Epic Watch

THE latest Export Finance and Insurance Corporation Market Watch newsletter points out the growing risk of diplomatic rifts between America and ‘old’ and ‘new’ Europe could spill over to the commercial arena. “Of special concern to German and French companies is the potential for an American boycott of their products in industries where Washington is a large buyer, such as defence and aerospace,” the EFIC says.

“The head of the German Aerospace Centre claimed last week that NASA had put on hold a joint venture project to develop a mini-space shuttle because of Berlin’s opposition to Washington’s hardline policy on Iraq.

“These developments have the potential to throw more sand into the wheel of globalisation than any war itself could do.”

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