Austria Insists on Reparations from Airbus for 2003 Eurofighter Sale

(Source: Austrian Ministry of Defence; issued Feb. 08, 2020)

Austria has long suspected that it overpaid for the Eurofighters it ordered in 2003, and that large sums were skimmed off the contract. Defense Minister Klaudia Tanner is now insisting that Airbus pay reparations worth at least €183.4 million. (Austrian MoD photo)

VIENNA --- With the published agreement between Airbus and the US authorities, the so-called Deferred Prosecution Agreements, Airbus has admitted having committed massive misconduct to the US Department of Justice and US Department of State in several cases and has also incurred high fines.

The agreement expressly confirms unfair conduct on the part of Airbus in connection with the sale of Eurofighters to the Republic of Austria in 2003, and confirms the suspicion of fraud reported by the Federal Ministry of Defense in 2017 that part of the amount paid by the Republic of Austria for the Eurofighter as the purchase price of € 183.4 million had flowed through Germany into the dubious Vector network and to others, through brokers and mailboxes to serve unfair business goals.

"Immediately after I took office, I took up the matter and gave the order to vigorously pursue the Republic of Austria's claims for reparation against Airbus," said Federal Minister Klaudia Tanner.

In February 2017, the Financial Procurator for the Republic of Austria joined the fraud proceedings in Austria against Airbus and others, with a claim for damages of at least € 183.4 million.

Airbus has recently admitted serious misconduct and unlawful business practices to the French and British authorities. Airbus had to pay substantial fines for this. In the agreement with the US authorities, Airbus has now openly admitted its misconduct and unlawful business practices.

In Austria, the judge's report to the parliamentary committee of inquiry, which only ended in 2019, unequivocally stated that the Republic of Austria had been misled in the purchase and had only paid € 183.4 million too much because of this.

"We have been pursuing the legitimate claims of the Republic of Austria against Airbus for years with all the means of the rule of law. Airbus' admission should now also bring charges to Austria," said Wolfgang Peschorn, President of the Financial Procurator.

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