Ref. Ref.   Ares(2020)6881565 Ares(2020)2856338    - 18/11/2020 - 03/06/2020 Mr. Margaritis SCHINAS Vice President for Promoting our European Way of Life EUROPEAN COMMISSION Rue de la Loi, 200 1049 BRUSSELS BELGIUM BRUSSELS, 29 May 2020 Subject: ASD position on COVID-19 Dear Vice President, The COVID-19 pandemic represents an unprecedented crisis and has led to a sharp downturn of the world economy. Over the past weeks, the European Commission and Member States have taken important decisions to help industry in Europe to survive this shock. The Commission’s recent proposal for a stronger EU budget (Next Generation EU and a reinforced MFF) is another important step to address the damage brought by the pandemic and kickstart a sustainable recovery. The success of the recovery will depend on multiple factors. It will be particularly crucial, in the framework of a coherent approach, to focus investments on key technologies and strategic areas that can strengthen EU’s strategic autonomy, resilience and long- term competitiveness. Moreover, these investments must be accompanied with the appropriate legislative and regulatory measures to support trade, growth and employment. Finally and more than ever, it will be key for EU to develop a level playing field at the international level. I                                                 ASD, which is the association of aerospace and defence industries of Europe. It represents the interests of more than 3000 companies of all sizes from across the Union. Our industries form an ecosystem of particular strategic importance for Europe’s security and technological leadership. ASD | Rue Montoyer 10 I 1000 Brussels, Belgium I T: +32 2 775 81 10 I info@asd-europe.org I www.asd-europe.org

We count on the European Commission to take this importance into account in the forthcoming negotiation about the next EU budget and the elaboration of the recovery instruments. Indeed, the impact of COVID 19 crisis is the most serious for the European aerospace and defence sectors since the end of the Second World War. In this sharp context and over the past weeks, the different working groups of our association have joined efforts to identify measures that are needed to overcome the economic crisis triggered by COVID-19. Attached you will find the fruits of their reflection. The paper covers all activities represented in ASD (civil aeronautics, defence, space and security) and distinguishes between short- and medium-term measures. We are convinced that the implementation of these measures would enable our industries to overcome this unprecedented crisis and to continue to contribute to achieving the policy objectives of the Union. I hope this document will provide a useful contribution to your work. The ASD Secretariat and our members stand ready to discuss our proposals in greater detail with your team and the Commission services. Yours sincerely, Note: the same letter has also been addressed to: - Mr Frans TIMMERMANS, Executive Vice President for the European Green Deal - Ms Margrethe VESTAGER, Executive Vice President for a Europe Fit for the Digital Age, - Mr Valdis DOMBROVSKIS, Executive Vice President for an Economy that Works for People - Mr Josep BORRELL FONTELLES, High Representative/Vice President for a Stronger Europe in the World - Mr Johannes HAHN, Commissioner for Budget and Administration - Mr Phil HOGAN, Commissioner for Trade - Ms Mariya GABRIEL, Commissioner for Innovation, Research, Culture, Education and Youth - Mr Paolo GENTILONI, Commissioner for Economy - Ms Ylva JOHANSSON, Commissioner for Home Affairs - Ms Adina VALEAN, Commissioner for Transport - Mr Thierry BRETON, Commissioner for Internal Market Page | 2