Airbus CEO’s euro warning
The chief executive of Airbus parent company EADS, Louis Gallois, warned in an interview published Thursday, that the high value of the euro threatened European manufacturing.
The high value of the euro against the dollar “is in the process of suffocating a good portion of European industry by eating away at its export markets”, he told the daily Le Figaro. “If this continues export manufacturers will flee Europe,” he warned. Gallois has repeatedly warned about dangers to the company’s position as the European currency has soared to record highs against the dollar, suggesting moving production abroad to get around the problem and even paying European suppliers in dollars. The euro reached an all-time high of $1.5905 on March 17.
The EADS chief said the sliding dollar would over the long term force the company to “rebalance our activities between Airbus and our other business lines - defense, space and services - which are much less sensitive to the movement of the dollar”. However, Gallois said the slide of the dollar and the difficulties Airbus has experienced with its A380 super jumbo and A400M military transport “have weighed too much in my opinion on how the market values EADS”. (China Daily)
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