Calls Issue "Election-Year Politics"

European Union Trade Commissioner Pascal Lamy calls President Bush's threat to take the issue of Airbus subsidies to the World Trade Organization nothing more than "election-year politics."

The Bush administration's push to end European subsidies for Airbus is a direct result of a "public relations campaign mounted by Boeing," Lamy told The Associated Press.

"Any agreement can be changed, of course," he told the wire service. "But if the 1992 agreement is renegotiated we will do it but we will make sure that the level playing field is maintained and that Boeing does not benefit from its own subsidies."

The agreement Lamy referred to is a civil aviation accord that allows EU governments to pay up to 33-percent of the R&D costs of putting a new model aircraft in the air.

Airbus has often asserted that its government subsidies are no more heinous than the indirect subsidies and government considerations afforded Boeing. The EU has said it will consider discussions aimed at ending those subsidies, but only if Washington agrees to cut its backing for Boeing.

Washington is reportedly considering additional steps to prevent such subsidies if Airbus goes through with plans to build a model to challenge the 7E7.

FMI: www.boeing.com, www.airbus.com