After Airbus A400m, Europe Faces Dearth Of Big Defense Projects

In October, the Netherlands will become the latest EU country to follow the trend when rich foreigners are to be offered temporary residency permits if they agree to invest at least 1.25 million in Dutch companies, according to Dutch News. The visa will be good for one year and can be renewed, as inother EU countries that feature variations of the offer. The candidate must meet certain conditions including the creation of local jobs and anti-money-laundering proof of the sources of the money. Applicants will also be subjected to personal checks to ensure they are not a threat to public order, the Dutch Justice Ministry explained. Such incentives to attract foreign investment are not new. The United States, Canada, Australia, Britain, France and Ireland, among others, operate similar schemes to speed up residency permits for individuals investing in businesses orbuying property worth more than one million (dollars, pounds or euros). What is new, however, is the growing popularity of the visa-for-investment exchange around the EU as the permits become accessible to a far larger number of less wealthy foreigninvestors, who could buy a second home abroad. The deals are offered mainly by countries more affected by the economic crisis and the competition among them is increasing as well as they bid to outdo each other with affiliated perks. Conditions can vary from country to country and some require less investment than others. In general, the golden visa offers the right to live and travel (but not work) anywhere among 26 countries of Unions member states (signatories to the Schengen agreement that allows unrestricted travel), including all Western Europe excluding Great Britain. In some of the countries,the new owners can apply for permanent residencyafter four to six years of minimal residence requirements meaning one or two weeks a year in-country. Earlier this year, Portugal began offering to speed residency applications to people buying properties worth a minimum 500,000. As a result, the government expects as many as 10,000 homes will be sold this year to foreigners. The applicants investment can be spread over more than one property. Portugal also offers residence permits for investments of 1 million into any company in Portugal, or creating 10 new jobs in a business.

I do not believe we will see a meaningful (one) in the next 20 years,” Tom Enders, chief executive of Airbus parent EADS, said last week in a speech on transatlantic security. “I do not assume in my strategic planning that in the next 10 to 15 years there will be any new major European projects in our sphere of activity. I see governments are even trying to cut or reduce projects that previously been agreed,” Enders said. The A400M was designed to meet a shortfall in military transport capacity among seven NATO nations: Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey. But the 20 billion euro project went more than 5 billion euros over budget, forcing buyer nations to agree a 3.5 billion euro bailout in 2010, part of which is supposed to be repaid from average cost penis enlargement surgery export royalties. Many analysts say the region’s financial crisis has exacerbated divisions and dampened interest in projects that have a habit of running heavily over-budget. “We will go through a phase now where there is not only little collaboration but also little investment in new products,” said independent defense analyst Howard Wheeldon. A recent decision to halt production of the Boeing (BA.N) C-17 strategic jet-powered transporter, a rival to the A400M, breathed life into hopes for new export orders for the plane. Until now, the only export customer is Malaysia, with four planes on order. South Africa canceled an order. Airbus sees a market for several hundred aircraft. But the company has expressed concerns about plans by some of the plane’s European customers to sell A400Ms they have ordered directly on to customers outside the region, frustrating Airbus hopes for producing extra planes. Germany, Spain and most probably France, analysts say, want to jump in front of Airbus and export some of their domestic allocations directly to boost budgets.

Europe’s Voters Wisely Stick With Frugal Leaders

But mistakes are always made in crises, and successful politicians keep diverse constituencies on board, as she has managed to do. The fundamental question is whether you end up afloat, and Europe has. Thanks to substantial reforms because of the crisis in most EU countries, Europe will probably come out with a higher growth rate. During the height of the euro crisis, Jean-Claude Juncker, then prime minister of Luxembourg, made a statement that encapsulates everything that is wrong with the political thinking about the crisis: We heads of government all know what to do, we just dont know how to get re-elected when we do it. These words have stuck in the public mind as an evident truth, but they are patently untrue. Junckers words reflect the contempt of elites for their voters, suggesting that citizens are short-term vote cattle while the political leaders are wise. The financial crisis in Europe has shown that the opposite is true. Governments that pursued short-term and irresponsible fiscal policies in the vain hope of temporary growth improvements have been thrown out by the voters, while quite a few fiscally responsible governments have been re-elected. Five years have passed since the global financial crisis erupted. By my count, 19 of the 28 EU governments have been thrown out by their voters in this period ( Austria s parliamentary elections occurred before and after the period in question), while eight have been re-elected, namely the governments of Estonia , Finland , Germany, Latvia, the Netherlands, Poland , Sweden and, indeed, Luxembourg. These eight countries have center-right governments and have pursued responsible fiscal policies. Before the crisis they had budget surpluses. In the depth of the crisis in 2009, their budget deficits averaged 4.0 percent of GDP, moving to 1.6 percent in 2012. By contrast, the other 19 EU countries whose governments were not re-elected had budget deficits during the boom, which deepened to 7.6 percent of GDP in 2009, firming to an average deficit of 4.8 percent in 2012.