1. Giancarlo Grasso European Parliament Brussels – 22 September 2005 EPP-ED HEARING ON 7th FRAMEWORK PROGRAMME FOR RESEARCH & TECHNOLOGICAL DEVELOPMENT Finmeccanica Position

2. ANSALDO SIGNAL Finmeccanica Group AERMACCHI ALENIA AERONAUTICA OFFICINE AERONAVALI AGUSTAWESTLAND ALCATEL ALENIA SPACE * TELESPAZIO * OTO MELARA MBDA WASS ANSALDO SIGNAL ANSALDO TRASPORTI SISTEMI FERROVIARI ANSALDO BREDA ELSAG ANSALDO ENERGIA ATR 18% 1,709 € M15% 1,428 M8% 782 € M21% 2,056 € M 12% 1,148 € M 4% 391 € M 14%1,375 € M 8%729€ M DEFENCE SYSTEMS INFORMATION TECHNOLOGY TRANSPORTATION ENERGY Data from Annual Report as of December, 31 th. 2004 : Revenues 9,387 Euro mln (+8,6% vs 2003) Employees: 51,026 AERONAUTICSHELICOPTERSSPACEDEFENCE ELECTRONICS SELEX Communications SELEX Sistemi Integrati ELETTRONICA GALILEO AVIONICA SELEX Sensors and Airborne Systems SELEX SAS Ltd Orizzonte Sistemi Navali *JV since 1st of July 2005

3. Some issues for FP7:  The benefits of high-tech sectors  Closer industry involvement  Selection of priority themes In an environment of limited budgets, reduced European economic growth and competitiveness, FP7 should aim to the promotion of technological innovation

4. High-tech sectors  High-tech industrial sectors provide benefits for other sectors not directly related (spill-over effects)  Microelectronics, aerospace and security/defence sectors (about 2% of world GDP) have positive influence on about half of world GDP  Products and technologies in Aerospace and Defence must continuously evolve to guarantee security in a rapidly evolving scenario Source: L’innovazione tecnologica come motore di crescita Ambrosetti, Roma, 2004

5. Industry involvement  To increase innovation capabilities, a closer involvement of Industry in FP7 is recommended  High-tech sectors imply large companies with the critical mass needed to embark into bold innovation initiatives  Innovative SMEs are a fundamental component in carrying out RTD projects led by larger companies, as well as research institutions

6. Instruments  The establishment of European Technology Platforms has been important in setting meaningful research goals, reducing fragmentation and possibly reducing the time required for the development of innovation  Next step will be to define FP7 work programmes closely related to international market needs of relevant industrial sectors  JTIs are new important instruments, even though their implementation might not be easy

7. Recommendations  Finmeccanica supports the Commission proposal for FP7  Air Transport System: a fundamental research area comprising new green aircraft technologies and the future Air Traffic Management system  Air Transport System: a fundamental research area comprising new green aircraft technologies and the future Air Traffic Management system  Space: Earth Observation technologies and solutions for Environment and Security (GMES)  Space: Earth Observation technologies and solutions for Environment and Security (GMES)  Security: a cross cutting priority theme with a strong impact on transportation, critical infrastructures, border surveillance  Security: a cross cutting priority theme with a strong impact on transportation, critical infrastructures, border surveillance  ICT: technologies and solutions as wideband telecommunications