EU and US industry explore co-operation on 'Star Wars' missile defence

Political and economic considerations are at odds in the debates over whether European companies should play a part in the development of President Bush's so-called 'Star Wars' missile defence system. Although seen as an unmissable business opportunity by industry, most of the EU's political leaders have so far been reluctant to get involved in the controversial technology.

On 20 July 2004, Europe's largest aeronautics company EADS came to an understanding with US defence contractors Lockheed Martin and Northrop Grumman to explore opportunities for co-operation in the development of missile defense systems for the US, Europe and Asia. This deal could be worth billions of euros for the European company and other contractors, such as Italy's Alenia and Britain's BAE Systems.

"EADS and Lockheed Martin intend to further expand the breadth and scope of their cooperation in missile defence" said Jean-Louis Gergorin, Member of the Executive Committee of EADS, Executive Vice President Strategic Coordination. “By bringing together our experience and capabilities, we will be in a position of strength to provide our governments with a joint solution for a global response to a global threat”.

The planned programme must, however, be approved by EU governments and be granted funding from their defence budgets. Britain is so far the only European country that has given the green light to the programme, while many other countries have been wary, fearing that their involvement in the US-led initiative could anger Russia. Moreover, there has been concern that it might give a further boost to US unilateralist policies.