A new Airbus-led consortium has put forward an alternative plan to develop a next-generation fighter jet following the collapse of the Franco-German Future Combat Air System (FCAS) programme, marking a significant shift in Europe’s defence cooperation efforts.

The proposal, confirmed by one of the participating companies to AFP on Tuesday, comes just a day after German Chancellor Friedrich Merz and French President Emmanuel Macron agreed to end the long-running FCAS initiative after years of disagreement between industrial partners.

Munich-based defence electronics firm Hensoldt said it has joined Airbus Defence and Space, along with Autoflug, Diehl Defence, Rohde & Schwarz, Liebherr, missile manufacturer MBDA and engine maker MTU Aero Engines, in preparing a new framework for a next-generation combat aircraft.

The group has submitted its position paper to German Defence Minister Boris Pistorius, with reports indicating that it has also been sent to the Chancellor’s office in Berlin. According to the companies involved, the document outlines a revised approach to both the Future Combat Air System and its associated Next Generation Weapon System.

The German defence ministry confirmed receipt of the proposal and said discussions are ongoing. Pistorius noted that the government is still evaluating possible directions for the programme, adding that consultations with stakeholders have been taking place for months.

He described the end of the original FCAS project as personally disappointing, acknowledging the importance of Franco-German defence cooperation within Europe. However, he said strategic decisions must be made based on current realities rather than political sentiment.

The FCAS programme had been widely regarded as one of Europe’s most ambitious defence initiatives, designed to strengthen military integration amid growing security concerns linked to Russia’s actions and evolving transatlantic relations. The project aimed to deliver a sixth-generation fighter jet system through joint European development.

Despite its strategic importance, FCAS was repeatedly delayed due to disagreements between France’s Dassault Aviation and Airbus, which leads the German and Spanish participation in the programme. Tensions centred on industrial leadership, design authority and control over key technologies.

German partners had resisted Dassault’s push for greater control over aircraft development, while policy differences also emerged over operational requirements. German officials, including Friedrich Merz, have previously argued that Germany does not require carrier-based aircraft or nuclear-capable fighter systems, unlike France.

The breakdown of the programme has raised concerns about Europe’s ability to coordinate large-scale defence projects, even as governments seek to strengthen military capacity in response to global security challenges.

Further details of the Airbus-led alternative proposal are expected to be presented later this week at the Berlin ILA Air Show, where industry leaders and government officials are set to discuss the future of European combat aviation.

SpaceX is set to make its long-awaited stock market debut on Friday in what analysts say could become the largest initial public offering in history, with retail investors in Europe unusually given direct access to shares.

The company, founded by Elon Musk and known for its rockets, satellites and artificial intelligence ventures, is expected to list under the ticker symbol SPCX. The IPO, scheduled for 12 June, is projected to price shares at around $135 each, placing SpaceX’s valuation at approximately $1.75 trillion and raising about $75 billion in new capital.

Unlike most major listings, where institutional investors dominate allocations, SpaceX has reserved a significant portion of shares for individual investors. Up to 30 percent of the total offering is expected to be available to retail buyers, marking a major shift in IPO distribution practices.

According to the company’s prospectus, around 55.6 million newly issued Class A shares have been set aside for retail investors across seven European countries, including Germany, France, the Netherlands, Denmark, Norway, Spain and Sweden. Regulatory approval has already been granted in Germany by the Federal Financial Supervisory Authority, although it stressed the decision does not represent an endorsement of the company or its valuation.

In the United Kingdom, access will also be available through selected platforms, with broker networks including AJ Bell, CMC Markets, eToro, Freetrade, Interactive Brokers and Interactive Investor participating via Marex Financial’s public offer system.

Retail investors will be able to apply through fintech platforms such as Revolut, Hargreaves Lansdown and eToro, although minimum investment requirements vary. Some platforms have set entry levels starting at around $750, while others require higher thresholds in local currency.

Interest among European investors has reportedly been strong. Hargreaves Lansdown said tens of thousands of clients had already registered for IPO alerts since rumours of the listing emerged earlier this year. Market data from BNP Paribas indicates retail participation in large technology IPOs has been steadily rising, now accounting for as much as 30 percent of order books in some cases.

However, analysts and financial institutions have urged caution. Allocation is not guaranteed even for those who apply, with final share distribution expected on the day of listing. Early investors may also face restrictions on selling shares quickly, as brokers often penalise rapid “flipping” of IPO stock.

Volatility is expected in the early days of trading, particularly as institutions and retail investors react to the company’s high valuation. Currency fluctuations may also affect returns for European investors buying dollar-denominated shares.

Professor Meziane Lasfer of Bayes Business School said retail investors may face disadvantages compared with institutional funds, which have access to deeper financial analysis. He also pointed to SpaceX’s reported $4.94 billion loss in 2025 despite strong revenue growth, noting that profitability remains uncertain.

Some institutional investors have already opted out. Denmark’s AkademikerPension, which manages around $25 billion in assets, said it would not participate, citing concerns over valuation and governance structure, which gives Elon Musk significant voting control.

SpaceX itself has acknowledged in its regulatory filings that profitability is not expected in the near term, adding further debate around the long-term outlook for one of the most closely watched listings in global markets.