PE 327.462 4.7.6.

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Nov 18, 2013 (3 years and 11 months ago)

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PE 327.462











4.7.6.


THE AEROSPACE

INDUSTRY


LEGAL BASIS

Air transport policy is based on Article 80 §2 of the EC Treaty, whereas policy w.r.t. aircraft construction
must be based on Article 308, which covers all cases in which the Treaty does not
make explicit
provision for action to attain one of the EU's objectives. Article 157 provides a legal basis for EU
industrial policy.


OBJECTIVES

Aerospace is vital to Europe’s objectives for economic growth, security and quality of life. It is
influenced

by a broad range of European policies such as trade, transport, environment, security and
defence. European aerospace must maintain a strong competitive position in the global aerospace
marketplace.


ACHIEVEMENTS

The European aerospace industry is one of
the world’s leaders in large civil aircraft, business jets and
helicopters, aero
-
engines and defence electronics accounting for one third of all aerospace business
turnover world
-
wide, compared with almost half for US industry.

According to the report of t
he European Advisory Group on Aerospace “Strategic Aerospace Review for
the 21
st

century” (STAR 21), delivered in July 2002, c
ertain key factors give the industry its distinctive
character:

-

close links between civil and defence activities

-

cyclical nature o
f the industry

-

high level of capital intensity

-

consolidation

-

privatisation

-

EU
-
US relationships


A.

Aircraft Industry


1.

Competition Policy.

The Council Resolution and Declaration of 1975 and 1977 respectively laid the foundations for
coordinating member stat
es' aircraft construction policies given that aerospace technology is advancing
rapidly and becoming increasingly expensive, requiring extensive cooperation. The Airbus programme
is exemplary in this respect. Launched in 1968 as an economic interest group
ing, Airbus Industrie is now
one of the most important players in Europe's aeronautical industry. Other cooperative projects are the
Tornado, Alpha Jet and Transall programmes, which, together with joint space projects, greatly increase
the competitiveness

of European manufacturers. In 1985 a number of EU countries agreed to pool their
resources in developing the EFA or 'Eurofighter' for the 1990s.

In its 1997 Communications on the European aerospace and defence
-
related industries, the Commission
recognise
d that the industry is too fragmented to face up to international competition and that
restructuring is going too slowly. Accompanying measures were needed in the 5th European research
framework programme, the application of public procurement rules, the
adoption of a European
Company Statute, uniform certification by a European Civil Aviation Authority and European
standardisation, to avoid a de facto US monopoly.

In its 1999 Communication 'The European Airline industry: from single market to world
-
wide

challenges', the Commission assessed the progress of the European airline industry and identified
policies to safeguard its competitiveness.


2.

Research and Development Policy

The progress made in aerospace research and industry owes more to inter
-
governmen
tal action and cross
-
border projects launched by aerospace enterprises than EU intervention. In 1988 the major aircraft
manufacturers published a report entitled 'Euromart' (European Cooperative Measures for Aeronautical
Research and Technology), which fo
cuses on a programme of cooperative research and development,
which is crucial if this European industry is to thrive; it calls for the promotion of a strategic programme
for the aeronautics industry, similar to that for the electronics sector (ESPRIT).
In

June 1995, the
Commission set up an Aeronautics Task Force to coordinate research projects in the industry.
Aeronautics and space research have been designated as thematic priorities of the 6th R&D Framework
Programme for 2002
-
2006.


B.

The Space Industr
y


1.

Competition Policy.

European governments began cooperating in the space sector through the European Space Agency
(ESA), banks and industrial enterprises also being involved. The Ariane programme, involving ten
European countries, was launched in 1983. I
n 1987, the ESA Council of Ministers said that, if Europe
wanted to maintain its role in space in the future, ESA's 13 member states should agree the broad
-
based
development of the Ariane programme. The future of the European aerospace industry depends on
European cooperation, since no European country has sufficient financial and economic resources to
implement major space projects on its own. In 1996, the Commission proposed a European Space
Strategy fostering applications in telecommunications, satellite

navigation and Earth observation. The
measures proposed were based on existing resources (RTD Framework Programme, Trans
-
European
Networks, national and ESA programmes, EIB
-
EIF financing), the alignment of trade positions and
better coordination. The 1996

and 1997 Communications on defence
-
related industries proposed the
application of EU rules on the award of public contracts, intra
-
Community trade and competition to this
sector, which also includes large parts of the aerospace industry.
Beyond the emblem
atic success of the
Ariane launcher, space activities have evolved from being a research endeavour to offering a unique and
critical technology enabling Europe to address and achieve a large number of policy goals related to
economic growth, the informatio
n society, transport infrastructure, environmental protection and peace
-
keeping. Space has the potential to become an integral component of the EU’s core policies. The first
benefits of such a development are already highlighted by the GALILEO and GMES ini
tiatives,
respectively in the field of navigation by satellite and global monitoring for environment and security.

