Europe's Mega Defense Merger Is Putting Pressure On The German Government

Graphic: World's largest defense companies

Mega Defense Merger: EADS-BAE Plans Put Merkel Under Pressure -- Spiegel Online

The planned merger of British defense contractor BAE Systems with aircraft maker EADS is putting Germany's chancellor under pressure. If Merkel consents to the deal, she will jeopardize jobs in the high-tech industry. But if she refuses, she will endanger the future of the aerospace giant.

It was a beautiful August day when Tom Enders, a former paratrooper and avid amateur pilot, decided to go for a spin with his hang-glider. But the short flight ended painfully for Enders when he crash-landed the glider, injuring tendons in both arms. With his arm in a sling and a plastic cast, the powerful CEO of the European Aeronautic Defence and Space Company (EADS), the parent company of aircraft maker Airbus, looked like he was wearing part of a suit of armor. It wasn't exactly an encouraging look for someone who is in the process of forging the world's largest defense group.

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My Comment: This merger would not only create the world's largest defense group .... with annual sales of about $45 billion (€34 billion) .... but this new company would now be capable of providing the entire arsenal of modern warfare, including aircraft carriers, fighter jets, nuclear submarines, satellites and drones. More to the point .... through this merger the Europeans will then be positioned to compete against the giant U.S. defense companies for global markets. It is because of this need to position themselves on the global scene that (I believe) this merger will go through .... even with the prospect of job losses in cetain departments.