According to HOAR, Britain is facing a potential loss of 6,000 defense jobs and a delay in the production of homebuilt fighter jets for ten years due to a dispute with Germany. The German government is blocking a multi-billion deal to sell 48 Typhoon jets to Saudi Arabia, and if the order is blocked, BAE production lines in the UK could close immediately.

Germany's veto on the deal

Germany, which has a significant stake in the Eurofighter Typhoon program, is refusing to approve the sale to Saudi Arabia due to concerns that the jets could be used to bomb Yemen. As a result, France is now a potential contender for the deal, with the Saudis considering purchasing their Rafale fighter instead.

Diplomatic battle ahead

Sources reveal that efforts led by National Security Adviser Sir Tim Barrow to resolve the dispute with Germany are currently at a standstill. A deadline for the deal looms next month, and there is growing concern that it may not be resolved in time.

Impact on UK defense industry

The UK plans to phase out over 100 Typhoon jets from 2025, to be replaced by US-made F-35B Lightnings. However, the country's 4th generation GCAP fighter, being developed in partnership with Japan and Italy, is not expected to be ready until at least the middle of the 2030s. This poses a significant risk to the UK's combat air industrial base, with potential closure of Typhoon production lines and delayed GCAP production.

Job losses and supply chain impact

More than 6,000 British workers are directly employed by the Typhoon program, with an additional 28,000 jobs in the supply chain. The potential loss of the deal could have a devastating impact on the workforce and the wider defense industry.

Exploring alternative markets and future possibilities

Despite the current dispute, there are ongoing efforts to explore other potential export markets for the Typhoon jets. Additionally, it is noted that in the event of a major conflict, the UK would have the capability to restart or increase Typhoon production within the country.

UK's commitment to Saudi Arabia

The UK government has reiterated its commitment to maintaining a strategic defense relationship with the Kingdom of Saudi Arabia, despite the challenges posed by the current situation.