buglerbilly
02-07-10, 02:10 PM
By JULIAN HALE
Published: 1 Jul 2010 17:41
BRUSSELS - Pier Francesco Guarguaglini, the President of the AeroSpace and Defence Industries Association of Europe (ASD) called for more European cooperation and coordination in the area of defense here July 1. He said that the need for this is "particularly acute in the area of defense, where the current budgetary crisis should act as a wake-up call. If Europeans cannot increase their level of defense expenditure, they should at least do more together and make more efficient investments," he added.
"This requires major changes in military procurement behavior, and better use of existing instruments such as the European Defence Agency, dual-use research and Lisbon treaty arrangements."
Guarguaglini also expressed concern that defense R&D might be a victim of defense budget cuts in many EU member states and that countries might fall back on national solutions as a "quick, short-term answer to budgetary dilemmas". "This evolution would result in a further fragmentation of the EU defense market, which would in turn represent a threat to Europe's defense technological and industrial base. The end result would be a sub-critical industrial and technological mass resulting from a fragmentation of demand," he said. For 2009, the volume of R&D investment fell by .75 percent, accounting for 10.25 percent of turnover.
Guarguaglini also expressed concern about the "dramatic fluctuations" in the euro-dollar exchange rate in recent years. Speaking at a press conference as the ASD unveiled its economic results for 2009, he said that big fluctuations "make long-term investment decisions more complicated". "What we need is a stable euro, ideally around the $1.2 dollar for €1 exchange rate," he added.
With regard to the key economic data for 2009, Europe's aeronautical sector (including both civil and military activities) recorded a turnover of €100 billion, up from €97.3 billion in 2008. Employment in the sector remained stable at 466,700 employees.
In 2009, the European space industry posted final sales worth €5.5 billion, slightly receding from 2008, but still well above the average values of the decade (€4.9 billion). Direct employment figures reached 31,370, up from 30,300 in 2008.
For the land and naval defense sector, turnover rose above €46 billion and employment in the sector reached more than 216,000 employees.
For the European aerospace and defense industries as a whole, turnover was up 8.3 percent at €155.4 billion, employment grew by 4.7 percent to almost 715,000 employees.
Published: 1 Jul 2010 17:41
BRUSSELS - Pier Francesco Guarguaglini, the President of the AeroSpace and Defence Industries Association of Europe (ASD) called for more European cooperation and coordination in the area of defense here July 1. He said that the need for this is "particularly acute in the area of defense, where the current budgetary crisis should act as a wake-up call. If Europeans cannot increase their level of defense expenditure, they should at least do more together and make more efficient investments," he added.
"This requires major changes in military procurement behavior, and better use of existing instruments such as the European Defence Agency, dual-use research and Lisbon treaty arrangements."
Guarguaglini also expressed concern that defense R&D might be a victim of defense budget cuts in many EU member states and that countries might fall back on national solutions as a "quick, short-term answer to budgetary dilemmas". "This evolution would result in a further fragmentation of the EU defense market, which would in turn represent a threat to Europe's defense technological and industrial base. The end result would be a sub-critical industrial and technological mass resulting from a fragmentation of demand," he said. For 2009, the volume of R&D investment fell by .75 percent, accounting for 10.25 percent of turnover.
Guarguaglini also expressed concern about the "dramatic fluctuations" in the euro-dollar exchange rate in recent years. Speaking at a press conference as the ASD unveiled its economic results for 2009, he said that big fluctuations "make long-term investment decisions more complicated". "What we need is a stable euro, ideally around the $1.2 dollar for €1 exchange rate," he added.
With regard to the key economic data for 2009, Europe's aeronautical sector (including both civil and military activities) recorded a turnover of €100 billion, up from €97.3 billion in 2008. Employment in the sector remained stable at 466,700 employees.
In 2009, the European space industry posted final sales worth €5.5 billion, slightly receding from 2008, but still well above the average values of the decade (€4.9 billion). Direct employment figures reached 31,370, up from 30,300 in 2008.
For the land and naval defense sector, turnover rose above €46 billion and employment in the sector reached more than 216,000 employees.
For the European aerospace and defense industries as a whole, turnover was up 8.3 percent at €155.4 billion, employment grew by 4.7 percent to almost 715,000 employees.