Following the 2000 Communication
Europe and Space: Turning To a New Chapter
,

endorsed by
subsequent EU and ESA Council Resolutions, the Commi
ssion and the ESA Executive set up a Joint
Task Force. Its aims are to further develop and implement the European strategy for space, reporting to
the EU and ESA Councils and the European Parliament at the end of 2001. In December 2001 the
Commission Commu
nication “Towards a European Space Policy”gave an analysis and recommendations
for the space sector.


2.

Research and Development Policy

For many years, Europe’s public financial support for space research and development was channelled
through national space

organisations and the ESA, although several space
-
related R&D technology
projects have been financially supported under successive EU research Framework Programmes. The 6
th

Framework Programme will address the implementation of:

-

GALILEO as a strategic Eur
opean infrastructure to radically change the transport sector and foster
related services.

-

GMES to provide information to the user community as specified in the EU Action Plan (2001
-
2003).

-

Satellite telecommunications to provide affordable and economical
ly viable services to the largest
possible customer base.

-

A global budget of over €1 billion has been proposed to support research efforts in the aeronautics
and space sectors.


C.

Relations between Europe and the USA

A number of attempts have been made between the ESA and the USA to resolve the problem of sta
te
aids in the aeronautics industry. In 1992 the Council adopted Decision 92/496 on an agreement between
the EU and the USA on trade in large civil aircraft providing for discipline regarding all forms of
government support for manufacturers of large civil

aircraft. In 1997, the Commission reviewed the 1992
agreement and decided that it could be improved, particularly w.r.t. subsidies to military programmes,
via research credits from NASA and the Pentagon. In July 1997, the Commission also authorised the
Bo
eing /McDonnell
-
Douglas merger, which had raised serious questions about competition.


ROLE OF THE EUROPEAN PARLIAMENT

-

The EP adopted Resolutions in:
-

-

1987 stating that the time had come for the EU to develop a coherent policy on space activities and
reco
gnizing the ESA as the principal instrument of European cooperation.

-

1988 calling on the member states concerned to increase their support for the Airbus programme and
particularly to the development of the long
-
range A
-
330 and A
-
340 aircraft.

-

1991, callin
g on the Commission to define and implement a 'comprehensive and balanced' European
space policy.

-

1992 on employment in the European aerospace industry.

-

1993 on the Commission Communication on the European aircraft industry, where it again
emphasized the n
eed to create a favourable environment for developing the aircraft industry and
proposed that a research programme should be established in cooperation with the industry.

-

1995 appealing to all partners to conclude a multilateral trade agreement to cover g
overnment
support in the civil aircraft sector.

-

1996 on the EU aircraft industry, where it expressed concern about the European industry's loss of
market share. In November 1996, the future of the European aerospace industry was discussed in an
EP symposi
um.

-

1997 welcoming the EU Action Plan for Satellite Communications in the Information Society as well
as the Franco
-
German
-
UK declaration in favour of a European
-
level restructuring of the military and
civil aerospace industry and endorsing the transform
ation of Airbus Industrie into a single corporate
entity.

-

1998 reacting to the 1996 Commission Communication on Space, Parliament called for a
strengthening of EU support for Europe's space industry and reacting to the Commission
Communication 'The Europe
an Union and Space: fostering applications, markets and industrial
competitiveness', emphasised the urgent need for a reshaping of the EU's space policy.

-

reacting to the proposal for a Council Decision on the agreement between the EU, the ESA and the
Euro
pean Organization for the Safety of Air Navigation on a European contribution to the
development of a global navigation satellite system.

-

on the Commission Communication "The European Aerospace Industry
-

meeting the Global
Challenge."


In 2000, Parliame
nt adopted a Resolution on the Commission working document “Towards a coherent
European Approach for Space”.



10/03/2004