German defense giant Rheinmetall has demonstrated its new FV-014 loitering munition being launched from a containerized launcher mounted on a truck, including while the vehicle was moving. The test marks the first time the FV-014 has been fired from its Containerized Missile Launcher, a modular system intended to carry significant numbers of missiles or loitering munitions.

The demonstration took place in July at the National Test Center for Unmanned Aerial Systems at the German Aerospace Center in Cochstedt, Saxony-Anhalt. The customer demonstration included both stationary and mobile launches from an HX-series truck, followed by simulated operational profiles and attack flights.

The FV-014 is a relatively long-range, truck-launched loitering munition that can perform its own reconnaissance and then conduct a precision attack. Rheinmetall says the weapon has a range of up to 100 kilometers (62 miles) and can remain airborne for as long as 70 minutes.

Like many loitering munitions, this endurance gives the operator considerably more time to search for targets and decide whether to conduct an attack than would be available with a conventional fire-and-forget missile. Rheinmetall describes the system as combining “reconnaissance, target identification and precision strike capabilities within a single system.”

The FV-014 is designed to remain under permanent human control. An operator using the associated ground station can identify and track targets and authorize an attack, while also having the ability to abort an engagement if circumstances change.

As we have discussed in the past, human-in-the-loop architecture is useful when operating against targets that may be moving or difficult to identify in advance.

However, the concept also has significant drawbacks compared to increasingly autonomous loitering-munition concepts in which the system itself can perform much more of the target-detection and engagement process. Human-in-the-loop comes with latency and communications dependencies, as well as operator workload, but it may also be the result of a particular customer demand, whether operational or legal. At the same time, for all its promise, autonomous technology is still in its infancy.

The FV-014 has a launch weight of around 50 pounds, including a payload of approximately 13 pounds. Its HEDP, or high-explosive dual-purpose, warhead is claimed to be capable of penetrating around 24 inches of solid armor steel.

That would give the weapon a substantial anti-armor capability for its size, although Rheinmetall also says the warhead can be used against unarmored targets and infrastructure.

After being ejected from its launch tube using a booster, the FV-014 unfolds its wings and transitions into aerodynamic flight. An electrically driven propeller provides propulsion during the cruise phase. Rheinmetall also says the weapon has been designed with reduced radar and infrared signatures in mind.

The company is pitching the FV-014 for both individual attacks and coordinated swarm operations. In the latter case, multiple weapons could be used simultaneously against a number of targets or to overwhelm an adversary’s defenses and create outsized, rapid effects on the battlefield.

‘Swarm’ has become something of a catch-all term in the loitering-munition market, however, and Rheinmetall has not provided detailed information about the level of autonomy or coordination available between FV-014s. The company does say that the weapon has network connectivity and a “high degree of autonomy” intended to help it operate in environments where satellite navigation is being disrupted.

This capability is particularly important on the modern battlefield, where electronic warfare systems are routinely used to interfere with satellite-navigation signals. Rheinmetall says the FV-014 is resilient to global navigation satellite system (GNSS) interference, although specific details about its navigation architecture have not been disclosed.

The weapon’s launch system, Rheinmetall’s Containerized Missile Launcher, is built around a standardized ISO container that can be installed on a fixed site, carried by a truck, or potentially integrated onto a ship. In its 20-foot configuration, the company says the launcher can accommodate up to 18 FV-014s.

That is considerably fewer weapons than some other containerized drone-launcher concepts Rheinmetall has previously promoted. In 2024, for example, the company showed a containerized system intended to carry as many as 126 Hero-series loitering munitions from Israeli manufacturer UVision.

Rather than simply acting as a large rack of launch tubes, the new launch system has its own integrated power supply and can connect to command, control, communications, computers and intelligence networks. It can also be operated locally, through a radio link, or via satellite communications.

The launcher is intended to make extensive use of commercial off-the-shelf components, which should reduce lifecycle costs. It also incorporates what the company calls a “sleeper” capability, allowing the launcher to remain inactive and be remotely activated when required.

The ability to move the entire system on a standard military truck is potentially significant. Rheinmetall has demonstrated the launch of FV-014s from a moving truck, as well as a stationary one. Shooting on the move could be beneficial when defending convoys, engaging targets of opportunity, or offering rapid fire support to units within range. Beyond that, interceptor drones would allow for engagements against drone threats while on the move.

Using a standardized container makes it possible to rapidly relocate a large number of long-range loitering munitions without relying on a dedicated launcher vehicle, and also opens up potential maritime applications. Rheinmetall says future versions are planned for other mobile land platforms and seagoing ones, while the container itself is compatible with existing transportation and logistics infrastructure.

This general concept is already seeing considerable uptake. Containerized launchers provide a relatively discreet way of deploying large numbers of missiles or drones and can potentially turn trucks, ships, or other platforms capable of carrying ISO containers into weapons carriers. TWZ has previously examined the broader appeal of this approach, including Rheinmetall’s earlier Hero-family launcher concept.

In the past, we have also highlighted the immense potential battlefield impact of this type of capability, which other countries, especially China, are also

Belgium’s long-running plan to replace its ageing M-class frigates has entered a new and potentially consequential phase. Defence Minister Theo Francken has publicly stated that the joint Dutch-Belgian frigate programme is moving “completely in the wrong direction” on both delivery dates and price, an outcome he described as unacceptable.

The remarks matter because Belgium and the Netherlands had already committed to the Anti-Submarine Warfare Frigate (ASWF) programme led by Dutch shipbuilder Damen. The project was intended to deliver four ships, two for each navy, replacing the Belgian and Dutch Karel Doorman-class frigates. But the programme now faces a procurement problem: an increasingly ambitious design, a stretched industrial schedule, and a bill that has grown far beyond early expectations.

Speaking to Belgian outlet VTM NIEUWS, Francken said Belgium remains in discussions with the Dutch government. At the same time, however, he announced that Brussels will launch a Request for Information (RFI) process aimed at other European frigate builders. He explicitly named Italy, France, Germany, Spain and Türkiye. That is five countries, rather than four, and it is an important distinction. Belgium is not merely seeking leverage in negotiations with Damen; it is signaling that it is prepared to examine a much wider set of industrial and naval options.

Hawnha Ocean

Logo Naval News

Search

Search...

Home » Belgium Eyes ASWF Alternatives as Damen Timeline and Costs Soar

Euronaval 2026

Belgium Eyes ASWF Alternatives as Damen Timeline and Costs Soar

Published on 21/07/2026

By Tayfun Ozberk

In News

Belgium Eyes ASWF Alternatives as Damen Timeline and Costs Soar

ASWF artist rendering. Ultra Marine picture.

Share

Belgium’s long-running plan to replace its ageing M-class frigates has entered a new and potentially consequential phase. Defence Minister Theo Francken has publicly stated that the joint Dutch-Belgian frigate programme is moving “completely in the wrong direction” on both delivery dates and price, an outcome he described as unacceptable.

Tayfun Ozberk story, additional reporting by Xavier Vavasseur

The remarks matter because Belgium and the Netherlands had already committed to the Anti-Submarine Warfare Frigate (ASWF) programme led by Dutch shipbuilder Damen. The project was intended to deliver four ships, two for each navy, replacing the Belgian and Dutch Karel Doorman-class frigates. But the programme now faces a procurement problem: an increasingly ambitious design, a stretched industrial schedule, and a bill that has grown far beyond early expectations.

Speaking to Belgian outlet VTM NIEUWS, Francken said Belgium remains in discussions with the Dutch government. At the same time, however, he announced that Brussels will launch a Request for Information (RFI) process aimed at other European frigate builders. He explicitly named Italy, France, Germany, Spain and Türkiye. That is five countries, rather than four, and it is an important distinction. Belgium is not merely seeking leverage in negotiations with Damen; it is signaling that it is prepared to examine a much wider set of industrial and naval options.

“In October, I will make a decision on the program. We urgently need new frigates in any case. The current ones are truly worn out.”

Belgian Defense Minister Theo Francken to VTM NIEUWS

Francken previously voiced his concerns twice, during National Defense Committee hearings of the Chamber of Representatives in Brussels.

