French aerospace orders last year remained at record levels but the long-term weakness of the U.S. dollar against the euro continues to erode profit margins and increase pressure on companies to move production away from France. Last year, just ahead of the 2007 Paris Air Show, new French President Nicholas Sarkozy took office on a pledge to address issues undermining the competitiveness of French industry. The country’s aerospace leaders quietly rejoiced at the prospect of issues such as the 35-hour workweek being confronted, but 12 months later it is hard to discern any tangible impact that the Sarkozy administration has had on the industry.
In an interview before this week’s Farnborough airshow, Charles Edelstenne, chairman of French aerospace industry group GIFAS, urged his government to do more to boost research-and-development efforts, increase the country’s defense spending and improve prospects for French exports. His hope is that France’s six-month presidency of the European Union, which began on July 1, will provide the catalyst for long-awaited change.
