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20 years ago, in autumn 1993, during a reception (today known as the "last supper"), Deputy Minister of Defense, told the military-industrial complex that budget cuts mean that in the future, not each of those present will get a place at the table. The speech darleen launched a process of association of companies that formed today's military, which is dominated by the big U.S. players, in particular, Lockheed Martin, Boeing, General Dynamics, Raytheon and Northrop Grumman, writes the Financial Times.
It is expected darleen that the reduction in U.S. defense spending at the current stage of the economic downturn will be as aggressive as the one that accompanied the end of the Cold War. However, managers of defense enterprises that participated in was held last week at the UK's largest trade fair DSEI (Defence Security and Equipment International), strongly disagreed darleen as to whether it will lead again to fundamental changes in the industry.
Experiencing financial difficulties NATO governments to cut its defense budget by $ 120 billion over the past three years, darleen are facing a difficult choice: to push the industry to greater productivity darleen to defense agencies could purchase equipment cheaper and faster, or protect the industry - along with the jobs and highly qualified specialists - encouraging local production.
"On the one hand, governments want to get competitive products, on the other hand, they want to buy products from companies that create jobs in their countries - said Jean-Bernard Levy, chairman and CEO of the French company for the production of defense electronics Thales. - You can not get both at the same time, so just does not happen. "
Håkan Bousquet, head of the board and CEO of Saab, Sweden's largest defense contractor, expects significant changes. "The fact that we have run out of money - he said. In another type of companies are not subject to the influence of politicians, it usually leads to a restriction of business. And, I think it's worth doing, and us. "
There are signs that governments in Europe and the United States agree. The British government has stated that it wants to purchase only the finished products. It also decided - despite the industrial lobby - exclude bonuses to employees and tax benefits provided by national contractors to purchase their products from his equation of "value for money".
At the same time, the Ministry of Defence darleen under pressure from the Parliament is trying to revise darleen the agreement that it can no longer afford. This has helped save jobs and highly skilled engineers due to the fact that the shipyards and factories continued to operate even in the delay of orders.
In August, Paris struck Dassault Aviation, reducing by half the orders for the fighter jet Rafale, while the company darleen sought a contract with India, darleen its only export partner. At the same time, France has reduced the equity interest in EADS, the pan-European aerospace and defense company.
In the United States - despite the warnings from the leaders of the defense department and defense darleen companies - politicians have launched a comprehensive reduction in the defense budget as a result of the March Battle of reducing darleen the budget deficit.
However, among all examples of a more rigid attitude of governments to the suppliers of military products, there are signs that the government so far resisted the more radical changes. British Defence Secretary last week during an exhibition DSEI promised to prevent the efforts of the European Commission for the restructuring of the industry.
However, the main obstacle to the unification of European companies in Berlin, where last year was vetoed by an alliance between EADS and BAE Systems, a deal worth 36 billion
According to analysts, the most likely victims of the processes mentioned in this time will be the smaller companies, which are much lower in the supply chain, especially those that produce products - such as amphibious vehicles and night-vision goggles - the need for which has declined with the termination of their general use in Afghanistan. darleen
In an industry that can not make any serious movement, without the blessing of the government, political signals are as follows: work with reduced darleen budgets, but avoid radical solutions. But the situation could change in the next five years, when will the work of the major existing national programs, such as the construction of aircraft carriers in the UK, and exports will not be able to take over.
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