BRUSSELS - State control and European-based jobs are the main sticking points in a planned merger of Eads, the Franco-German company producing Airbus planes and BAE Systems, Britain's biggest defence contractor.
The British parliament on Monday (24 September) launched an inquiry into the would-be €35-billion-merger to create the world's largest defence and civil aviation firm."The merger of two such large defence contractors would have a significant and strategic impact on their relationships with UK, US and European governments. It could also radically alter the defence industrial base in these countries," said the defence committee in the British parliament, according to the Telegraph.
Some hurdles to overcome but this may just go ahead anyway (such is the EU) and would help in streamlining EU procurement making Ashton's EDA job easier.
But whats the necessity for such a merger?
http://euobserver.com/defence/115686
EU countries to reduce dependence on US military
The pressure for Europe to enhance its own military is also coming from Washington. President Barack Obama last year announced a new military strategy that shifts focus away from Europe and onto China, North Korea, and Iran - the so-called "Pacific Century."
Previous calls by the US for Europe to become more independent militarily have not always been heeded, according to the EDA.
"We have to take [the new US strategy] seriously. The US has strategic interests elsewhere that are compelling, and we need to show that we can do things like Libya by ourselves," stated Arnould back in January.