Adam Sage in Paris
Win tickets to the ATP finals
An extraordinary diplomatic row was under way between France and Germany last night as both countries traded blows over the crisis at Airbus, the European planemaker.
With Louis Gallois, the chairman, reduced to the role of onlooker, Chancellor Angela Merkel’s spokesman made a highly unusual attack on the French Prime Minister, Dominique de Villepin.
Thomas Enders, the German joint chief executive of the Airbus parent, EADS, joined in the public Franco-German spat when he also slapped down Mr de Villepin for announcing 10,000 job cuts.
“Perhaps he knows more than me,’’ said Mr Enders as simmering tensions broke out into the open to leave the vaunted Franco-German axis under pressure.
President Chirac and Mrs Merkel will attempt to calm the row when they meet on Friday, according to Mr de Villepin.
The meeting comes after the main German shareholder, DaimlerChrysler, vetoed the Airbus chairman’s programme to save €2 billion (£1.3 billion) a year and rationalise the manufacturer's production system.
The veto, which was sparked by Mr Gallois’ plan to build the long-haul A350 in Toulouse, southwest France, plunged Airbus into what commentators described as a crippling deadlock.
Mr de Villepin irritated Germany with overt political interference in Airbus by telephoning Mr Gallois and telling him to avoid compulsory redundancies under the restructuring plan, dubbed Power 8.
“There must be an answer for everyone,” he said.
Berlin was further angered by his assertion that 10,000 job cuts had already been decided.
“With the best will in the world, I can’t tell you where the Prime Minister gets his information from,” said Mrs Merkel’s deputy spokesman, Thomas Steg.
The German Government also denied French claims that Mr Chirac and Mrs Merkel would decide Airbus’s fate at their summit this week.
However, French sources promptly accused the German side of hypocrisy.
“It’s the Germans who have been playing politics with this,” said one source in Paris.
He said the nub of the dispute was Mr Gallois’ view that French Airbus factories were better equipped than their German counterparts to manufacture the high-technology A350.
“The Germans are taking a purely mathematical approach, which involves dividing the work equally irrespective of investment and modernisation in the factories,” the source said that Mr Enders, who was appointed by DaimlerChrysler with a brief to block what is seen in Germany as a French plot to take over Airbus, claimed no decision had been made on the scale of the job cuts.
He would “talk about this in the coming days” with Mr Gallois.
The relationship between the two men is said to be tense after Mr Enders backed DaimlerChrysler's veto of the Power 8 restructuring.
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
36-month car lease
on contract hire for
£359.99 plus VAT pm
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
The UK's leading alternative to showroom finance.
Finance packages tailored to your needs.
Minimum loan of £15,000
Car Insurance
£12,578 per annum
The Independent Housing Ombudsman
London
Competitive
Barclaycard
Not Specified
The Sheppard Trust
London
£80-95,000
Clay McGuire Executive Selection
Moments from Battersea Park.
For sale with Winkworth.
See your free Experian credit report beforehand
Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.
20% off selected Azores holidays taken in October with Sunvil Discovery
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.