Louis Gallois reasserted that EADS had “no other choice” but to invest in the dollar zone.

The group’s industrial activity must be “more present in the dollar zone”, without giving up Europe, if EADS wants to be “on an equal footing” with Boeing. Mr Gallois told the Berliner Forum Zukunft that the company was pushed to do so by “the currency-exchange issue”. The euro yesterday rose to a historical high, at $1.6019. “And serious analysts tell us that it is not over yet. As an entrepreneur, I must be prudent, I have no means to tell whether the dollar will rise in future. I do not know. I cannot take the chance for the sake of the company, so I must consider the situation as it is”, he declared. Mr Gallois emphasised that the cost of an engineer in the US is 30 to 40 % lower than in Europe at present. He also pointed out at the “paradoxical situation” of EADS, the order books of which are full, while “its margins are eroding” due to the weak dollar. This is why the group is considering several options, including expanding its supply network outside of the euro zone. He called on the group’s suppliers to help it reduce costs by moving more of their own production to the dollar area. AFP (22/04), Reuters (22/04), DPA (22/04)