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Europe

EU and US Square Up Over Airbus and Boeing

Europe is ready to cut subsidies to Airbus if Washington agrees to stop giving subsidies to Boeing.

The European Union has indicated it would be ready to cut aid to Airbus, the world's biggest airplane manufacturer, if Washington were prepared to do the same to Boeing. The comments from Brussels came after US President George W. Bush said on Friday that EU subsidies to Airbus are "unfair" and that the United States may file a complaint to the World Trade Organization. France-based Airbus receives loans from the British, French and German governments, while Boeing gets indirect subsidies through research grants from defense projects. Rules on the matter stem from a 1992 agreement between the EU and the United States on government support -- which also covers aircraft. (EUobserver.com)

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