Energy News  
EADS Strains Franco-German Ties

French Prime-Minister Dominique de Villepin is causing quite a stir. Photo courtesy of AFP.
by Stefan Nicola
UPI Germany Correspondent
Berlin (UPI) Jun 23, 2006
There may be a diplomatic rift in the pipeline between Germany and France after French Prime Minister Dominique de Villepin hinted that he would like to expand his government's influence at European air and space company EADS.

De Villepin, in a parliamentary debate Wednesday, contested the current power structure at Euopean Aeronautic, Defense & Space, or EADS, shortly after the words of Finance Minister Thierry Breton, who, speaking in reference to a shareholder's pact over EADS' initial listing, had earlier said that "some people now consider that (the shareholder's pact) does not give enough power to the state, as it is the industrial groups that have operational control."

EADS' shares are owned by the French and Spanish governments and German-American company DaimlerChrysler. The company, which was founded in 2000 through the merger of Aerospatiale-Matra of France, Construcciones Aeronauticas SA of Spain, and DaimlerChrysler Aerospace of Germany, is led by two chief executive officers, Frenchman No�l Forgeard and German Tom Enders.

The company has been hit by a management crisis after it surfaced that Airbus, which is 80 percent owned by EADS, will have to delay delivery for its new A380 super-jumbo by six to seven months. After the bad news, Airbus shares fell by 25 percent in less than a week.

De Villepin and his followers are angry at what they likely see as bad management.

Paris will take "all necessary actions for EADS to guarantee its production deadlines and supply clients in the best of conditions," he said.

De Villepin in the debate also fired a round at the Socialists responsible for the shareholder's agreement, branding them "cowards" when they questioned the role of Forgeard, who has been accused of knowing about the delivery problems before he sold his stock portfolio in March, making a profit of more than $3 million.

After de Villepin's charge of cowardice against Francois Hollande, head of the Socialists, the entire faction left the National Assembly and threatened to boycott Wednesday's session unless the prime minister apologized, which he has since done.

The conflict over how to handle the power structure at EADS is ongoing, however; it is clear that any change will require the agreement of the Germans, and that a lone course by Paris will not be accepted.

Breton later tried to calm tensions, saying in a radio interview that Germany and France were by no means adversaries.

"If we see possibilities to better the common project together, then we will propose those in unison," he said.

The parliamentary conflict in France proves how heated emotions are when it comes to EADS.

"It really is a topic that has entered domestic politics in France," Martin Koopmann, Franco-German expert at the German Council of Foreign Relations, a Berlin-based think tank, told United Press International via telephone. "It is part of the ongoing struggle between de Villepin and (Nicholas) Sarkozy for the presidency."

De Villepin was seen as France's next president until he tried to enact a labor law, known as the CPE, giving companies more power to hire and fire people. Mass protests caused President Jacques Chirac to rescind the law and left de Villepin's reputation seriously damaged.

The Clearstream affair, France's Watergate-like scandal, has further hurt de Villepin after allegations surfaced that he ordered a secret probe into Sarkozy, who has been falsely accused of running secret offshore bank accounts.

He has since tried to stage a comeback, but observers say the recent efforts are only a prelude to his sure-fire domestic downfall, as he is doomed to lose next year's elections to either Sarkozy or Socialist lawmaker Segolene Royal.

The Germans will sit back and not be worried by the current discussion over EADS, Koopmann said.

"In the end I don't think it will damage the political relations between France and Germany. Berlin knows that most of this is based on politicians trying to profit for the elections."

Source: United Press International

Community
Email This Article
Comment On This Article

Related Links
- The Military Industrial Complex at SpaceWar.com
Learn about the Superpowers of the 21st Century at SpaceWar.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


Raytheon Teams Up With Nordics For Estonia Missile Bid
Tallinn (AFP) Jun 15, 2006
The US defence firm Raytheon has formed a team with two Scandinavian companies to lodge a bid for the contract to supply anti-aircraft missiles to the Estonian defence ministry. "Raytheon has joined with Kongsberg Defence and Aerospace, and Ericsson Microwave Systems to compete for the Estonian Very Short Range Air Defence Missile System, Raytheon said on its website.







  • When Gold Becomes A Catalyst
  • Diamond By-Product Of Hydrogen Production And Storage Method
  • London To Change Laws Blocking Installing Small Solar And Wind Systems
  • Discovering How To Focus On Tiniest Of The Very Small

  • European Consortium To Build Uranium Enrichment Plant In US
  • IAEA Studies Enrichment Compromise But US Remains Unimpressed
  • Cheney Warns Congress Against Delaying Indian Nuclear Deal
  • French Govt Says Hazardous Nuclear Waste Must Be Stored Underground

  • ESA Picks SSTL To Develop Atmospheric CO2 Detector
  • Faster Atmospheric Warming In Subtropics Pushes Jet Streams Toward Poles
  • Atmospheric Warming Expanding The Tropics
  • In The Baltics Spring And Smoke Is In The Air

  • Tropical Forest CO2 Emissions Tied To Nutrient Increases
  • Chechen Environment In Danger Say WWF And Russian Officials
  • Midsummer Fest Bonfires Banned In Estonian Forests
  • NASA To Help US Forest Service Test UAV For Wildfire Capabilities

  • Conservation Offers Financial Rewards For Cattle Ranchers
  • A Modern Day Noah Saving The Fruits Of A Green World
  • Work On Biodiversity Doomsday Vault Begins In The Arctic
  • More Than Drought Affecting Wheat Yields

  • Mobile Phones Provide Another Reason To Hate SUVs
  • Self-Powered Sensors To Watch Over Hydrogen Cars
  • Activists Press Ford On Environmental Policies
  • Prototype For Revolutionary One-Metre Wide Vehicle Is Developed

  • Globemaster Airdrops Falcon Small Launch Vehicle
  • Terma Selected To Manufacture Key Components Of F-35 JSF
  • CENTAF Releases Airpower Summary
  • Giant NASA Balloon Lifts Of From Esrange Space Center

  • Could NASA Get To Pluto Faster? Space Expert Says Yes - By Thinking Nuclear
  • NASA plans to send new robot to Jupiter
  • Los Alamos Hopes To Lead New Era Of Nuclear Space Tranportion With Jovian Mission
  • Boeing Selects Leader for Nuclear Space Systems Program

  • The content herein, unless otherwise known to be public domain, are Copyright 1995-2006 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA PortalReports are copyright European Space Agency. All NASA sourced material is public domain. Additionalcopyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement