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Germany and France scrap joint fighter jet project amid industrial deadlock

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Germany and France have abandoned their plans to jointly develop a next-generation fighter jet, following deep-seated industrial disputes that have derailed one of Europe’s most ambitious defense initiatives.

The collapse of the program represents a significant setback for French President Emmanuel Macron’s long-standing vision of strengthening European defense integration and strategic autonomy.

A German government official, speaking to POLITICO on condition of anonymity due to the sensitivity of the matter, stated: “President [Emmanuel] Macron and Federal Chancellor [Friedrich Merz] have reached a joint conclusion that the companies involved are unable to come together to produce a joint fighter aircraft. They accept this reality.” The official added: “For this reason, Chancellor Merz has advised President Macron not to pursue further work on the development of a joint combat aircraft.”

The project, known as the Future Combat Air System (FCAS), was launched in 2017 but had repeatedly stalled due to fierce disagreements between France’s Dassault Aviation and Germany’s Airbus Defence and Space over which entity would take the lead. Spain is also a partner in the FCAS program, which was intended to replace the German Eurofighter and the French Rafale fleets by approximately 2040.

Beyond the core fighter jet, the program encompasses a “system of systems,” including drones and a “combat cloud”—a digital backbone designed to integrate sensors, satellites, unmanned platforms, and manned aircraft into a single operational network.

Late Monday, the Elysee Palace issued a statement confirming that Airbus Defence and Space and Dassault Aviation had failed to reach an agreement. The French presidency implied that the decision to terminate the project was a unilateral German move, telling reporters: “German authorities concluded that it was no longer possible to exert further pressure on the companies in question. France maintains the view that Franco-German cooperation in defense and security remains vital for both our countries and our European partners.”

Despite the failure of the fighter jet component, the German official did not rule out continued cooperation between Paris and Berlin on drones and the combat cloud system. “The core of FCAS will continue as a European ‘system of systems.’ This is, in a sense, the nervous system that connects aircraft, drones, and other components into an integrated whole,” the official said.

The official further noted that the French and German defense ministries would be tasked with developing a work plan for industrial defense cooperation “focused on several realistic and relevant projects.”

The FCAS is not the only multilateral defense program facing significant hurdles. Joint Franco-German plans to develop maritime patrol aircraft, a next-generation tank (Main Ground Combat System), and new artillery systems have all faltered in recent years. Simultaneously, the Global Combat Air Programme (GCAP)—a rival fighter jet project led by the United Kingdom, Italy, and Japan—has also experienced internal friction.

France has effectively withdrawn from the multi-billion-euro, four-nation Eurodrone program. The future of that initiative remains uncertain as the remaining partners—Germany, Italy, and Spain—evaluate how to proceed.

The termination of the FCAS fighter jet component was not a sudden rupture but the culmination of a protracted and attritional struggle between Europe’s two most influential defense firms, Airbus and Dassault Aviation. As previously reported by POLITICO, German and French officials had been privately acknowledging for months that the fighter jet element of the project was effectively “dead.”

The deadlock intensified last summer when Dassault, the manufacturer of the Rafale, pushed to secure the undisputed lead in the construction of the FCAS fighter. Under that proposal, Airbus would have been relegated to the role of a subcontractor with limited oversight of the design, while Dassault would have retained the power to select suppliers, determine workshare, and act as the sole point of contact for customers.

Airbus rejected this approach as a fundamental violation of the original partnership agreement. The company argued it would transform a European cooperative program into a French-led project subsidized by German and Spanish funding and industrial expertise. By September, reports emerged that Berlin had begun exploring alternative options, including potential cooperation with Sweden or joining the rival GCAP program.

Beyond industrial control, Paris and Berlin remained divided over the technical specifications of the aircraft. France required a lighter jet capable of carrier-based operations, while Germany sought a heavier airframe optimized for air superiority missions. Berlin eventually proposed building two separate versions of the aircraft, a solution Paris rejected.

In March, Merz and Macron agreed to give the project a final opportunity to succeed, but subsequent negotiations failed to bridge the deep divisions. On Monday, the German Chancellery officially notified Airbus of the decision to cancel the project. According to La Tribune, Merz is expected to formally announce the decision on Wednesday during the opening of the ILA Berlin Air Show.

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Outgoing UK PM Starmer to boost defense spending by £1 billion to secure legacy

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Outgoing British Prime Minister Keir Starmer is pledging to secure at least £1 billion in additional funding for the defense sector, according to people familiar with the matter.

