Monday, December 03, 2007

This rather blows the arguement doesn't it

One of the great arguments for the continual public subsidy of the Airbus project is that it will ensure that high skill, high wage jobs are kept in the EU. Thus, despite the projected 10,000 lay offs and the Franco-German pact on where these should be it must be slightly disconcerting for the cheerleaders that Mr Gallois, the boss of lead shareholder EADS has been talking on French Radio suggesting that they will be outsourcing plants.

He blames this on the low dollar rate vis-a-vis the Euro. OK so far so uncontroversial, but if the Telegraph is right and the US credit crunch is going to become Le Crunch Européen then where will that leave his outsourcing? And worse still how loud will be the screeching from the Trade Unions and chancelleries of Europe?

Of course if it were not for the fact that this is a political project as much as an economic one then many of the problems of Airbus would not exist at all and it might be in danger of making a profit, as might the reality of outsourcing. But do the power mongers want a profit or political prestige?

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