BERLIN, March 27 (Reuters) - German Chancellor Friedrich

Merz said on Friday he is doing everything in his power to

salvage the crisis-hit ‌FCAS fighter jet programme with France

and Spain and to generally foster greater cooperation within

Europe's defence industry.

"The future of German industry is now at stake, and this

industry is heavily dependent on the defence sector," Merz told

a conference hosted by the FAZ newspaper, adding that he would

"fight until the very last moment" for joint European projects

like FCAS.

The chancellor said two moderators - one from France, one

from Germany - have been appointed to come up with ways to

secure the future of the project by the end of next month.

The plans to develop a futuristic air combat system are

hanging by a thread amid a public dispute over control between

France's Dassault Aviation and Airbus, which represents Germany

and Spain in the 100-billion-euro project.

The chancellor also said that the German government would

purchase a stake in KNDS, the Franco-German maker of Leopard

tanks, as it seeks to preserve influence after a planned listing

later this year valuing the company at 20-25 billion euros.

Reuters reported in February that Berlin was preparing to buy a

minority stake in KNDS of at least 25.1%, citing people familiar

with the matter.

(Reporting by Rachel More and Alexander Huebner; Editing by

Chizu Nomiyama )