Hypersonic missile-killer race heats up in Europe amid Russia, China threat

Europe is moving toward a decisive moment in its effort to build a homegrown shield against hypersonic missiles, with two rival defense projects now facing a forced choice: merge or compete for survival.

European Union countries and the European Commission are preparing to back only one EU-made hypersonic interceptor program, according to a Euractiv report. 

The decision is expected to be reflected in the Commission’s 2026 work program for the European Defence Fund, the bloc’s main vehicle for financing joint military research and development. 

The official funding proposal is due to be published later this week.

Hypersonic missile-killer race 

Until now, Europe has pursued two parallel projects aimed at countering hypersonic threats, weapons that travel faster than five times the speed of sound and can maneuver unpredictably, complicating interception. 

The limited size of the European market, however, has increasingly made it difficult to justify funding both efforts.

One project, known as HYDEF, the European Hypersonic Defence Interceptor, was launched in 2022 and is led by Spain’s Sener Group, with Germany’s Diehl Defence acting as the system’s technical coordinator. 

HYDEF is designed to intercept hypersonic missiles in flight and has been positioned as a cornerstone of Europe’s future air and missile defense architecture.

The rival program, HYDIS (Hypersonic Defence Interceptor System), was launched a year later under MBDA’s leadership. Airbus, BAE Systems, and Leonardo jointly own this French missile manufacturer. 

MBDA is Europe’s largest missile maker and a dominant supplier of air defense systems to several NATO countries.

Under the Commission’s current plan, only one interceptor project would receive EU funding in the future, leaving the two consortia with limited options. 

They could merge into a single program, a move that would likely trigger intense negotiations over leadership, work share, and intellectual property, or compete head-to-head for the funding, with one emerging as the sole winner.

Even a merger would not necessarily resolve political and industrial tensions, one official told Euractiv, noting that both Diehl and MBDA would want to lead development of such a strategically important capability. 

Russia and China threat

Similar Franco-German industrial rivalries have already complicated other flagship defense programs. One of them is the Future Combat Air System, a next-generation fighter initiative whose development has been slowed by disputes between companies and governments.

The Commission is expected to give industry a deadline, likely later this summer, to clarify how it intends to proceed.

The stakes extend well beyond a single weapons program. Hypersonic interceptors are seen as a critical element of Europe’s long-term security, particularly as Russia and China invest heavily in hypersonic missiles and as the United States races to strengthen its own defenses. 

Decisions made now could shape Europe’s missile defense landscape for decades.

The rivalry has been building for years. In 2022, the Commission surprised many in Brussels and Paris by awarding the initial hypersonic interceptor research contract, worth about 110 million euros, to the Sener-Diehl team instead of MBDA, which was widely viewed as the favorite. 

MBDA later challenged the decision legally and pressed French political leaders for a second chance.

In 2023, the Commission started the HYDIS project and gave it directly to MBDA. They did this to encourage competition and reduce technological risks by using a “dual-sourcing” strategy.

That rationale now is giving way to budgetary and strategic realities.