selection of the 22nd position on the candidate list for next year’s state elections, delegates aligned with the far-right Bundestag member Matthias Helferich proposed more than 100 candidates. This move was reportedly designed to block the vote in the town of Marl, halting progress on the list to force negotiations for subsequent positions.

Earlier in the candidate selection process, supporters of State Co-Chairman and lead candidate Martin Vincentz, who represents the moderate wing of the party, had prevailed. The defeat of Zacharias Schalley—a figure close to Helferich—by a candidate from the Vincentz camp triggered significant discontent within the radical wing of the party. Representing approximately 40% of the delegates, Helferich’s supporters reportedly demanded strong representation in the next state parliamentary group.

During the congress, Helferich claimed that Bundestag member Knuth Meyer-Soltau, a member of the Vincentz camp, physically assaulted him. Speaking to the newspaper WELT on Sunday, the 37-year-old Helferich described the incident:

“Meyer-Soltau was passing by the row where I was sitting. He was arguing with another member. When he turned back, while I was sitting in my chair, he shouldered me and shouted, ‘Shut up, you idiot!'”

Helferich added: “I do not know if he wanted to knock me out of my chair. However, because he insulted me in anger, I cannot rule out the possibility that this was a deliberate attack.”

An email exchange sent to the federal executive board and state management revealed that Helferich filed a criminal complaint on Monday.

“Meyer-Soltau hit my chair and my body, either intentionally or through negligence”

In the complaint filed by Helferich, he stated: “Meyer-Soltau hit my chair and my upper body hard, either intentionally or through negligence; I was only able to avoid falling by holding onto the edge of the table.” The complaint also named two witnesses.

In his letter to the party leadership, Helferich wrote: “Since numerous similar incidents of electoral law significance occurred at the state election congress, I believe the duty to maintain party order falls to the Federal Executive Board.”

Meyer-Soltau, a 61-year-old lawyer like Helferich, denied the allegations. Speaking to WELT on Sunday, the lawmaker said: “I reject the accusation being made.”

Meyer-Soltau suggested that Helferich viewed him as a powerful opponent because he had previously acted as the negotiator for the state executive board in the party’s expulsion proceedings against Helferich before the Federal Arbitration Court. The party court recently rejected the expulsion request.

“It is clear that this situation has not had a positive impact on our relationship,” Meyer-Soltau said. “Mr. Helferich, having suffered a heavy defeat at the nomination meeting, is clearly seeking satisfaction through other means. I will hand the matter over to my lawyer and take legal action.”

A letter sent to Helferich by Meyer-Soltau’s lawyer, which was leaked to the press, stated: “My client has never insulted you or physically assaulted you.” The letter demanded that Helferich cease repeating the claim and sign a cease-and-desist declaration carrying a contractual penalty.

Additionally, Meyer-Soltau’s lawyer filed a criminal complaint with the Dortmund Prosecutor’s Office for defamation. The petition submitted to the prosecutor’s office stated: “The accusation of physical assault is highly defamatory, calculated to permanently damage my client’s public reputation, and socially discredit him.”

Allegations of blackmail made against delegates at the congress

Allegations of threats against delegates also emerged at the state congress in Marl. Helferich ran against Klaus Esser, a close associate of Vincentz, for the 13th position on the candidate list. Esser, who needed just one vote to be elected in the first round, only secured a majority in the second round of voting.

Following the announcement of the results, a delegate took the stage to claim that before the second round, a state executive board member from the Vincentz camp went to the rows of the Wuppertal district association and threatened that a state lawmaker from Wuppertal would be expelled from the parliamentary group if the necessary votes for Esser were not delivered. The delegate announced that a complaint would be filed regarding the matter.

A spokesperson for AfD Co-Leader Alice Weidel told the media outlet “The Pioneer”: “Weidel does not approve of this situation. Such things must not happen.”

Other allegations of threats were voiced through the hall microphones during the congress. One delegate claimed that a candidate had been threatened by a district councilor and a district chairman.

“He was told that if he did not withdraw his candidacy, he would have no future in this party. There are numerous witnesses who can confirm this,” the delegate asserted.

