Germany may ditch £90billion fighter jet project with France in favour of UK deal AND allow Britain to sell Typhoons to Saudi Arabia – potentially saving 6,000 jobs

Germany is considering abandoning a £90 billion fighter jet project with France and joining a rival program with Britain.

Ahead of a possible deal, the German chancellor, Olaf Scholz, is in talks to lift Germany’s veto on the supply of Eurofighter Typhoon jets to Saudi Arabia, which Britain sees as strategically important.

A pact of this nature would amount to a coup for Britain and reflect a widening rift between Germany and France, with the two nations holding opposing views on issues such as air defense, diplomatic protocol and energy.

The fighter jet issue has presented Scholz with difficult choices that will affect his country’s alignment in Europe and globally.

He must decide whether to keep the Future Combat Air System (FCAS), a leading French-German-Spanish program to build the next generation of air power that some analysts are hailing as Europe’s most important defense project.

The central focus of the project is to use a single platform to digitally interweave a new brand of stealth fighter with drones, automated mini-fighters, legacy fighters, and naval or ground equipment.

Germany has set aside €40 billion (£34.9 billion) of investment for FCAS and the system is expected to hit the market in 2040. But the plan has faced delays and clashes over its funding and design.

Sources familiar with Scholz’s thinking say he fears the project could become a white elephant and fall behind the competition. The times reports.

The US Navy and Air Force each plan to field their own new types of sixth-generation jets by 2030.

Rolls-Royce and BAE Systems are leading the development of a stealth fighter known as the Tempest, which is expected to be ready in 2035. This will form the basis of a wider British-Italian-Japanese aerospace alliance.

A senior German official told the newspaper that Scholz saw no point in FCAS competing with Tempest and that he wanted to merge the two or jettison FCAS and join Tempest if that was not an option.

Scholz is also said to be frustrated by the preferential treatment given to its own aerospace companies by France in the early stages of the FCAS project.

The source said Scholz was annoyed that Prime Minister Rishi Sunak had not yet visited him in Berlin and wanted to see much more direct involvement from top British government figures on strategic issues if a closer British-German partnership emerged.

British officials note that Sunak attended the Munich Security Conference in February and has taken part in phone calls and four face-to-face meetings with the chancellor on the sidelines of international summits this year.

Another problem is the war between Israel and Hamas.

Germany has expressed support for Israel and sources told the newspaper that the government would prefer to wait to see how Saudi Arabia positions itself before Berlin makes a decision on arms deliveries.

Lancashire-based BAE’s Typhoon program (pictured) employs more than 6,000 aircraft specialists and supports an estimated 28,000 jobs across the supply chain

Saudi Crown Prince Mohammed bin Salman (aka MBS) meets with Chancellor Olaf Scholz and his delegation at the As-Salam Palace in Jeddah, Saudi Arabia, on September 24, 2022

The decision on the next generation of fighter jets is closely linked to a British-German dispute over the supply of 48 Eurofighter Typhoon jets to Saudi Arabia in a package potentially worth more than £5 billion.

Germany blocked a deal to export British-made fighter jets to Saudi Arabia, putting thousands of highly skilled engineering jobs at risk.

Lancashire-based BAE’s Typhoon program employs more than 6,000 aircraft specialists and supports an estimated 28,000 supply chain jobs.

Production lines at the company’s factories would close without further orders for the aircraft from abroad as the Royal Air Force phases out the Eurofighter Typhoon from 2025.

The plane was built by a consortium including Britain and Germany, and export licenses must be approved by all members.

Germany is blocking Britain’s deal to sell 48 planes to Saudi Arabia over its controversial human rights record.

Berlin took this position after the killing by Saudi agents of dissident Jamal Khashoggi in 2018 – and in protest against the deaths of civilians due to Saudi airstrikes in Yemen. The veto could cost £15 billion, which Britain would have to raise from other markets to maintain production lines.

Scholz is apparently unwilling to upset green politicians who are strongly opposed to arms sales to Saudi Arabia.

When asked about the issue at a NATO summit in July, Scholz said “no decision at this time” on Typhoon deliveries to Saudi Arabia was “predictable.”

Any funding shortfall could also have a knock-on effect on research and development of Britain’s next generation fighter jet, the ‘GCAP’.

Justin Bronk, of military think tank RUSI, said: “Failure to secure the sale would be a black mark for Britain,” in terms of its reputation as a reliable arms partner.

The deal was initially signed by the British government five years ago, when it was believed the sale would be supported by Germany, Italy and Spain.

The government said: ‘The UK remains steadfast in its commitment to our strategic defense relationship with the Kingdom of Saudi Arabia.’