4 février 2019 | International, Naval
By: Tom Kington
ROME — A series of diplomatic rows between France and Italy, culminating in the exchange of insults between leaders, is casting doubt on naval industry cooperation between the countries.
Moves by France's Naval Group and Italy's Fincantieri to integrate their shipyard work has coincided with a crescendo of acrimony between Rome and Paris following the election last year of Italy's first populist government.
Italian Deputy Prime Minister Matteo Salvini and French President Emmanuel Macron have battled over who should take responsibility for migrants that sail to Europe from Africa, with Salvini last month calling Macron a “terrible” president who deserved to be voted out of office.
Italy's second deputy prime minister, Luigi Di Maio, who leads the anti-establishment Five Star party, has meanwhile openly backed the so-called Yellow Vest protesters who have rioted on the streets of France in protest at Macron's government and its policies.
Asked about the verbal attacks from Rome on Jan. 27, Macron replied: “Italy is a great people; the Italian people are our friends and deserve leaders worthy of their history.”
Underlying the row is the Italian government's new nationalism, which has put it at loggerheads with the European Union and Macron, who is seen by Rome as a pro-globalism politician. The spat is expected to increase as both Italy's ruling parties — Five Star and Salvini's League party — get on the campaign trail ahead of European parliamentary elections in May.
Pierside troubles
Analysts fear fallout for defense industry collaboration between the countries, which starts with the well-established satellite and space joint venture between Italy's Leonardo and France's Thales.
But the main concern is the naval deal, which was signed last October, under which Fincantieri and Naval Group created a 50-50 joint venture to build and export naval vessels.
Fincantieri CEO Giuseppe Bono said he hopes the deal is the start of wider collaboration.
Speaking at the launch of Italy's ninth FREMM frigate on Jan 26, Bono played down the frictions with France, telling reporters, “We are part of the same alliance, we have common history,” and adding that the diplomatic tensions “will not influence the work we are doing with Naval Group.”
But one analyst was less sanguine. “It's a complicated deal, and as it gets more complicated, external events become more influential,” said Jean Pierre Darnis, scientific adviser at Rome's IAI think tank.
“If ministers from the two countries don't meet, and we are waiting for [the] next bilateral [meeting], problems won't get resolved. Right now the Italian-French business community is very concerned,” he added.
The naval deal was spurred by an earlier accord for Fincantieri to take control of French shipyard Chantiers de l'Atlantique. That deal, too, was up in the air when France and Germany referred the agreement to the European Commission for anti-trust scrutiny last month.
“What has happened is extremely serious, France and Germany behaved wrongly. It throws into doubt all accords,” Italy's Salvini said.
Bono said he was confident the EU would not oppose the deal, given it is “in the interests of Europe,” echoing claims that a consolidated European shipbuilding industry would enable competition since it could compete with large players outside Europe.
But Europe's ability to consolidate industry was again thrown into doubt in January when Macron and German leader Angela Merkel agreed to forge closer ties between Germany and France to head off the political challenge in Europe from populist governments like Italy, Hungary and Poland.
One consequence, warned Italian IAI analyst Michele Nones, was that closer Franco-German ties could squeeze Italy out of access to defense industry funding provided by the new European Defence Fund.
30 octobre 2024 | International, C4ISR, Sécurité
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10 janvier 2019 | International, Aérospatial
By ELIANA JOHNSON and DAVID BROWN Concerns about Patrick Shanahan's Boeing ties have re-emerged since President Donald Trump said he may be running the Pentagon ‘for a long time.' Acting Defense Secretary Patrick Shanahan's private remarks during his 18 months at the Pentagon have spurred accusations that he is boosting his former employer Boeing, people who have witnessed the exchanges told POLITICO — fueling questions about whether he harbors an unfair bias against other big military contractors. Shanahan, who spent 31 years at Boeing before joining the Pentagon in mid-2017, has signed an ethics agreement recusing him from weighing in on matters involving the mammoth defense contractor. But that hasn't stopped him from praising Boeing and trashing competitors such as Lockheed Martin during internal meetings, two former government officials who have heard him make the accusations told POLITICO. The remarks raise questions among ethics experts about whether Shanahan, intentionally or not, is putting his finger on the scale when it comes to Pentagon priorities. They also call new attention to a recent decision by the Pentagon to request new Boeing fighters that the Air Force has said it does not want — a request that Bloomberg has reported came after "prodding" from Shanahan. Concerns about Shanahan's ties to his former employer first surfaced during his confirmation hearing to be deputy secretary, but they have re-emerged since President Donald Trump said last month he may be running the Pentagon “for a long time.” In high-level Pentagon meetings, Shanahan has heavily criticized Lockheed Martin's handling of the production of the F-35 fighter jet, which is expected to cost more than $1 trillion over the life of the program, according to one of the two sources, a former senior Defense Department official who was present. Shanahan, this official said, called the plane “f---ed up” and argued that Lockheed — which edged out Boeing to win the competition to build the plane in October 2001 — “doesn't know how to run a program.” “If it had gone to Boeing, it would be done much better,” Shanahan said, according to the former official. As the Pentagon's No. 2, Shanahan repeatedly "dumped" on the F-35 in meetings, calling the program "unsustainable," and slammed Lockheed Martin's CEO, Marillyn Hewson, according to the second source, a former Trump administration official. "'The cost, the out-years, it's just too expensive, we're not gonna be able to sustain it,'" this person said, quoting Shanahan. The former Trump official said Shanahan "kind of went off" about the F-35 at a retreat for Republican