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Cancelling EADS Contracts Would Harm German Interests

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by Staff Writers
Frankfurt (AFP) Feb 06, 2007
If the German government were to cancel its defence contracts with European aerospace giant EADS, it would hurt German jobs, the German co-chairman of EADS, Thomas Enders, warned in a newspaper interview published on Tuesday. Responding to a veiled threat by Berlin to review its defence contracts should the restructuring of EADS's plane-making unit Airbus hit German workers more than French workers, Enders told the daily Frankfurter Allgemeine Zeitung that such a tactic would backfire.

"The German government's defence contracts with EADS are carried out almost exclusively in Germany, which helps German jobs and lots of small suppliers," Enders said.

"We don't actually have too much of defence industry here," he added.

Asked by the newspaper whether that meant cancelling contracts would harm Germany, Enders replied: "I'd see it that way. I don't know how that would help boost German interests."

On Sunday, economy minister Michael Glos said Berlin would "review" its contracts with the European Aeronautics Defence and Space Company (EADS) if the restructuring of its Airbus subsidiary hit Germany more than other countries.

Berlin has since sought to play down Glos' comments.

"The comments have been overinterpreted a little," government spokesman Thomas Steg said on Monday. "We're expressing clearly our interests, but we're not making any threats."

Airbus, plagued by production problems in its A380 superjumbo program, is soon to unveil drastic cost-cutting plans, with German unions concerned that up to 8,000 German jobs could be on the line.

Airbus employs a total 23,000 people on a full-time basis at seven sites in Germany, plus a further 6,300 part-time.

Enders refused to be pinned down on the possible number of job cuts in Germany.

"The decisions have not been taken yet," he said.

But he added: "Some of the horror scenarios that have painted recently simply don't match reality ... Our order books are full. Our plants, the German ones too, are booked up for years."

Enders said it was his task as German co-chairman to ensure that "unavoidable hardships are distributed fairly on the different national shoulders. And as far as German industrial interests are concerned, the German co-chairman and DaimlerChrysler are there to make sure they're not left by the wayside."

Nevertheless, the co-chairman insisted that his primary task was to bring the company forward.

Future Airbus models could, for example, be more closely tied with specific sites.

"It doesn't make sense for the final assembly to take place at several different sites," Enders said.

Source: Agence France-Presse

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Critics Slam DOD Budget Plans
Washington (UPI) Feb 05, 2007
The new U.S. defense budget for the coming fiscal year unveiled Monday has already attracted its share of critics. According to a panel report from the Security Policy Working Group, the defense budget is expected to be unrealistic and will all but fail. The Security Policy Working Group is an initiative established by the Proteus Fund, an organization dedicated to promoting democracy and social justice. The goal of the SPWG project is to analyze and reform security policy in the United States, as well as to expand the public's understanding of such issues.







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