- Title: Poland defends decision to scrap Airbus deal
- Date: 8th October 2016
- Summary: WARSAW, POLAND (OCTOBER 8, 2016) (REUTERS) EXTERIOR OF POLISH DEFENCE MINISTRY PLAQUE READING (Polish) "DEFENCE MINISTRY" POLISH DEFENCE MINISTER, ANTONI MACIEREWICZ, ENTERING CONFERENCE ROOM WITH OTHER OFFICIALS CAMERAS (SOUNDBITE) (Polish) POLISH DEFENCE MINISTER, ANTONI MACIEREWICZ, SAYING: "The French side, Airbus Helicopters, during last phase (of negotiations) did not provide a satisfactory proposal, did not answer on Poland's stance, and that is why it had to come to the end of negotiations, to the end of the contract." MACIEREWICZ SPEAKING AT NEWS CONFERENCE (SOUNDBITE) (Polish) POLISH DEFENCE MINISTER, ANTONI MACIEREWICZ, SAYING: "It's not the Polish side who broke those negotiations, I want it to be absolutely clear." MACIEREWICZ SPEAKING AT NEWS CONFERENCE VARIOUS OF CAMERAMEN (SOUNDBITE) (Polish) UNDERSECRETARY OF STATE IN POLISH DEVELOPMENT MINISTRY, RADOSLAW DOMAGALSKI-LABEDZKI, SAYING: "We have come to the point where we have, with total confidence, taken the decision that chances of getting a compromise (in negotiations) do not exist." HANDS DOMAGALSKI-LABEDZKI SPEAKING AT NEWS CONFERENCE DEFENCE MINISTRY LOGO (SOUNDBITE) (English) SECURITY EXPERT AT POLITYKA INSIGHT THINK TANK, MAREK SWIERCZYNSKI, SAYING: "I think it's clear that Poland didn't use all possibilities that could been created by the inter-governmental negotiations between Poland and France." MACIEREWICZ SPEAKING AT NEWS CONFERENCE (SOUNDBITE) (English) SECURITY EXPERT AT POLITYKA INSIGHT THINK TANK, MAREK SWIERCZYNSKI, SAYING: "Law and Justice government was coming to power with a vision about the helicopters. They didn't like the French offer, they didn't like the decisions made by the previous government to follow on with negotiations with Airbus Helicopters and indeed it may seem as though the offset issue has been used as the excuse not to strike the deal with the French." MACIEREWICZ AND OFFICIALS LEAVING NEWS CONFERENCE
- Embargoed: 23rd October 2016 13:42
- Keywords: helicopter Airbus PiS defense Europe
- Location: WARSAW, POLAND
- City: WARSAW, POLAND
- Country: Poland
- Topics: Defence,Government/Politics
- Reuters ID: LVA0015358XFR
- Aspect Ratio: 16:9
- Story Text: Polish Defence Minister Antoni Macierewicz on Saturday (October 8) blamed Airbus for the breakdown of negotiations over a multi-billion dollar helicopter deal that his government scrapped on Friday (October 7).
Poland had agreed to buy 50 Airbus Caracal utility helicopters in April 2015 for 13.5 billion zlotys ($3.5 billion) as part of efforts to modernise its military at a time of tensions with Russia.
Macierewicz told journalists in Warsaw that Airbus did not provide a "satisfactory proposal" on offset terms of the deal.
"That is why it had to come to the end of negotiations, to the end of the contract," Macierewicz told a joint news conference with development ministry representatives who conducted the negotiations.
Often unconnected to the main defence contract, offset contracts outline a set of additional investments in the country that the defence company agrees to make with the purchasing company's government.
A development ministry representative told reporters that Poland had presented a list of several dozen offset proposals to the French side, but none was accepted.
Security expert at "Polityka Insight" think tank, Marek Swierczynski, said that the ruling Law and Justice (PiS) politicians "didn't use...all possibilities that could been created by the inter-governmental negotiations between Poland and France".
French President Francois Hollande had been scheduled to travel with his Foreign Minister Jean-Marc Ayrault on October 13 as part of these inter-governmental consultations, but on Friday postponed his trip after news of the Airbus deal's cancellation.
"Law and Justice government was coming to power with a vision about the helicopters. They didn't like the French offer, they didn't like the decisions made by the previous government to follow on with negotiations with Airbus Helicopters and indeed it may seem as though the offset issue has been used as the excuse not to strike the deal with the French," Swierczynski added.
Poland's previous, centrist government, which was beaten by PiS in elections last October, had agreed the provisional deal. But on October 4, the new administration said it was scrapping the contract altogether.
Members of the new eurosceptic government have said they would rather see the deal awarded to a company that could build the helicopters locally.
Polish media has reported that Warsaw has already begun negotiations with U.S. firm Lockheed Martin's Sikorsky, manufacturer of locally produced Black Hawk helicopters that could be purchased by the Polish army as soon as this year. - Copyright Holder: REUTERS
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