Boeing's financing of its new 7E7 "totally unacceptable:" EADS

PARIS (AFP) - The co-chief executive of the European defense and aeronautic consortium EADS denounced the subsidies he said were enjoyed by US rival Boeing in the development its 7E7 aircraft as "totally unacceptable."
Ratcheting up the rhetoric in a brewing US-European Union trade war, Philippe Camus told the French radio station BFM: "The method by which the 7E7 is financed is totally unacceptable from our point of view."
Previously he had simply said that the financing of the 7E7 posed a problem for Airbus, the European aircraft maker 80 percent owned by EADS and Boeing`s arch-rival.
"We want the financing of the 7E7 to conform to international rules and it does not today."
A study published by the Canada-US trade center at the University of Buffalo in New York determined that the 7E7 program could benefit from six billion dollars` worth of subsidies liable to be challenged by the EU`s executive commission.
The US government maintains that Airbus has been receiving illegal state subsidies and last week unilaterally abandoned a 1992 accord with the EU that governed state assistance to the aircraft manufacturing sector on both sides of the Atlantic.
Washington also lodged a complaint at the World Trade Organization, triggering a counter-suit on the subsidy question from the European Union.