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Focuses on a European Commission (EC) policy paper on the European aerospace industry. The paper urging creation of so-called clusters of consolidated companies as likely the best way to improve the industry's competitive position; Additional measures for improving European industry competitiveness cited in the paper; Figures on United States and European defense industrial base, as of October 6, 1997.

This article reports that tension is mounting between the European Commission and the management of European airlines about the direction Brussels, Belgium, is taking in regulating the sector. Airline representatives are concerned they are being saddled with billions of euros in additional yearly operating costs as they grapple with intense competition and high fuel costs. In the past two years, the commission has been gradually expanding its air transport agenda. But airline representatives appear increasingly unhappy with the situation and feel, to a large extent, they are being treated more harshly than other industrial sectors. Disagreements surround European Commission initiatives ranging from air passenger rights to emissions trading to dealings with countries outside the EU. In the latest sign of tension, Jacques Bankir, chairman of Air France subsidiary Regional and a board member of the European Regions Airline Association has sent a letter to EU Transport Commissioner Jacques Barrot requesting that Brussels rewrite a 2001 white paper on European transport policy.

The article reports on the plan of the European Commission to publish a policy paper at the end of 2006 proposing changes to the current use of copyright levies. Meanwhile, these government-mandated taxes recompense composers, producers and performers in Europe for revenue lost through home copying. It is widely expected the commission will recommend disposing of the levies, and the news has been welcomed by the consumer electronics industry.

The article reports on the launching of a three-month public consultation exercise to identify potential obstacles to the development of Europe's digital entertainment market, by the European Commission (EC). The EC has published a green paper discussion document outlining issues it expects to examine, including digital rights management, interoperability of encryption systems and consumer awareness of intellectual property rights.