French budget cuts put MGCS tank project at risk after FCAS collapse, Rheinmetall CEO warns

FCAS collapse casts shadow over MGCS

Europe's defence industry has long been criticised for fragmentation. In 2017, Germany and France launched two flagship joint projects to change that: the FCAS fighter jet and the MGCS main battle tank. On Tuesday, 9 June, Chancellor Friedrich Merz and President Emmanuel Macron formally ended the multi-billion-euro FCAS programme after Dassault and Airbus failed to reach an agreement. Now the MGCS tank effort faces a similar fate.

“The danger is always there, but nothing is decided yet.”

Budget cuts prompt Papperger warning

According to the Rheinmetall CEO, France is planning drastic reductions to the MGCS budget. No final spending envelope has been agreed, but the direction worries the German side. Papperger told Welt am Sonntag that less money would mean even slower progress on a programme that is already behind schedule.

“We have zero decisions on the final budget. If you have less money available, you won't go faster, and we are already very slow.”

The MGCS was intended to replace the Leopard 2 and Leclerc tanks by 2040 with a single, cross-platform ground combat system. Partners include Rheinmetall, France's Thales and KNDS, the company created from the merger of Germany's Krauss-Maffei Wegmann and France's state-owned Nexter.

Interim Leopard 3 advances

Before the MGCS turbulence, the German participants Rheinmetall and KNDS Deutschland had already pushed ahead with an interim solution. A new main battle tank, unofficially labelled Leopard 3 by the defence press, is under development and could enter service in the early 2030s. The full MGCS platform is not expected to be ready until the 2040s.

“That is an insane amount of time. I can't say today whether there will even be an MGCS.”

Eurosatory opens with strong German presence

Despite the friction in flagship bilateral programmes, some 100 German companies are taking part in the Eurosatory defence fair in Paris this week. The event, which runs from Monday to Friday, draws roughly 2,600 exhibitors from 68 countries. The German defence industry association BDSV sees the large turnout as a signal of openness to international cooperation beyond traditional partnerships.

“We are present with around 100 companies at the fair. That shows we want to present and network internationally, and we are also interested in cooperation with other international partners.”