The move is being viewed as an effort by Starmer to cement his political legacy in the prime minister’s office before stepping down, the Financial Times reported.

Sources said Starmer aims to publicly present the defense sector investment plan on Tuesday, June 30, following multiple prior delays to its publication.

Under the plan, the total funding volume for the armed forces over the next four years is expected to rise approximately £14.5 billion to £15 billion above previously projected levels.

The Starmer-led government had previously proposed providing £13.5 billion in additional resources for defense needs.

However, former Defence Secretary John Healey opposed the prime minister’s proposal, viewing the amount as insufficient, and subsequently resigned from his post in June.

Healey had insisted on an £18 billion increase in the defense budget. In his resignation statement, the outgoing secretary called on the head of government to commit to raising military spending to 3% of gross domestic product by 2030.

Healey noted that the prime minister’s existing plan would only maintain this ratio at 2.68%.

Following these developments, newly appointed Defence Secretary Dan Jarvis reshaped the budget plan and made several difficult decisions, according to sources.

The new program drafted by Jarvis reportedly places a higher priority on the combat readiness of the military and the deployment of autonomous technologies—including unmanned ground vehicles—across all military units compared to the proposals put forward by the departed Healey.

A government official indicated that in the event of potential last-minute disruptions, the ultimate deadline for the announcement would be July 6, immediately ahead of the NATO summit to be held in Ankara.

The Financial Times pointed to the obligation to demonstrate to allied countries, most notably US President Donald Trump, that the United Kingdom is making serious investments in defense as a key source of pressure on Starmer.

According to assertions in the report, Starmer could hand over prime ministerial authority to Andy Burnham, who is seen as his strongest successor, as early as July 20.

Sources familiar with the process noted that Burnham has already begun receiving briefings on government operations.

Furthermore, sources stated that Burnham has privately agreed with arguments that the spending plan should be approved before the NATO summit rather than being delayed.

Conversely, one source did not rule out the possibility that the incoming prime minister could face more intense pressure, which could lead to a reassessment of defense funding.

Commenting on the position of the military leadership, the source remarked: “The military wing has adopted an attitude of ‘it is better than nothing,’ but we will have to renegotiate this issue with the new Prime Minister, Andy Burnham, in any case.”

Keir Starmer announced in June that he would resign following pressure from within his own party.

Starmer has led the British government for approximately two years.

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Europe faces 15-year low in winter gas reserves as June storage targets fall short

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European Union member states risk entering the upcoming heating season with their lowest natural gas reserves in 15 years, according to industry assessments.

A report by consultancy firm Wood Mackenzie, published by the Financial Times, warns that if current trends persist, energy markets could face a new wave of price spikes ahead of the winter period.

Analysts project that European underground gas storage facilities may reach a fullness level of only 76% by the end of the injection season, which typically runs from April to October.

After a harsh winter left storage facilities at a mere 28% capacity at the start of the season, EU nations are struggling to rebuild their reserves to historical norms.

According to data from Gas Infrastructure Europe (GIE), the current average storage fullness level stands at 48.29%.

June, traditionally the highest-volume month for filling underground storage facilities in the European energy sector, failed to deliver the targeted efficiency this year. Industry officials note that above-normal temperatures expected in July and August will drive up electricity consumption for cooling, making it even more difficult to direct gas into storage.

Having severely depleted its reserves during the past two harsh winters, Europe must store approximately 70 billion cubic meters of natural gas to prepare for the upcoming winter.

However, the storage injection rate failed to accelerate in June, falling 14.7 percentage points behind the five-year average. In the final week of June alone, this deficit widened by an additional 0.2 percentage points.

Renewable energy sources are also proving insufficient to bridge the supply gap. According to WindEurope data, the share of wind energy in electricity generation averaged approximately 14% in June.

This is down from 15% recorded during the same period last year, with the share of wind-generated electricity dropping to as low as 9% in the second half of June. A heatwave sweeping the region, with temperatures hovering two degrees Celsius above seasonal norms, represents another key factor driving up energy demand.

Multiple global geopolitical developments underpin the natural gas shortfall confronting Europe. Disrupted shipments of liquefied natural gas (LNG) through the Strait of Hormuz due to hostilities between the US and Iran, combined with production declines in Qatar and the United Arab Emirates (UAE), have tightened global supply.

