Airbus CEO criticizes German arms export rules

Thu Sep 11, 2014 1:56pm EDT
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By Sabine Siebold

BERLIN (Reuters) - The chief executive of aerospace and defense group Airbus (AIR.PA: Quote) criticized the German government on Thursday for its restrictive arms export policy, saying it could deter international cooperation on future defense projects.

"When it comes to defense and security policy, what the German government says and what it does are two very different things," Tom Enders said in a statement provided to Reuters.

German economy minister Sigmar Gabriel, who plans to tighten the rules on arms exports to security-sensitive areas, last month told the country's arms industry that its future lay in consolidation with European peers.

However, he is reportedly skeptical about a planned tie-up of German tank and armored vehicles maker Krauss-Maffei Wegmann with French rival Nexter, instead preferring an all-German partnership between KMW and Rheinmetall (RHMG.DE: Quote).

In addition, Berlin is blocking a contract for European multinational missile maker MBDA to supply Qatar with the Milan ER anti-tank missile by not giving approval for parts to be transferred from Germany to France, defense sources told Reuters. The contract hold-up was earlier reported by French daily Les Echoes.

Airbus owns 37.5 percent of MBDA, and other shareholders are Finmeccanica SIFI.MI and BAE Systems (BAES.L: Quote).

"While there are lofty speeches being made that talk about more cooperation and consolidation in European defense, the axe is being swung at decades of Franco-German cooperation," Enders said.

Enders, a former German defense ministry planner and paratroop reservist who has overhauled Airbus to reduce French and German state influence, has previously said tighter export rules could cost jobs in Germany. On Thursday he said that Berlin's actions could hamper progress at a European level.   Continued...

Tom Enders, Chief Executive Officer of Airbus Group is seen at Airbus headquarters in Toulouse, southwestern France, June 16, 2014. REUTERS/Regis Duvignau