Julian Moxon/PARIS

FRANCE AND GERMANY have agreed to review all co-operative defence programmes shared by the two countries, to reduce costs and solve major budget difficulties faced by both.

The decision followed a meeting held on 5 June at Dijon, in France, between France's President, Jacques Chirac, and Germany's Chancellor, Helmut Kohl.

The defence ministers of the two countries have been told to report on options for cuts, in time for the next Franco-German summit in Florence, Italy, in December.

Rumours were also circulating that Germany agreed to join France in wanting to buy the European Future Large Aircraft transport aircraft off-the-shelf and not to pay for development. No confirmation of this was received as Flight International went to press.

Recent independent statements on the future of major programmes such as the Tiger and NH-90 helicopters, have soured relations. France's latest defence-budget proposals (now being debated in parliament) call for dramatic reductions in procurement of both, but were not discussed with Germany in advance.

The two leaders promised that "-nothing would stand in the way of their mutual co-operation", agreeing that none of the 27 existing programmes would be cancelled. Both countries have severe budget problems resulting from public-expenditure cuts, and are considering significant programme stretches to save money.

Source: Flight International