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FinanceBoeing asks US to intervene over EU's €3 billion loan to Airbus
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Boeing has formally requested the U.S. government to press the European Union for transparency regarding a €3 billion ($3.43 billion) loan package from the European Investment Bank (EIB) to Airbus. The request, made in a letter to U.S. Trade Representative Jamieson Greer, comes just days after the U.S. and EU extended a tariff truce over aircraft subsidies. Boeing expressed surprise at the June 29 loan announcement, which occurred only four days after the truce extension, and is seeking a full accounting of the loan terms to ensure compliance with the 2021 truce agreement's call for an open and transparent process. The EIB denied offering any unusual support, stating the loan carries interest and is part of its normal financing activities. Airbus and Boeing declined to comment, while the USTR and European Commission have not yet responded. The development threatens to reignite trade tensions between the two aerospace giants.
Source report
By Tim Hepher and David Shepardson FARNBOROUGH, England (Reuters) — Boeing has asked the U.S. government to press the European Union for transparency regarding a €3 billion ($3.43 billion) loan package to Airbus, reigniting potential trade tensions just days after both sides extended a tariff truce over jet subsidies.
In a letter to U.S. Trade Representative Jamieson Greer, reviewed by Reuters, Boeing expressed surprise over a June 29 announcement from the European Investment Bank (EIB), the EU’s lending arm. The announcement came just four days after the EU backed the extension of the truce.
Boeing requested that the USTR seek a “full accounting of the terms of this loan” from the EU and demanded an explanation of how the loan aligns with the 2021 truce agreement, which called for an “open and transparent process.”
The EIB stated that it finances thousands of companies annually and denied providing any unusual support to Airbus.
“This is a normal loan, carrying interest, part of the EIB’s overall financing activity,” a spokesperson said.
Airbus and Boeing declined to comment. The USTR and the European Commission did not immediately respond to requests for comment.
($1 = 0.8754 euros)
(Reporting by Tim Hepher and David Shepardson; Editing by Sharon Singleton)
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Boeing asks US to intervene over record EU loan to Airbus