French President Emmanuel Macron and German Chancellor Friedrich Merz renewed their push for a stronger and more autonomous Europe this week.They called for less bureaucracy in technology, more cross-border partnerships such as Paris artificial intelligence favorite Mistral AI’s venture wiht SAP SE, and a doubling of efforts to launch Franco-German defense projects such as a new fighter jet, Bloomberg reported.
But the effort has seen limited success. In the eight years since Macron announced a series of defense projects with Merz’s predecessor, Angela Merkel, two have been scrapped, one has been shelved indefinitely, and two (including the aforementioned fighter jet) have been plagued by infighting and delays.The joint project to avoid dependence on companies such as Amazon.com Inc. fared no better. Despite pressure from both Donald Trump and Vladimir Putin, old habits are hard to break.
What’s wrong?
The Future Combat Air System (FCAS), championed by Macron as a test of Europe’s confidence, should be a success story. It’s certainly ambitious: a combination of a sixth-generation fighter, drone, and combat data worth 100 billion euros ($115.2 billion). It meets a clear need, as a replacement for the Dassault Aviation SA Rafales and Eurofighter Typhoon fighters, which face retirement in the next three decades. The European market stands at about 1,045 planes,according to analysts at Citigroup Inc. And it offers a potential European alternative to the US, where Lockheed Martin Corp.’s F-35 has become a symbol of geopolitical subjugation.
The problems begin when corporate competitors must become partners
Dassault boss Eric Trappier and his Airbus SA counterpart, Guillaume Faury, have exchanged sharp words, with the former taking umbrage at the uneven distribution of work and a perceived lack of skills on the German side. The fact that Dassault’s Rafale is experiencing a moment as a “sovereign” alternative to the F-35 – with Ukraine now eyeing the purchase of 100 aircraft – does not help curb French feelings of superiority regarding its combat-proven equipment. With Airbus suggesting Dassault can leave the project if it wishes, top-down Franco-German partnerships like FCAS are becoming a “marriage of inconvenience” between radically different partners, says Christian Mölling, director of the Edina think tank.
The old solution of political leaders pitting corporate executives against one another is unlikely to suffice. Merz and Macron are aligned, but a power imbalance between the two exacerbates the situation. Macron is facing a budget crisis that threatens future defense spending – and points to a potential far-right victory.