Meanwhile, in line with decisions by the Kyiv administration, the transit pipeline carrying Russian natural gas to Europe through Ukrainian territory has been completely shut down. The EU must now secure gas not only for its own domestic consumption but also to supply facilities in Ukraine.

In an effort to bypass this halt in Gazprom’s pipeline gas through increased LNG imports, EU countries purchased 109 million tons (approximately 142 billion cubic meters) of LNG last year, representing a 28% increase over the previous year.

However, LNG imports in June fell by approximately 17% compared to the same month last year, dropping to 7.8 million tons—the lowest level in 10 months.

Another critical factor squeezing supply in the European market is the EU’s strategy to phase out Russian energy products entirely.

Russia currently supplies 14% of Europe’s total LNG imports.

According to a phased embargo plan approved by the European Council, LNG imports from Russia will be completely banned starting January 1, 2027.

The import ban on Russian pipeline gas is scheduled to take effect on September 30, 2027. While a transition period is provided for existing contracts, member states have been tasked with the obligation to verify the country of origin for all imported natural gas.

Despite these market uncertainties, the “day-ahead” spot gas price at the Dutch TTF hub—Europe’s benchmark gas trading platform—declined to $475 per thousand cubic meters at the end of June, down from an average of $565 in May.

With a total active gas storage capacity of 109 billion cubic meters, Europe maintains its position as the largest importer in the global LNG market.

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Buckingham Palace updates King’s official role to focus on securing faith in multi-faith Britain

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The official job description of the British monarch has been formally revised to state that the King’s role is to “secure the environment for faith” within a multi-faith nation, according to a newly updated definition of the Crown’s responsibilities published by Buckingham Palace.

Under the rewritten description, the King, who holds the title of “Supreme Governor of the Church of England,” is tasked with preserving a supportive space for religious practice.

The adjustment was disclosed in the 2025–26 Sovereign Grant report, the annual financial and administrative review of the royal household. It modifies the definition of the King’s role as “Head of the Nation,” which last year described the monarch as the “Head of the Church of England and Defender of the Faith.”

This year’s report details the role with greater specificity: “His Majesty is Supreme Governor of the Church of England and secures the environment for faith in a multi-faith nation.”

Prior to his coronation, intense public debate centered on whether King Charles III would break with his Christian predecessors by choosing to be styled as “Defender of Faiths” in the plural, rather than the traditional singular “Defender of the Faith.” Ultimately, the King chose to retain the historic singular formulation.

Nevertheless, both during his tenure as the Prince of Wales and since ascending the throne, the King has made interfaith dialogue a cornerstone of his public life.

Regularly referencing the Abrahamic religions, King Charles maintains active engagement with Jewish, Muslim, Sikh, Orthodox, and other religious communities across the United Kingdom and globally.

By contrast, the official role of Queen Elizabeth II, as outlined in the Sovereign Grant reports during her reign, was more straightforwardly defined, styling her as “Supreme Governor of the Church of England” and “Head of the Armed Forces.”

In this year’s assessment, the King’s relationship with the military has been rephrased, stating that he “provides spiritual support to our Armed Forces.”

The updated report also outlines several of the King’s core purposes in detail, describing him as a “catalyst for charitable activity,” recognizing his work on “the degradation of nature,” and highlighting his responsibility to “foster a sense of pride, continuity, and stability, reinforcing the social fabric and cohesion of the United Kingdom, particularly at significant moments in national life, both in times of celebration and tragedy.”

The document adds: “His Majesty also has a particular role in bringing together and engaging with communities and faith groups across the different regions and nations of the United Kingdom.”

Beyond the constitutional and ceremonial adjustments, the report revealed that the King paid £12.9 million in tax during the 2024–25 financial year, a figure that places him among the top 100 taxpayers in the country for that period.

Furthermore, it was announced that the King and Queen will not move their permanent residence to Buckingham Palace even after the ongoing £369 million reservicing and renovation program is completed.

A YouGov opinion poll published on Friday indicated that 66% of the British public support the decision not to relocate to the palace.

This is not the first time Buckingham Palace has revised the formal job description of the reigning monarch.

In 2022, near the end of Queen Elizabeth II’s reign, the Sovereign Grant redefined the role of the monarchy by removing a series of specific duties she “must fulfill,” delegating more responsibilities to the then-Prince of Wales.

That revision marked the first time in at least a decade that the late Queen’s official duties had been altered in the palace’s annual report, removing specific events—such as the State Opening of Parliament—that had previously been deemed mandatory under “constitutional convention.”

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