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Last Updated: Monday, 16 July 2007, 10:24 GMT 11:24 UK
Germany lets France govern EADS
Nicolas Sarkozy and Angela Merkel
Nicolas Sarkozy and Angela Merkel are meeting in Toulouse
Germany is giving up its share of the top job at aerospace firm EADS in exchange for the top job at Airbus.

The French joint chief executive Louis Gallois will take sole charge at EADS while his German co-head Tom Enders gets the top job at Airbus.

The details were agreed ahead of a meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel at Airbus in Toulouse.

EADS' complex structure has been blamed for many of its recent problems.

"We need to be a normal company," Mr Enders said.

Previously, EADS had two chairmen and two chief executives: one French and one German.

Daimler executive Ruediger Grube will become sole chairman of EADS, a post he previously held jointly with France's Arnaud Lagardere.

Mr Gallois confirmed the management shake-up, adding: "We all have the same priorities: that it works."

The changes will be made in the last three months of 2007.

Strong euro

Airbus is currently executing its restructuring programme, called Power8, which will involve 10,000 jobs being cut.

Mr Gallois confirmed that the restructuring plan was based on the euro being worth $1.35.

The comment came after the euro hit a record high of $1.3813 last Friday.

The strong euro is a problem for Airbus as the majority of its costs are paid in the European common currency, while it sells most of its aircraft in dollars.

Mr Gallois denied that more jobs would have to be cut as a result of the strength of the euro.

"It (the plan) does not change because of one point in time," he said.

The new head of Airbus speaks to reporters

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