Hard to know how biased the sources providing the "internal documents" to Politico are.
Looking out to the current and future threat picture. The thinking that Germany should stick to tactical jets (F-35, Saab FCAS) with their limited range & payload, doesn't seem the best fit for a "middle power" which will have the approximate equivalent defence budget to UK & France combined (so reported). Where GCAP (or similar F/X-AA, ROK 6th Gen), to provide deep penetrating strike (range, payload). I.e. aiming to be able to hit the infrastructure supporting the warmachine, rather than at the leading edge of the hostile territory - SEAD/DEAD, OCA, DCA.
There is already a move for infrastructure to be built underground, where the payload of a flight of GCAPs with larger & sequential warheads would be relevant. Next Generation Penetrator (NGP) GBU-76/B, similar type of munition developed by GCAP weapons consortum (no reporting on this simply an idea of potential unique utility of a super heavy fighter / medium bomber airframe vs tactical jet).
Given the move to develop deep precision strike in Europe (large ballistic & boost glide conventinally armed missiles), with Germany included in these projects. There is a recognition of the need for deep strike. Though if these "internal documents" outline the boundries of the considerations then it seems somewhat short sighted on the role of fast jets (or lack there of) for this.
"The paper says that experience gives reason to expect BAE to dominate the new program in a way that would be incompatible with cooperation “on an equal footing.” "
Equal footing in terms of industrial work share,some argument might be made for substanital work share (10-20%? making up numbers), but equal footing seems an unrelastic expectation to be bringing to the table.
When it comes to overall control & IP, then it really does seem an unrealistic position to be coming at it from - when you're not a founding party (prior investments into the project), the development is rather far along (final design freeze reported 2027/28) & don't have the equivalent level of expertise in various technical areas - LO & materials (BAE, MHI), engine (RR, MHI), EW (leonardo UK & Italy) etc.
One consideration not mentiond would be - to partner with Sweden, Spain for developing a light/medium 6th gen. And then to be a purchasing customer (only) for GCAP heavy fighter/medium bomber. Providing a mixed fleet of high-low. The other route being joining GCAP as a 10-20% partner, and developing own large CCA for the "high-low" mix. Though this doesn't provide a manned fighter at the lower end for airpolicing duties after 4th gen is retired.