lawmakers last year at the Greenbrier resort in West Virginia. This angered several members of the delegation who had home-district interests in the F-35 program, the former official said. "He would complain about Lockheed's timing and their inability to deliver, and from a Boeing point of view, say things like, 'We would never do that,'" this former official said. Shanahan is the first Pentagon chief to come purely from the private sector since the 1950s and has virtually no government or policy experience. He became the acting Defense secretary Jan. 1, following former Secretary Jim Mattis' resignation over Trump's abrupt decision to pull U.S. troops from Syria and begin drawing down from Afghanistan. He has signed an ethics agreement barring him from weighing in on any matters involving his former employer, the Pentagon's fifth-largest contractor in 2017. Shanahan's experience at Boeing is “his only reference point," the former Trump administration official said. "He doesn't have a lot of other experiences to draw on. He owns it in a powerful way because he doesn't have the military experience, he doesn't have the experience in government. So when he talks about those things, he's very forceful." His remarks about the F-35 stand in stark contrast to those of the president, who regularly praises the stealth fighter despite initially slamming its high costs. The F-35 program, while experiencing a number of setbacks, technical delays and groundings throughout the years, is generally considered to be on the mend. The Air Force and Marine Corps variants have been declared ready to deploy, and the Navy version is expected to reach that point as early as next month. And unit costs have come down for all three variants as the plane matures. Trump has praised Shanahan's ability to cut costs, calling him a “great buyer.” He is now among the candidates the president is considering as a permanent replacement for Mattis. Asked for comment, Shanahan's office released a statement saying he is committed to his agreement to stay out of matters involving Boeing. “Under his ethics agreement, Mr. Shanahan has recused himself for the duration of his service in the Department of Defense from participating personally and substantially in matters in which the Boeing Company is a party,” his office said. Full article: https://www.politico.com/story/2019/01/09/defense-patrick-shanahan-boeing-pentagon-1064203
30 septembre 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité, Autre défense
Joe Gould WASHINGTON ― Democrats unveiled a $2.2 trillion coronavirus relief package Monday night without defense industry stimulus funding, hinting that the billions of dollars defense firms sought to diffuse the economic impact of the pandemic are not coming. Defense officials warned they will have to tap modernization and readiness funds if Congress does not appropriate about $10 billion for defense contractors' coronavirus-related expenses, as authorized by Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act. However, neither the new Democratic measure nor the last draft from Senate Republicans contained any such aid. Smaller than the $3.4 trillion bill that passed the House in May in order to come closer to a compromise with Republicans, the new bill comes as House Speaker Nancy Pelosi, D-Calif., and Treasury Secretary Steven Mnuchin are attempting to revive long-stalled aid negotiations. The House bill could be a final attempt to pass coronavirus aid legislation before the Nov. 3 presidential and congressional elections. The House bill does propose nearly $2.5 billion for defense: $320 million in emergency operations and maintenance funding for the services to buy personal protective equipment; $1.4 billion to pay salaries and other needs of military base facilities like child care centers and post exchanges that are usually paid by revenue-generating accounts; and $705 million for the Defense Health Program to cover COVID-19 prophylactics, therapeutics and personal protective equipment. Senate Majority Leader Mitch McConnell, R-Ky., proposed his own $300 billion bill, but that legislation failed in the Senate earlier this month. That bill left out the $29 billion for defense ― which included $11 billion in Section 3610 reimbursements ― that Republicans proposed in their $1 trillion stimulus in July. The Senate is set to vote on a House-passed continuing resolution to prevent a government shutdown. It would extend the window for Section 3610 reimbursements through Dec. 11, a step sought by trade groups. But there has been no matching appropriation. Defense industry sources say lobbying for aid hasn't gained traction beyond a handful of hawkish Republicans, despite a public push from Pentagon acquisition chief Ellen Lord. The Pentagon's senior-most officials have not been as vocal as Lord, and lawmakers from both parties have been wary of new spending that favors industry after the Pentagon won a timely budget at record levels. “There's never been an appetite for defense stimulus from the parties that matter,” an industry source told Defense News. “I would be shocked if defense, being in neither of the two chambers' bills, ended up in the final bill.” Undercutting the argument that defense industry relief would immediately stimulate the economy, Lord said earlier last week that it will likely take five to six months before industry receives any reimbursements under the CARES Act. Lord also said that only 30 of the hundreds of defense subcontractors shuttered by the pandemic remained closed. Days ago, Lockheed Martin reportedly signed off on a 8.3 percent quarterly dividend increase to pay $2.60 per share and announced plans for an additional $1.3 billion share buyback. Lockheed is one of the main recipients of the Pentagon's accelerated payments to contractors, meant to boost cash flow to large and small defense companies during the coronavirus crisis. In May, Democratic lawmakers questioned Pentagon leaders about why they had spent just 23 percent of the $10.5 billion the department received under the CARES Act. The Pentagon responded with with its spending plan for the aid, which allocated $688 million to aid suppliers of aircraft engine parts, shipbuilding, electronics and space launch. Last week, key progressives, Reps. Marc Pocan and Barbara Lee, demanded an investigation and public hearings into that use of economic stimulus funding for defense contractors, calling it a “Pentagon misuse of COVID funds.” The Pentagon has refuted that characterization. https://www.defensenews.com/congress/2020/09/29/new-covid-bill-dampens-hopes-for-defense-industry-aid/