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Europe willing to export & transfer military high tech “know how” to Brazil & other development markets.

EADS - European Aeronautic Defense and Space Company

With government budgets across Europe set to shrink significantly in the coming years, the parent company of Airbus predicted that the group’s military business would become increasingly focused on markets in Asia, Latin America and the Persian Gulf and it hinted that the outsourcing of European aerospace jobs to those regions was all but inevitable.

“It is quite clear that European markets will decline, or be stable at best,” Stefan Zoller, chief executive of the military division of the European Aeronautic Defense and Space Company, said Saturday. Mr. Zoller was speaking as aerospace industry executives were converging here in advance of the Farnborough International Airshow, which begins Monday.

“Strategically, we have to go where the money is, and the money is around the globe,” Mr. Zoller said.

EADS said Brazil, India, Saudi Arabia and Qatar were among the countries budgeting more for defense and security and where the company is pursuing lucrative deals to supply its Eurofighter jets, Eurocopter helicopters as well as border security and surveillance systems.

Military spending in Brazil rose 23 percent in 2009, while in India the defense budget was raised by 35 percent this year to $40 billion. Analysts at Frost & Sullivan predict that budgets in the Middle East and Persian Gulf regions will surpass $100 billion by 2014.

“These are developing markets, they are huge markets,” Mr. Zoller said.

But such deals are increasingly coming with strings attached that oblige contractors to invest in developing the industrial bases of customer nations and share critical aerospace technology, he said.

“It’s clear that the old concept of exports won’t prevail,” Mr. Zoller said. “These nations are asking for their own competence and for the ramp-up of their own industries.” READ MORE HERE