On July 17th, Francken said: “As I indicated during the committee meeting on July 1, the future of the ASWF program currently remains uncertain. At this moment, there is no clarity regarding the final schedule, nor regarding the budgetary impact. The Netherlands still needs to present more concrete options regarding the various points, where the time factor remains of paramount importance, particularly in light of the recent events involving the Leopold I. The ships are simply worn out. All possible options are currently still on the table. Crucial elements are still missing to make a clear decision, and these will be investigated further in the coming period. A clear, feasible, and valid solution for the ASWF program and for the Navy is urgently needed. I am aware of this. I am fully engaged in this. More news regarding this will follow in the autumn.“

While on July 1st, the Belgian Defense Minister said: “Today, the ASWF program finds itself in rough waters, undoubtedly a deliberate pun.

The project, which is being carried out binationally with the Netherlands within the framework of BeNeSam, is grappling with technical and design-related problems. The margins of the original hull design ultimately proved insufficient, which led to a design crisis. In (…) 2026, a new, larger design was proposed, which, however, entails additional costs and further delays. A key decision point regarding the program is expected when the Netherlands presents concrete options. Regarding the delivery schedule, there is currently no definitive or reliable timeline.

An earlier schedule aimed for commissioning around 2031. However, following a previous extension, recent signals point to further delays of two to three years. The legal and contractual leverage available to Belgium to avoid additional costs being unilaterally passed on is the refusal to accept contractual adjustments for cost increases that were not contractually foreseen. Belgium takes such decisions jointly with the Netherlands by unanimous vote in the Joint Steering Committee, as provided for in the memorandum of understanding. This summer it must become clear whether the current cooperation model with the Netherlands can be continued, or whether Belgium must make other strategic choices to avoid a serious gap regarding maritime capabilities.

In summary, the situation today remains very uncertain. There is still no clarity regarding the final schedule. The budgetary impact is still subject to negotiations, and alternative solutions are being explored but have not yet been finalized. So no, I do not expect that. We have already met, the Netherlands has made a number of proposals, additional studies still need to be conducted, and we will look into these during the summer and autumn.”

The original ASWF programme was built around close Dutch-Belgian cooperation, common logistics and shared operational requirements, particularly in anti-submarine warfare. Yet those advantages become less persuasive if the vessels arrive too late. The Belgian Navy’s current frigates are old, increasingly expensive to maintain and nearing the limits of their practical service life. A replacement programme that slips into the mid-2030s creates an uncomfortable capability gap for a country that still expects to contribute to NATO maritime operations in the North Atlantic, Baltic and wider European waters.

Belgium ASWF: Which alternatives ?

The alternatives mentioned by Francken are varied. Each country and shipbuilder will carefully review the RFI before submitting proposals. We don’t know what the exact requirements are. Italy could offer the FREMM EVO (which has just been selected by Portugal, in addition to the Italian Navy) or the PPA design, both of which reflect Italy’s experience in building multi-purpose surface combatants. France’s most obvious candidate would be Naval Group’s FDI frigate, a compact but heavily equipped design now entering service with the French and Hellenic Navy and recently selected by Sweden. Germany could point to a TKMS MEKO-based solution (which was just selected by the Germany Navy in place of the Damen-designed F126) or Rheinmetall’s GMF-120 compact frigate design. Spain’s Navantia would likely promote the F-110 design. The Spanish shipbuilder has a brand new shipbuilding facility in Ferrol to support this program and is able to scale up production and produce F-110 hulls at pace.

Türkiye is the most politically interesting entry on the list and have surprised many. Turkish shipyards could present the I-class frigate as a readily identifiable option, while larger future designs may also be marketed depending on Belgian requirements. The I-class is not a direct ASWF equivalent and would require adaptation to Belgian sensors, weapons and NATO integration standards. Still, Türkiye’s attraction is clear: its naval industry has demonstrated a capacity to build a broad range of warships at pace, including corvettes, frigates, amphibious vessels and auxiliary platforms.

Francken’s interest did not emerge in a vacuum. During his visit to Türkiye in May, the Belgian minister toured Istanbul’s Sedef Shipyard and engaged with Turkish defence companies. He described Türkiye as an emerging maritime power and highlighted what he saw as the country’s ability to produce naval systems quickly and at competitive cost. Those remarks should be treated as political observations rather than proof that a Turkish deal is imminent. Visiting a shipyard and praising industrial capacity is not the same as endorsing a final platform, signing a contract or resolving the difficult questions of combat systems, armaments, support and sovereign maintenance.

