Local view for "http://purl.org/linkedpolitics/eu/plenary/2007-11-13-Speech-2-384"
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"en.20071113.35.2-384"2
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"Madam President, Commissioner, to many observers, the WTO dispute between Airbus and Boeing is starting to sound like a never-ending saga. I am happy that you have at least shown us a light at the end of the tunnel. In my view, in order to be able to evaluate the current situation and provide a policy recommendation on how we should go forward, it is worth reviewing the background to the dispute once again, together with the economic development of these two aviation giants.
The origins of the current situation lie primarily in the massive increase in international aviation, accompanied by strong competition between aviation companies, since the early 1990s. May I, at this juncture, expressly pay tribute to the Commission once again for what it has achieved here. Without the establishment of the common market for the aviation industry in the 1990s and the Europeanisation of agreements with overseas countries, the competitiveness – and thus the success – of Europe's aircraft companies would have been impossible to achieve.
The competition was tough, however, and some aircraft companies went to the wall. The demand for ever more economical, safer, larger, faster and more modern aircraft assumed dimensions in the 1990s which ultimately left only two well-performing companies in the running: Airbus and Boeing. Real alternatives to them now only exist in the regional and business aviation sector. I am proud that Airbus has managed to reinvent itself as a European company.
For the European economies, aviation is an immensely important factor, without which economic life as a whole would quickly fall apart. Against this background alone, the developed economies have a massive interest in ensuring that well-performing air transport options are available to them. The aviation industry was compelled to recognise this, but was unable to keep pace. Above all, it lacked capital and it lacked the safeguards that would enable it to take on the enormous risks and massive expenditure associated with the development process.
As the dualism between Airbus and Boeing intensified in the industry, competition between the two inevitably increased as well. During periods of weak demand on the world economy, the price war between Airbus and Boeing has been, and remains, intense. To ensure that this contest did not spill over into a competition to secure the largest share of State aid, a groundbreaking agreement was forged early on, in 1992.
In 2004, when times were hard for Boeing, the US broke that agreement and appealed to the WTO. The EU did not hesitate for long and sought the same remedy. Boeing also brought the case before the WTO. The WTO rules are very simple; we are familiar with them and they have been debated here in this Chamber.
In my view, both sides now need to get back around the negotiating table. Both sides need to admit that their aircraft industry needs subsidies. That is especially true if we want to master the emerging problems of CO
avoidance, protection against noise pollution and the increase in air traffic. We are moving into new technological territory here, and the risks for capital providers are immense. I would like to caution the EU's representatives against taking Airbus's current strength as a pretext for tightening the screws on Boeing and the US too zealously.
Less than a year ago, we would have had to hold a very different debate. That is why both sides now need a viable strategy. Years of dispute and games of hide-and-seek will not take our technology sites forward. However, moving forward is essential. The key word – CO
has already been mentioned.
I would ask the Commission not to misunderstand what I am saying. It is not about letting the US pull the wool over our eyes about hidden military subsidies and ensuing cross-subsidisation. Let us encourage the Americans to play an honest game. I am confident that we can then reach a mutually acceptable solution."@en1
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