WRITTEN QUESTION P-3603/97 by Pedro Marset Campos (GUE/NGL) to the Commission (6 November 1997)

Subject: The future of the European aerospace industry

After the crisis of the last few years the aerospace sector is clearly expanding. The turnover worldwide in the last twenty years was around US$ 400 billion. In Europe alone, turnover is expected to be US$ 18 billion by the year 2003.

In most countries this sector represents the most substantial concentration of advanced technology, as well as one of the main sources of high-quality employment.

However, these promising prospects could be destroyed by the recent merger between Boeing and McDonnell Douglas, which is seriously jeopardizing this sector in Europe.

Has the Commission evaluated the consequent loss of competitiveness of the European aerospace industry and the impact the merger may have on employment and technological development?

Can the Commission also say to what extent the Airbus projects A3-XX and FLA, which have reached the decision-making stage, may be jeopardized by the creation of this aerospace giant?

Finally, can the Commission offer a timetable for the decisions to be taken on the completion of the Airbus projects?

Answer given by Mr Bangemann on behalf of the Commission (9 December 1997)

The importance of the aerospace industry for Europe is outlined in the Commission communication 'The European aerospace industry facing the global challenge' adopted on 24 September 1997 ((COM(97) 466 final. )).

During the course of the 4th framework programme ((COM(93) 459. )) an aeronautics task force was set up by the Commission. This initiative was designed, in part, to increase industrial competitiveness through ensuring the optimal exploitation of the framework programme in this area. The Commission's proposal for the 5th framework programme ((COM(97) 142, COM(97) 553. )) again recognised the importance of aeronautics in that the proposal includes a key action entitled new perspectives in aeronautics within the thematic programme promoting competitive and sustainable growth.

The expected impact on competition of the merger between Boeing and McDonnell Douglas is analysed in detail in the Commission decision on the merger of 30 July 1997 which will be published in the Official journal in the coming weeks.

As far as the possible development by Airbus of the A3XX and the FLA is concerned, the Commission will closely follow progress. Nonetheless it is not the Commission's role to propose, much less decide on, the development of new aircraft programmes. These should be based purely on commercial and economic grounds and decided by those with a direct stake in the success or failure of the venture. Notwithstanding this, the Commission recognises that the restructuring of Airbus Industrie is a matter of priority and that in view of the growing importance of dual-use technologies, civil and defence production in sectors such as aircraft development should not be considered as separate issues.

In its communication adopted on 24 September 1997, the Commission stressed that the European aerospace industry is in urgent need of consolidation and restructuring if it is not to be left behind in international competition. Europe will need to provide the context in which European aerospace firms can restructure and flourish. This is why the Commission called on Member States to support the thrust of the communication, recognise the necessary urgency, and give their backing to the Community accompanying measures listed in the communication in order to facilitate and encourage the restructuring process.