Nevertheless, the visit has strengthened the perception that Turkish industry is now part of Belgium’s serious procurement calculation. Reports have linked Sedef to potential interest, but no official Belgian decision has confirmed a Turkish shipyard, a specific design or a contract structure.

For Brussels, the real test is not simply whether another country can offer a cheaper frigate on paper. It is whether that ship can meet Belgium’s anti-submarine warfare requirements, integrate smoothly with NATO allies, be delivered before the current fleet becomes untenable, and remain affordable through decades of operation.

Francken’s October decision will therefore be more than a contract choice. It will determine whether Belgium preserves the Dutch-Belgian naval partnership around Damen’s ASWF programme—or accepts that operational urgency, cost and industrial reality require a different course.

Dutch shipbuilder Damen is seeking hundreds of millions of euros in damages from the German government after Defense Minister Boris Pistorius canceled an order for six F126 frigates at the end of June, the company says.

The cancellation came as a complete surprise to Damen, according to the company. Pistorius justified the move by citing years of expected delays and escalating costs that created what he called "immeasurable" risks.

The original contract had been awarded to Damen. A year ago, however, Germany shifted the role of main contractor to the German shipbuilder NVL, a subsidiary of Rheinmetall, while keeping Damen involved in the project. Pistorius ended Damen's participation last month.

Germany now plans to order eight frigates from ThyssenKrupp Marine Systems instead. The price for those vessels is expected to total 11.6 billion euros, compared with projected costs of up to 18 billion euros for the six F126 frigates.

Damen has promised to carry out work on German shipyards in cooperation with German, French, and other European suppliers. Parts of the ships have already been completed for assembly but will now go unused, which the company says accounts for most of the damage.

In a letter to Pistorius and other officials, Damen's lawyer rejected the minister's reasoning, according to Der Spiegel. The lawyer stated that the contract was terminated "due to a hasty and arbitrary political decision and without legal basis." The lawyer added that there had been no "prior notification of a deadline, warning or similar reprimand.

Chancellor Friedrich Merz has informed the Bundestag parliament of a deal to buy US Tomahawk cruise missiles and station them in Germany. He said this closed a "important strategic ‌gap in our defense."

Germany has agreed to purchase US Tomahawk cruise missiles and station them in Germany, Chancellor Friedrich Merz told Germany's parliament, or Bundestag, on Thursday morning.

Merz has just returned from the NATO summit in Ankara, Turkey, also attended by US President Donald Trump and other senior US government officials.

What did Merz tell parliament after the NATO summit?

Merz was speaking in a broader address to the Bundestag touting his government's record.

As well as a string of domestic and economic priorities — like planned income tax and pension reforms working their way through parliament — he listed a final goal as moving toward "a future where our country is not susceptible to blackmail, but rather can confidently meet every threat posed to our free way of life using its own strength."

Merz said the "results" of this week's NATO summit in Turkey "exceeded all of my expectations," saying it had showed that the alliance was "united, strong and self-confident."

"On the sidelines of the NATO summit in Ankara we also agreed with the American government that Tomahawk missiles would be purchased by us and stationed in Germany," Merz said. "With this we are closing an important strategic gap in our defense. And at the same time we will work on developing our own European systems and deploying them in Europe."

DW's Berlin correspondent specializing in defense, Nina Werkhäuser, called the timing of Merz's announcement one day after the Ankara summit "surprising."

"European countries do not yet have comparable weapons of their own and are therefore reliant on US capabilities for their defense," she added.

"Developing a European system of their own is a high priority in Berlin and other European capitals, but is likely to take quite some time."

Summary: French Protectionist Push for EU Defense Fund Rebounds, Cutting Off Planned Loans

France's successful lobbying to restrict non-EU countries from accessing a major European defense fund has backfired, causing Paris to lose out on over €1 billion in low-interest loans intended for joint weapons projects with the UK.