Another delegate reported that a young woman was pressured by a district chairman who asked whether she would “lend herself to this game and submit to blackmail,” warning her that the situation would have “consequences for her in the district association.”

Marco Vogt, the Deputy Chairman of the Düsseldorf AfD and an ally of Helferich, said during his candidacy speech that young members who participated in the list disruptions had been threatened by their employers present in the hall.

Another candidate, a municipal councilor from Würselen, stated that a district administrator from the Aachen region had issued an implicit threat, telling him he would make many enemies in his own association if he did not withdraw his candidacy.

Candidate Leon Biallawons directly targeted lawmaker Knuth Meyer-Soltau, saying: “I tell you clearly, dear Knuth, I will not allow myself to be threatened by you. Because, dear Knuth, it is not you but the grassroots who will decide who succeeds in this party, and the grassroots will assert their will in the long term.”

Meyer-Soltau declined to comment on these allegations, stating: “I do not wish to comment on such baseless claims.”

Other tactics were used to slow down the proceedings at Sunday’s congress. One delegate requested a 30-minute recess because “there is an ice cream truck outside,” though this request was rejected. The convention manager, Julian Flak, was heard calling out to a delegate: “Take that garden furniture outside immediately!”

A message shared on Saturday in a chat group close to Vincentz stated that the “self-proclaimed patriotic group” had threatened to completely block the congress. It was alleged that the core group led by Helferich planned to deliberately disrupt the flow of the congress to force their opponents to the negotiating table.

Weidel accused of undermining efforts in chat group

On Sunday, in the same chat group, it was written that the sabotage action was being coordinated by Federal Deputy Chairman Sven Tritschler and Helferich. The message claimed that Tritschler had discussed the move with “his boss Alice Merkel”—a reference to AfD leader Alice Weidel. “This is a clear operation of attrition. We will not bow to an Alice Merkel,” the message read.

By Monday night, the ballot for the 22nd list position contained the names of 81 candidates. Some individuals who announced their candidacies withdrew before speaking. The results are expected to be announced next weekend.

The North Rhine-Westphalia AfD association has allocated a total of four weekends for candidate selection meetings. With the party projected by public opinion polls to win between 30 and 40 seats in the state parliament, competition for the top spots on the list remains intense.

An article titled “AfD-NRW Grassroots Resist Cartel Partyization,” published Monday on a Telegram channel close to Helferich, described the events as a “heroic act” and an “impressive reaction of an alert, idealistic grassroots.” The mass candidacy process was characterized as a “combination of Carl Schmitt’s partisan theory with a democratic liberation move unprecedented in AfD history.”

The article argued that if lead candidate Vincentz wants to translate polling success into a strong election result, he must unify the party by granting Helferich’s supporters viable, electable positions on the list.

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EIB to unveil 15 billion euro tech initiative to scale European startups

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The European Investment Bank (EIB) will announce a €15 billion initiative today, in collaboration with EU capitals and private investors, aimed at supporting the growth of European technology companies.

For decades, startups on the continent have struggled to raise the large-scale funding rounds necessary to scale on this side of the Atlantic, frequently turning to US investors or relocating abroad as they expand.

“We are catching up. Now we need to accelerate,” EIB President Nadia Calviño said.

Under the existing European Tech Champions Initiative, the EIB had already pooled resources with six EU governments to establish funds that invest in high-growth companies across the EU.

Calviño described the initiative as “very successful,” noting that it has supported 12 European “unicorn” companies valued at over $1 billion, including the German artificial intelligence translation firm DeepL.

The bank is now expanding the program with a new phase nearly four times the size of the original.

Twenty-five EU governments, alongside private investors such as Santander and Danske Bank, are expected to participate in the program.

This initial €15 billion aims to mobilize up to €80 billion in total investment. Calviño stated that this estimate is based on the multiplier effects achieved under previous programs.

As part of these efforts, the EIB also aims to attract European pension funds, which manage immense pools of capital but have historically allocated fewer resources to technology investments compared to their US counterparts.

In addition to the new funding, Calviño noted that the EIB will create a platform providing a single point of access for existing European scale-up initiatives, including the European Commission’s Scaleup Europe Fund, France’s Tibi initiative, and Germany’s Win initiative.

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