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Key Milestone Reached for Franco-German Future Main Battle Tank Despite Challenges.
The Main Ground Combat System (MGCS), a joint Franco-German project aimed at replacing the Leclerc and Leopard 2 tanks by 2035, advanced on January 23, 2025. In Paris, the four industrial partners—KNDS France, KNDS Deutschland, Thales SIX GTS, and Rheinmetall—signed a shareholder agreement to formalize their collaboration. This agreement establishes the framework for a project company, as outlined in a letter of intent signed during the Eurosatory exhibition in June 2024. The new entity, named "MGCS Project Company," will be headquartered in Cologne and will oversee all activities related to this program, which is pivotal for Europe's defense capability in ground combat systems.

Concept design of the futuristic MGCS next-generation battle tank equipped with advanced artificial intelligence, autonomous operational capabilities, and state-of-the-art sensor fusion technology, tailored to dominate modern ground warfare (Picture source: French MoD)
This development marks the start of Phase 1A of the MGCS program, which will span four years and aims to deliver a prototype by 2030. This phase will focus on eight key technological areas identified in 2024, such as advanced active protection systems, artificial intelligence-driven decision-making tools, interoperability, and next-generation communication systems.
Although the agreement is a major step forward, the notification of contracts for these studies has been delayed and is now expected after the summer of 2025. To support the initiative, France has allocated nearly €98 million in its 2025 budget for industrial efforts linked to this phase.
Despite this progress, the MGCS continues to face significant political and industrial challenges. Tensions persist regarding budget allocation and the division of industrial responsibilities between France and Germany. French parliamentarians have raised concerns about an imbalance in the partnership, while industrial partners such as KNDS and Rheinmetall remain divided on key aspects of the program.
These disagreements include decisions on core technologies, such as armament systems and critical components, with each party seeking to protect its national interests. Further complicating matters are the differing export policies of France and Germany, with Berlin adopting a more restrictive stance than Paris.
The MGCS must also address technological and operational challenges shaped by current geopolitical realities. Emerging threats such as kamikaze drones, advanced anti-tank missiles, and cyberattacks require cutting-edge solutions. The MGCS will need to integrate sophisticated active protection systems, artificial intelligence for enhanced decision-making, and seamless interoperability with other military platforms. These demands significantly increase the complexity of development and require substantial investments in research and development.
Nevertheless, the program is deemed essential for future operational needs. General Pierre Schill, Chief of Staff of the French Army, emphasized in a parliamentary hearing in late 2024 that "the Army needs the MGCS," highlighting that no single European country can independently produce such equipment at a sustainable cost.
The signing of the shareholder agreement marks an essential step forward, but the project remains subject to numerous challenges. The MGCS is expected to meet the operational demands of future conflicts while serving as a cornerstone of European defense autonomy. If successful, it could set a precedent for industrial and military cooperation in Europe, enhancing its strategic capabilities and addressing the evolving security landscape.