Key Details:

• The Loan Shortfall: France requested €16.2 billion from "Safe"—the EU's €150 billion rearmament fund. However, the European Commission only approved €15.1 billion.
• The Cause: The reduction occurred because several Franco-British defense projects failed to meet strict EU eligibility rules. France itself had previously championed these exact restrictions to keep the UK out of the fund.
• Affected Projects: The disqualified initiatives involved the European missile manufacturer MBDA (jointly owned by Airbus, Italy's Leonardo, and Britain's BAE Systems). MBDA famously co-produces the Storm Shadow/Scalp long-range cruise missiles used by Ukraine.
• The "Safe" Fund's Purpose: The fund leverages the European Commission's AAA credit rating to provide member states with cheaper loans than they could get via national borrowing. It aims to rapidly boost European arms production in response to threats from Russia.

The Strict Rules That Caused the Split:

• The 65% Rule: To qualify for Safe funding, 65% of a product's value must originate within the EU single market (plus Norway, Iceland, or Ukraine).
• The Non-EU Cap: Outside contractors are restricted to a 35% value share unless their home government signs a formal Security and Defence Partnership and pays a financial contribution into the scheme.
• Failed UK Negotiations: While London signed a defense agreement with the EU, financial talks collapsed. France pressured the Commission to demand €6 billion from the UK, which was later lowered to €2 billion, but no deal was reached. Currently, only Canada has met the conditions to participate.

Industry and Diplomatic Backlash:

• Defense Giants React: Major firms like MBDA and Thales have heavily lobbied for UK inclusion, pointing out that decades of enmeshed pan-European supply chains mean Europe's most advanced weapons still rely on British expertise.
• US Criticism: Matthew Whitaker, the US ambassador to NATO, criticized the fund's "protectionist language," warning that cutting out non-EU allies like the US and Turkey harms overall allied cooperation.
• Official Positions: Despite losing the loans, French officials maintain they fully support the criteria, stating the fund's primary purpose is to foster "European preference" and develop the bloc's domestic defense industry.

Wider Fund Disinterest:

France is not alone in receiving less than anticipated. Countries like Italy and Hungary are scaling back their participation, leaving up to €18 billion in unused borrowing capacity. Highly indebted nations are hesitant to take on more debt, while lower-risk nations like Germany see no financial advantage in borrowing through the EU program. The European Commission plans to retender the leftover loans in the autumn.

To avoid FT copyright issues, this article was summarized by Gemini instead of copying the plain text.

Translated from German (Gemini):

>Ukraine and Russia use inexpensive drones in their fight against each other on a daily basis. To combat this, Rheinmetall has developed the Skynex air defense system. According to a report, the system allegedly failed during a Russian attack in April.

>The Skynex air defense system from Rheinmetall may have failed during a Russian air attack on Ukraine. As the magazine Stern reports, citing an internal Ukrainian military document, significant technical problems occurred during a drone strike. According to Stern, Rheinmetall rejects the allegations. The German defense company stated upon inquiry that the system has proven to be "extraordinarily effective and reliable" in Ukraine.

>According to the information, the internal report concerns a Russian drone attack on April 1, 2026. It states that Skynex largely failed while protecting an industrial site in western Ukraine. A Russian Shahed drone was reportedly not shot down despite multiple opportunities for engagement. Two independent sources confirmed the drone impact. According to the report, the site was protected by two Skynex systems comprising a total of eight 35-millimeter cannons, two radars, and two command posts.

>The document cites a combination of technical defects and target-tracking problems as the cause. According to the report, three of the eight guns failed within minutes due to issues including hydraulic defects, a failure of the tracking radar, and a jammed round. In the end, only two of the eight cannons were able to track the target steadily. The conclusion of the report is sobering: The system showed "low technical operational readiness," worked "extremely unreliably," and did not meet the technical specifications provided by the manufacturer.

>Rheinmetall Disagrees

>Rheinmetall declines to comment on specific operational details and dates for security reasons. A company spokesperson stated that the weapon system has proven "extraordinarily effective and reliable" in Ukraine. This has also been confirmed to the group by the Ukrainian side, they added. A German military representative stated that there are currently too few units in operation to reach a final judgment on the quality of Skynex. Furthermore, operator error could also have caused the failure, it was said.

>Skynex is a modular air defense system for the so-called short range. It was developed specifically to fend off threats such as drones, cruise missiles, artillery, helicopters, and low-flying aircraft. Each system is equipped with four 35-millimeter cannons. According to the specifications, they can fire up to 1,000 rounds per minute. They fire programmable ammunition that releases numerous sub-projectiles shortly before reaching the target.

