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Chancellor Friedrich Merz announced the termination of the crewed aircraft component of the €100 billion Future Combat Air System program. Germany also canceled its F126 frigate program and advanced a pension overhaul raising the retirement age to 70.
gamereactor.euGerman Chancellor Friedrich Merz announced on June 24, 2026, that Germany and France have formally ended the crewed aircraft component of the Future Combat Air System program. The announcement came at the opening of the ILA Berlin Air Show, the same venue where the industrial partnership between Dassault Aviation and Airbus was unveiled in 2018.
The FCAS program began in July 2017 under President Emmanuel Macron and then-Chancellor Angela Merkel.
Spain joined in 2019. The project carried a projected cost of €100 billion and aimed to produce a sixth-generation stealth fighter to replace Rafale and Eurofighter Typhoon aircraft by the early 2040s. A German mediator concluded on April 18, 2026, that a jointly built crewed fighter was no longer feasible after Dassault Aviation sought up to 80 percent of the workshare.
A bilateral meeting between Macron and Merz on April 23, 2026, failed to resolve the dispute. On the same day as the FCAS announcement, Germany's Defense Ministry canceled the F126 frigate program. The ministry will instead procure eight MEKO A-200 frigates from ThyssenKrupp Marine Systems.
The original contract, awarded in 2020 to Dutch shipbuilder Damen Schelde Naval Shipbuilding, called for six 10,550-ton anti-submarine frigates at a cost of roughly €10 billion. Germany's navy currently operates 10 frigates, none specialized in submarine hunting. The MEKO A-200 design measures 121 meters, compared with the 166-meter F126.
A government-appointed pension commission presented a 33-point overhaul on June 23, 2026, that would gradually raise the retirement age to around 70 by the early 2090s. Merz rejected demands to redirect funds earmarked for Ukraine, migration, and development assistance to the pension system.
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