European Union To Maintain Airbus Aid

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The EU pledged its continuing support, amidst assorted criticisms, of the Airbus airline. The decision caused Washington to react with consternation, breaking off talks with EU representatives.

The issue concerns the continuation of government-funded aid for companies. Washington does not believe the EU should continue with its course of action concerning Airbus. An article in CNN International reveals

Washington broke off a truce between the two sides last week, accusing Brussels of reneging on the goal of eliminating state aid and trying to bring new issues to the negotiating table.

A European Commission spokeswoman said Brussels was still open to further talks, but the ball was now in the U.S. court.

“We were very surprised by the abrupt withdrawal … taken on Friday night,” said Claude Veron-Reville at the European Union executive’s daily briefing. “We are willing to continue negotiations if the U.S. clarifies their position.”

The report also indicates:

The EU says that if Washington takes the matter back to the WTO, it would resume its own litigation and press on with providing launch aid for the new Airbus model, the A350.

“If either party goes back to the WTO, we are out of the negotiation process,” Veron-Reville said. “The terms of the January 11 agreement are dropped … including the commitment not to disburse any aid until April 11.”

Washington went on the offensive last year because of the prospect of European subsidies for the A350, which would challenge Boeing’s new 250-seat long-range jetliner, the 787.
It wants Europe to stop providing “launch aid” loans to Airbus, which have added up to some $15 billion since 1967.

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European Union To Maintain Airbus Aid
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