France, Germany, Spain agree on next phase of 100 billion Euro fighter jet deal

The three countries and their respective industries had struck a deal, said a defence source who spoke on condition of anonymity and did not give details.

France, Germany and Spain have reached agreement over starting the next phase of the development of a new fighter jet dubbed FCAS, Europe's largest defence project at an estimated cost of more than 100 billion euros, two sources told Reuters on Friday.

France, Germany, Spain agree on next phase of 100 billion Euro fighter jet deal | Representational image (AFP)

The three countries and their respective industries had struck a deal, said a defence source who spoke on condition of anonymity and did not give details.

A French government source also confirmed that the industries, seen as the main stumbling blocks on the way to an agreement recently, had found a deal to move to the next phase of the warplane project.

According to earlier information, the next development phase for the Future Combat Air System (FCAS) is expected to cost some 3.5 billion euros ($3.63 billion), to be shared equally by the three countries.

France's Dassault , Airbus and Indra - the latter two representing Germany and Spain respectively - are involved in the scheme to start replacing French Rafale and German and Spanish Eurofighters from 2040.

French President Emmanuel Macron and then German Chancellor Angela Merkel first announced plans in July 2017 for FCAS, which will include a fighter jet and a range of associated weapons, including drones.