French exit from tank project with Germany cannot be ruled out, Rheinmetall CEO says

FRANKFURT: France could exit the Franco-German tank project MGCS, the CEO of Rheinmetall , one of the initiative's shareholders, was quoted as saying on Saturday, in what could be the latest ‌blow ⁠to defence cooperation ⁠on the continent.

"There is always a risk, but nothing has been decided yet," Armin Papperger told Welt am Sonntag, commenting about the project in which Franco-German tank maker KNDS and French group Thales also ⁠hold stakes.

* ‌Papperger said that France was ​considering ​drastic cuts to the project's budget, ⁠adding talks included the idea to ​reduce spending to "less than half" of ​previous plans.


* So far, the shareholding companies have received just €25 million ($29 million) since the project's inception, Papperger added.

* Berlin and Paris agreed in 2017 to work ‌on the Franco-German Main Ground Combat System (MGCS) tank to succeed the German ​Leopard 2 ​and the ⁠French Leclerc, but the project has been hit with delays.

* Papperger's comments come days after ​Germany and France scrapped the FCAS joint fighter project while KNDS's governance structure has also created tensions between the two countries, sources have said.