Brussels, 16/07/2002 (Agence Europe) - A competitive aerospace industry is essential to provide the means and capabilities needed to match Europe's economic ambitions and its policy aims. This is the main conclusion of the Strategic Aerospace Review for the 21st Century (STAR 21) report that the High-Level European Advisory Group on Aerospace presented to the President of the Commission, Romano Prodi on Tuesday afternoon. . The Group was set up in 2001 to analyse the state of the industry and assess its longer-term policy needs. From the EU Institutions, the Group comprises the Commissioners Loyola de Palacio, Erkki Liikanen, Philippe Busquin, Christopher Patten, Pascal Lamy, Javier Solana (the EU High Representative), the Members of the European Parliament Carlos Westendorp y Cabeza and Karl von Wogau. From the industry, the Group comprises Jean-Paul Béchat (SNECMA and President of the European Association of Aerospace Industries AECMA), Manfred Bischoff (EADS), Sir Richard Evans (BAE Systems), Jean-Luc Lagardère (EADS), Alberto Lina (Finmeccanica), Denis Ranque (THALES) and Sir Ralph Robins (Rolls-Royce). STAR 21 set out a number of policypolicy recommendations for the future, which the Commission will be considering in the coming months. Erkki Liikanen is Chairman of the Advisory group and considered that, " The reaction of the Member States and the EU institutions will of course be especially important in determining the way ahead for the industry."
If Europe is to continue as a flourishing centre of excellence for aerospace, then the appropriate policy decisions must be taken rapidly, both to meet the competitiveness goals set out in the Lisbon European Council in 2000 and to provide the means and capabilities needed to underpin policy ambitions supporting Europe's role and influence in the world. In this regard, the report underlines that Europe may not be able to fulfil policy ambitions if political commitments cannot be backed up by European security and defence capabilities. The report notes that new policy initiatives might be envisaged at European level, involving national governments, the EU institutions and of course industry itself, to provide a secure framework for the industry's competitiveness in both the civil and defence sectors. The report finds that the wellbeing of the industry depends on the twin pillars of civil and defence which are both complementary and in a number of instances mutually dependent. The US, which is Europe's principal competitor recognises the linkages between defence and civil uses and invests heavily to fund research and innovation. Major restructuring has been undertaken in recent years, but policy evolution has not kept pace with these structural changes. STAR 21 also identifies the initiatives needed to sustain competitiveness into the future and has formulated a number of recommendations:
Global markets: STAR 21 calls for a level playing field which allows fair competition in world markets, the relaxation of "Buy American" rules, convergence in export control procedures on products with US components, reciprocal market access and international co-operation programmes to help build new trading relationships.
Operating environment: Research is a key factor for competitiveness. A co-ordinated strategy and increased resources are essential. An estimated €100 billion is needed over the next 20 years for European aerospace research and technology, funded from public and private sources. Tax incentives should also be considered. Measures should be taken to secure the availability of a highly skilled and mobile workforce.
Governance of civil aviation: The EU should become the policy-maker and regulator in all areas of civil aviation, speaking as the united voice of Member States in international bodies and ultimately becoming a full member of the International Civil Aviation Organisation, together with Member States. A master plan for air traffic management should be developed under the Single Sky initiative.
Defence: Security, defence and related research require the greatest efforts. This should lead to a coherent structure for defence and security equipment in Europe. Military requirements should be harmonised and procurement budgets planned jointly. There should be more coherent spending on defence research. Capability gaps identified in the European Headline Goal should be bridged. Additional resources should be provided.
Space: A consolidated European space policy with adequate funding is needed. The Galileo satellite positioning system and the GMES satellite monitoring projects should be mobilised as quickly as possible. A fully Europe-based capability for surveillance, reconnaissance and command/control should also be developed. Europe should also maintain an independent and competitive access to space.