Projects that may be hit by European defence cuts

German Defence Minister Karl-Theodor zu Guttenberg looks at a Eurofighter of the Bundeswehr Fighter Squadron 74, in Neuburg.

From Reuters:  With governments across Europe planning to slash tens of billions of euros from their defence budgets, major projects are under scrutiny for possible cancellations or cuts.

BRITAIN

— Eurofighter Typhoon combat jets, made by Britain’s BAE Systems (BAES.L) together with Italy’s Finmeccanica (SIFI.MI) and European aerospace group EADS (EAD.PA).

Britain has ordered 160 of the 70-million-pound planes, but analysts say it may scrap plans to buy an additional 48. …

— Orders for Lockheed Martin Corp’s (LMT.N) F-35 Joint Strike Fighter (JSF) could be vulnerable. British firms involved in its development include BAE and Rolls Royce (RR.L). …

Analysts say the Netherlands, Italy and Norway will also look at trimming Joint Strike Fighter orders. …

GERMANY

— A preliminary report has recommended big cuts in orders for the NH90 transport helicopter and the Tiger combat helicopter manufactured by EADS. Germany has complained about delays and performance problems with both helicopters.

— Germany may also abandon the purchase of the last partial tranche of 37 Eurofighters or resell the planes, and abandon the purchase of the Franco-German-Spanish Talarion EADS drone. …

FRANCE, ITALY

The two countries have decided to buy fewer Fremm Multipurpose Frigates designed by DCNS/Armaris and Fincantieri. …

NATO

Doubts have been raised about the future of NATO’s biggest joint procurement scheme, the 1.3-billion-euro Alliance Ground Surveillance drone project, after Denmark became the latest of several countries to pull out.  (photo: Reuters)

Image: reuters%207%2016%2010%20Karl-Theodor%20zu%20Guttenberg%20Eurofighter.jpg