EADS and BAE Merger-New Type of Military Alliance?
In this article by The Economist, the merger plan by (the more civilian focused) EADS and (the more military focused) BAE could lead to “consolidation in the defence industry.” As the article notes, in the 1990’s there was a plan to merge all of Europe’s defence companies into one that was capable of competing with the massive American military-industrial complex; BAE opted out at the time, but with this new merger the european aerospace industry could taken over by one industrial giant. The reason this business decision could have a massive impact on current foreign policy, is the fact that many countries-such as Germany, France and Spain- have stakes in EADS, also other countries- America and Saudi Arabia- have sensitive defence contracts with BAE. With this massive merger at hand the other” European firms left out of the deal… will be actually worried about being left behind.” The consolidation of the defence industry could also consolidate global peace between the countries who have stakes in these massive corporations, so is this the beginning of a new age of peace or could this forming oligopoly be trouble on the horizon?