By Terrence Guay
The writer examines the level to which the ecu Union and its regulations impact Europe's defence undefined. He means that the top of the chilly conflict and financial globalization are significant elements pushing defence commercial concerns to the neighborhood point. The booklet describes institutional struggles among the eu fee, Council and Parliament during this coverage region. The interdisciplinary procedure addresses political economic climate, establishment construction, ecu safety and defence, transatlantic relatives, business restructuring, and the effect of defence zone curiosity groups.
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Additional resources for At Arm’s Length: The European Union and Europe’s Defence Industry
Money saved from military cuts and the sale of state companies are key to France's hopes of qualifying for EMU. However, implementing the privatization has been wrought with difficulties, particularly a concern that French industrial assets would fall into the hands of foreigners. Lagardere (the group that owns the defense electronics firm Matra) offered the highest bid for Thomson when the company was put up for sale in late 1996. But the government decided to hold a new auction after France's privatization commission rejected Lagardere's plans to sell Thomson's civilian electronics businesses to the Korean firm Daewoo.
Defense budgets may be subject to further cuts if governments remain committed to EMU. With the treaty establishing the WEU up for renewal in 1998, European states will soon have to address defense cooperation. A shift in European defense policy coordination from being largely intergovernmental to a more institutionalized approach (which could include the creation of a common armaments procurement agency) will have a direct bearing on industrial restructuring. Finally, industrial consolidation in the US has produced a handful of huge and highly competitive defense firms, and the proliferation of technologies will continue to improve the competitiveness of arms suppliers in developing countries.
40 There is also disagreement among the Airbus members over the extent to which the consortium should get involved in military aircraft 40 At Arm's Length productionY The British and Germans believe Airbus should confine itself to building military transport aircraft, while Aerospatiale would like Airbus to become involved in a full range of aerospace activities (including fighter planes and missiles) so as to better compete with Boeing/McDonnell Douglas. The French are also less enthusiastic about British and German plans to transform Airbus from its current status (whereby profits and losses accrue to its share holding companies) into a limited company that would take over the manufacturing facilities of its members.