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BAE merger deal called off

Major defence firms BAE and EADS are blaming politicians for the collapse of their £25bn merger deal.

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Labour: 'Fresh plan' needed after BAE deal collapse

Shadow Defence Secretary Jim Murphy has urged government ministers to "urgently convene" talks to "develop a fresh defence industrial plan" after the proposed BAE-EADS merger was called off.

Mr Murphy said:

Now that the answer to the future of UK defence manufacturing cannot be found in France and Germany, it must lie in Britain and other established markets.

Those Conservative MPs who were warning against the involvement of French and German governments must now demand a more active industrial strategy from the British government.

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