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Leaders of France and Germany are set to discuss the future of the troubled Future Combat Air System (FCAS) during an upcoming EU summit. The project, which also includes Spain, aims to develop a next-generation air combat system but is now at risk due to ongoing disputes between major industry players.

The conflict centers around disagreements between Dassault Aviation and Airbus over control and leadership of the fighter jet program. While Dassault is pushing for greater authority over the aircraft’s core development, Airbus insists on maintaining equal partnership terms, creating tensions that threaten to derail the €100 billion initiative.

Despite growing concerns, Emmanuel Macron and Friedrich Merz are expected to explore ways to keep the project alive. A collapse of FCAS could significantly reshape Europe’s defense industry, potentially shifting alliances and boosting rival programs like the UK-led GCAP fighter initiative.

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German Chancellor Friedrich Merz secured an absolute majority in parliament on Friday for his controversial pensions bill, overcoming resistance from younger members of his own conservative bloc. The draft, which guarantees current pension levels until 2031, passed with 319 votes, indicating it likely succeeded without the support of opposition parties.

The vote came after days of turbulence within Merz’s Christian Democratic Union/Christian Social Union (CDU/CSU) alliance. A youth faction inside the party had threatened to vote against the bill, arguing that it preserves an unsustainable system and places an unfair financial burden on future generations.

The dispute underscored growing questions about Merz’s control over his party and the stability of the coalition government, which includes conservatives and the center-left Social Democrats. Analysts say the internal tensions and reliance on a slim parliamentary majority point to challenges ahead for implementing reforms aimed at reviving Germany’s struggling economy and strengthening its neglected military sector.

Across Europe, pensions and generational fairness are emerging as hot political issues as aging populations strain budgets. Although Merz ultimately avoided the embarrassment of needing opposition support—despite a surprising offer from the Left Party to abstain—the infighting has deepened doubts about his ability to steer major legislation in the future.

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