F
R

3
-
9
9

---

Home | Update | LATEST ISSUE | Gallery | FR Profile | Datafiles | FR 3/99

AEROSPACE RESEARCH NEEDS CONTINUED SUPPORT

An increase of research investments and extended promotion of small and medium-sized enterprises - those are the promising intentions that the new German finance minister Oskar Lafontaine is repeatedly announcing.

That should be reason to be cheerful one could think. But the actual situation seems to be quite different. Whatever the "shadow chancellor" alludes to may apply to all kinds of industry sectors, but certainly not to the German aerospace industry.

If the plans for the new national aerospace research program (which are currently discussed behind close doors) pass the cabinet during the next few weeks, one of the most renowed fields of German high-tech could degrade into a subsidised back-bencher.

The government intends to reduce its share in R&D programmes from the current 50 pe cent to a mere 20 per cent. To make up the shortfall, it is suggested that local state governments should throw in 20 per cent while the industry has to cover the remaining 60 per cent.

The research program's budget is to amount to 1,2 billion German Marks (DM). According to the new cost share scheme, German and state governments would have to pay 240 million DM each, while the remaining 720 million DM would rest with the industry.

Reactions from the industry so far range from uncertainty over the real outcome of the affair to angry rejection of the proposals. Certainly, this response is justified since the first research program, running from 1995 to 1998, evidently created employment impulses by producing high-quality jobs in research and development and therefore enabled the Germany industry to hold its position both in the transatlantic as well as in the European competition.

According to the society of German aerospace industries (BDLI) it is of utmost importance to "keep this position and if possible to extend it especially against the backdrop of the continuing concentration and consolidation process".

But only the minister of finance may know how this is supposed to work with the new budget solution. Indeed it is a fact that the publicised inclusion of the local states has to be considered as a deceptive measure. The Länder budgets for 1999 are already ratified, and the medium term financial plans have passed the legislation as well. Generally speaking, it will not be too hard for the local states to pass the buck to Bonn, regarding their empty coffers and the importance of aerospace which is seen as a national responsibility.

However, if everything proceeds as planned, the state will only refer to its 20 percent. Therefore the industry could end up with an 80 percent share of the aerospace research program. This would result in a disaster for medium sized enterprises which are mainly specialised in the production of equipment. And it were especially these companies who were to be strongly supported by the minister of finance.

Well, they were being assisted by the fifth framework program of the European Community, as the ministry of economy declared. Approximately 100 million additional Euros would then be at the disposal of the German aerospace industry.

There is only one problem. To get at these funds, at least two other European companies have to participate in such a program. Against this background you simply cannot talk of an important strengthening of the national leadership in systems.

Therefore the EEC funds are not to be used as a compensation for the reduced research program. But that was not the intention, as the ministry of economics (BMWi) proclaims. The purpose of the whole affair was to leave our boundaries, to join the growing European framework instead of concentrating on the national component.

In other words this means a compulsory obligation to integrate into the European structure by cancellation of own primary abilities and capacities. Ideological revenge à la rot-grün? Germany appears to be on the verge of dropping into high-tech oblivion.

Yet Edelgard Buhlmann, minister of education and research, had only recently discovered the following: "Germany needs a modern policy of innovation. The spendings for research and development as well as for education in Germany during the past few years have reached a very low level. The level of investments for the future has to be increased significantly to successfully achieve the change into an educational society. The German government will take this challenge."

Cynicism or coalition of chaos?

Hip hip hurra, Germany!

From page 4 of FLUG REVUE 3/99