Efforts to broker peace between companies locked in a heated battle over Europe’s ambitious fighter aircraft program have collapsed, according to a German business publication’s weekend report.
The newspaper Handelsblatt revealed that negotiators from both France and Germany were unable to bridge the gap between feuding corporations in the Future Combat Air System initiative, though government officials may still step in to rescue the troubled venture.
Sources close to the discussions told the publication that the appointed mediators will now file individual reports detailing their unsuccessful attempts to reach a compromise.
German Chancellor Friedrich Merz is expected to receive a briefing about the ongoing corporate standoff over the weekend and will determine Germany’s next steps by Tuesday, according to the report.
The German leader is scheduled to sit down with French President Emmanuel Macron during an unofficial European Union gathering in Cyprus next Thursday and Friday, potentially providing an opportunity to address the crisis.
The €100 billion military aircraft development program has been paralyzed by an extended power struggle between France’s Dassault Aviation and Airbus, which serves as the representative for both Germany and Spain in the multinational effort.
Earlier this month on April 1, Dassault Aviation’s chief executive announced he was allowing his organization a brief window of two to three weeks to determine if an agreement could be reached regarding the combat aircraft system.
Merz previously stated in late March that he was exhausting all available options to preserve the program and had arranged for two neutral parties to help bridge the corporate divide.
When contacted for comment, an Airbus Group representative in France chose not to respond, while officials from the German government, French presidency, and Dassault Aviation did not provide immediate statements.
