Following yesterday's news (Wednesday 12 February) that the German Bundestag voted credits for the joint-development of the Future Combat Air System (FCAS);

Nicolas Jouan, Defense Analyst at GlobalData, a leading data and analytics company, offers his view on the current state of the program:

"News that the Budget Commission of the German Budestag finally voted a special credit allocation for the development of the SCAF was expected, but still comes as a relief for its partners France and Spain.

"The European multirole aircraft industry is already crowded with the Eurofighter Typhoon, Dassault Rafale and Saab Gripen fielding the fourth-generation market. Lockheed Martin's fifth-generation F-35 is also growing its share with sales to Britain, Italy, Poland and Belgium. GlobalData forecasts that multirole aircrafts will be the second fastest growing category of the fixed-wing sector over the next decade with a 2.7% compound annual growth rate (CAGR) between 2020 and 2029. This lucrative prospect has invited France and Germany to commit a combined RDT&E budget of US$175m for FY20, a sum likely to reach a cumulated value of US$2bn in the next three years only.

"The FCAS will be a sixth-generation system, scheduled to fly in 2040 but already in competition with Britain-led Tempest program, a similar parallel European-wide project (it was joined by Italy in September 2019).

"The FCAS is nevertheless considered as a strategic priority by proponents of a more integrated European defense. France in particular values the strategic autonomy conferred by an indigenous aircraft design such as the FCAS, whose airframe will be developed by Rafale's designer: Dassault Aviation. The 'system of systems' will allow France and Germany to transition from legacy fleets of Mirage 2000, Rafale, Tornado, and Typhoon aircrafts.

"Despite agreeing in principle, Germany has been accused by high-ranking French officials of dragging its feet and privileging the interest of its national industry. The two countries notably clash on arms exports, France being generally more open to dealing with controversial buyers for political gains while Germany pledges a stricter proactive control policy.

"The voting of the FCAS budget is an encouraging signal sent by the German legislature. However, long-term threats still loom on the program as the political situation in Germany remains unstable and the possibility of a less accommodating coalition of left-leaning parties could further undermine Franco-German relations."

ENDS

For more information

Analysts available for comment. Please contact the GlobalData Press Office:

EMEA & Americas: +44 (0)207 832 4399

Asia-Pacific: +91 40 6616 6809

Email: pr@globaldata.com

For expert analysis on developments in your industry, please connect with us on:

GlobalData | LinkedIn | Twitter

About GlobalData

4,000 of the world's largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData's unique data, expert analysis and innovative solutions, all in one platform. GlobalData's mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

.

(C) 2020 M2 COMMUNICATIONS, source M2 PressWIRE