Meteor/Airbus Choice Jump Start
European Consolidation

Britain's decision to be a good European in choosing the Meteor missile and Airbus A400M military transport over competing U.S. products gives a jump start to European consolidation.

In withstanding intense political pressure from President Clinton, the UK demonstrated it has faith in the future of Europe's aerospace industry and its ability to compete technologically and globally against the American defense industry.

French Prime Minister Lionel Jospin praised Britain's decision, calling it "a new stage of consolidation of European cooperation regarding weaponry."

But U.S. Defense Department spokesman Ken Bacon registered disappointment, and called the move a step backward for transatlantic arms cooperation.

"It is certainly a setback," he said. "This was an opportunity to start down this road, but it's an opportunity that has passed by. It was certainly a disappointment that the British chose to develop an entirely new missile with the European consortium rather than to work with an American team (led by Raytheon) to improve the Amraam Advanced Medium-Range Air-to-Air Missile that is available today," he said.

Other countries, including Germany, Italy, Spain, Sweden and France, are expected to follow Britain's $1.5 billion choice on Meteor.

The ramjet-powered Meteor will equip the RAF's Eurofighter Typhoons, allowing them to shoot down enemy aircraft 125 miles away.

Earlier this year the U.S. rejected an offer to collaborate on Meteor, interpreting it as an attempt by the European companies (and also Boeing, which is a marketing partner on Meteor) to challenge Raytheon's near-monopoly on the multibillion-dollar U.S. guided weapons market.

European politicians worked hard to counter President Clinton's lobbying for Raytheon. German Defense Minister Rudolf Scharping wrote to British Defense Secretary Geoff Hoon arguing in favor of Meteor, and Italian Prime Minister Massimo D'Alema and French President Jacques Chirac reportedly raised the Meteor issue with British Prime Minister Tony Blair. EADS chairman Manfred Bischoff stated that arming Eurofighter with Raytheon's Amraam could harm the fighter's export potential due to U.S. inconsistency on granting export licenses in certain markets.