>This is intended to make the system particularly effective against small and fast targets. Additionally, air defense using ammunition is significantly cheaper per intercepted target than air defense using missiles, especially when fighting inexpensive drones.

PARIS, July 1 (Reuters) - Dassault Aviation's (AM.PA), opens new tab CEO said on Wednesday that Airbus (AIR.PA), opens new tab had tried to kick it out of the multinational Eurodrone ‌project, confirming a separate rift between the planemakers in addition to the breakdown of plans for a European fighter jet.

Airbus declined to comment on Trappier's comments, which confirm ⁠the Eurodrone dispute after Reuters reported last month that Dassault was seeking compensation from Airbus.

"For us it is very simple. Airbus told us to get out," CEO Eric Trappier told a French Senate committee, when asked about the status of the delayed Eurodrone surveillance project.

"We don't agree ‌and ⁠so we are in discussions on why we are excluded. I can't tell you any more about where the programme is because relations are ⁠broken at a programme (level)," he said.

The Eurodrone row concerns a reduced share of work expected for Dassault after ⁠Paris decided to shelve purchases of the competitor to the U.S. Reaper being developed ⁠by France, Germany, Italy and Spain, people familiar with the matter said.

The German Navy’s F125 (Baden-Württemberg-class) frigates, which have so far been extremely poorly armed in terms of air defense, are to receive a significant capability upgrade in the future. The defense contractor Diehl Defence is currently working on equipping the ships with a total of 32 Iris-T-SLM missile cells.

​

According to Diehl, the plan is to equip each frigate with two new launchers, each capable of holding 16 missiles. As Harald Buschek, Chief Program Officer at Diehl Defence, explained today at the ILA Berlin Air Show in an interview with hartpunkt, the missile launch canisters will be permanently installed in a vertical position within the launcher. The launcher will have deflector plates on its base to prevent the hot missile steel from damaging the deck.

​

The Iris-T SLM air defense system was successfully tested for the first time last autumn during live-fire exercises from the frigate Baden-Württemberg in Andøya, Norway. The launcher used at that time had only minor modifications compared to the truck-mounted Iris-T launcher for the land-based system. Neither the supports used for the land-based system nor the hydraulics for raising the launch canisters to a 90-degree position are required on a ship. Eliminating these components saves space and weight.

​

According to Buschek, a prototype of the new launcher should be completed as early as 2027. The manager also stated that the first test firing of this configuration could potentially take place next year. Observers anticipate that the firing on the high seas could occur as early as the second quarter of next year.

​

As Buschek further explained, Diehl Defence is currently in contract negotiations with the BAAINBw (Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support) regarding the new launcher. He considers it likely that the integration of the “Iris-T SLM Naval,” as Diehl Defence apparently calls the concept, into the German Navy’s future combat management system, CMS 330, will be part of the contract. Reportedly, the F125 frigates are slated to be the first warships of the German Navy to receive the CMS 330. During the Iris-T SLM test firing last year, the system was not yet directly connected to the CMS 330.

​

In addition to launching the Iris-T SLM from the new launchers, integration into Lockheed Martin’s Vertical Launch System Mk 41, which is also used by the German Navy, is a possible future option. As Buschek confirmed, discussions are underway with industry partners regarding this topic.

​

​

> FRANKFURT, June 13 (Reuters) - France could exit the Franco-German tank project MGCS, the CEO of Rheinmetall (RHMG.DE), opens new tab, 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 (TCFP.PA), opens new tab 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.

> A French government ‌source ⁠close to the matter said the project remains important for France and Germany as well as for KNDS. The source spoke on the condition of anonymity to discuss a sensitive matter.

> 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.

> German defense company Helsing armed U.S. soldiers with HX-2 drones for drills in Lithuania, where they successfully spotted and struck targets.

> Why it matters: This could be a sign of Helsing breaking into American markets. It's also a symptom of European rearmament.

> Driving the news: At least one HX-2 launch was visible in the Army's own footage from Project Flytrap, a counter-drone exercise at Pabradė Training Area.

> In a separate photo, Gen. Christopher Donahue, the head of U.S. Army Europe and Africa, can be seen huddling over an HX-2 transport box.

