PARIS/BERLIN, Nov 21 (Reuters) - Germany and France are

piling pressure on industrial leaders to find a solution for the

troubled joint fighter jet project FCAS - or SCAF - by

mid-December, two sources briefed on the matter told Reuters on

Friday.

Speaking on condition of anonymity, one of the sources said

the CEOs of the companies involved were meant to agree on a deal

by December 18.

France's Dassault, Airbus and Indra

- the latter two representing Germany and Spain

respectively - are among the main companies participating in the

Future Combat Air System (FCAS) to replace France's Rafale and

German and Spanish Eurofighters with a next-generation fighter

from 2040.

Initiated in 2017 as a model for European defence

collaboration, the project has been plagued by delays and

infighting over workshare and intellectual property rights

between France and Germany and their national industries.

Options now under discussion include fully terminating the

project or significantly scaling it down by eliminating

important elements including the development of the joint

fighter jet, according to sources familiar with the matter.

German Chancellor Friedrich Merz and French President

Emmanuel Macron aim to decide by year-end whether to proceed

with the project or pursue an alternative approach.

"The political process has repeatedly passed the buck from

the chancellor and president to the ministers, then back to the

ministries and procurement agencies," an industry source said,

expressing frustration.

"The only real change is that French politics has become

more unstable. Now, industry is supposed to find common ground

that has long since disappeared from the political process."

Berlin has blamed Dassault for blocking the programme's next

phase by seeking sole leadership of the project. Sources said

France had demanded a workshare of some 80% but Dassault denied

this.

The second source noted that the countries' air chiefs had

been tasked with checking whether national requirements for the

future fighter jet converge, and underscored that convergence

had been established at military level.