> What they're saying: "Helsing was at Flytrap in force with their hardware and software engineers, as were many other companies," Alex Miller, the Army's chief technology officer, told Axios.

> "The HX-2 was originally used as a one-way attack and counter-drone system," he said.

> "But users that I spoke with informed me they were using it as a recon platform and a loitering munition, because it was able to find and track targets with onboard computer vision and fly even under jamming."

> Context: Helsing's 17 drones notched 15 kills and two near-misses.

> Zoom out: A total 200 drone flights were conducted at this latest Flytrap. The exercise started as a means to think through counter-drone capabilities for maneuver units.

> Catch up quick: Helsing, founded in 2021, is closing in on a $1.2 billion funding round. The Munich-based company would be valued at $18 billion.

PARIS/BERLIN, June 11 (Reuters) - Dassault Aviation (AM.PA), opens new tab is seeking compensation from Airbus (AIR.PA), opens new tab over procurement changes ‌to the delayed Eurodrone programme, three people familiar with the matter said, inflaming tensions after the collapse of their joint fighter jet project as Europe struggles to cooperate on defence.

The previously unreported rift centres on a reduced share of work expected for Dassault following a French decision to shelve purchases of the Eurodrone, a competitor to the U.S. Reaper being developed by France, Germany, Italy and Spain. It is one of three flagship Franco-German defence projects backed by leaders at a 2017 summit and now ⁠mired in delays or disagreement, alongside the FCAS fighter halted by Berlin this week and the delayed MGCS battle tank.

Paris has not formally left the 7-billion-euro Eurodrone programme but its latest defence bill removes funding for purchases of systems up to 2035, citing the arrival of cheaper alternatives more adapted to high intensity warfare.

Under Europe's system of economic horse-trading known as "geo return," the suspension of purchases is expected to mean less work allocated to French companies through Dassault.

Paris-based Dassault wants to be compensated by project leader Airbus for part of any lost investment, the sources said.Dassault declined comment and referred questions to Airbus. Airbus said it had nothing to add to comments made in April by CEO Guillaume Faury that the Eurodrone project was "very likely to move forward with a slightly different setup," following a change of views by ‌the ⁠French defence ministry.

France's defence ministry did not immediately respond to a request for comment.

Dassault Aviation is in charge of flight control and mission communication systems for Eurodrone - a "Medium Altitude Long Endurance" drone designed to reduce European reliance on U.S. and Israeli technology.

The four launch nations have ordered a total of 60 drones. Entry into service has slipped from an original 2025 target. First flight is now set for 2027.

In 2019, French senators described ⁠the Eurodrone as heavy and expensive, blaming disagreements over specifications. France's air force has voiced interest in a lighter drone called Aarok being developed by French startup Turgis & Gaillard.

Relations between Dassault and Airbus - long divided by their contrasting roots in French private and public industry, respectively - have deteriorated sharply this year.

Failure to ⁠agree on governance of the next stage of FCAS led to the collapse of the core fighter jet project, but unlike FCAS the Eurodrone is in advanced development so the immediate contractual consequences of any divorce are very different.

By coming to a head at the same ⁠time, the overlapping disputes add fresh tensions to an already acrimonious divorce between two of Europe's critical defence suppliers.

A person familiar with the matter said discussions over the two Franco-German programmes involving Dassault and Airbus were separate on paper but "psychologically and politically" linked.

> The Latvian National Armed Forces (NBS) have announced that fighter jets participating in NATO’s Baltic Air Policing mission shot down a foreign unmanned aerial vehicle (UAV) in Latvian airspace over the Latgale region after it entered Latvia as a result of Russian electronic warfare activities.

> At the same time, the National Armed Forces reported that the airspace threats previously announced in the municipalities of Alūksne, Ludza, Balvi, and Rēzekne have ended.

> The National Armed Forces, together with NATO allies, continuously monitor Latvian airspace to ensure an immediate response capability to any potential threat. The Armed Forces have also strengthened air defence capabilities along the eastern border by deploying additional units.

> As Russia’s war of aggression against Ukraine continues, similar incidents involving foreign unmanned aerial vehicles entering or approaching Latvian airspace remain possible.