(AFP) Germany has serious doubts over a proposed merger between EADS and BAE Systems, according to a parliamentary commission report that cites concerns on the future of European sites, German news agency DPA reported Monday.

The report by the German parliamentary economic affairs commission says there have been inadequate guarantees on keeping company sites open. EADS has operations in France, Germany and Spain.

It also notes reservations over the fact that EADS, the parent company of Airbus, would hold only 60 percent of the new group under the proposed deal, and that veto rights of participating countries would be limited.

A ministry spokesman described the document as a “technical report” which contains recurring questions over the proposed merger between British arms maker BAE Systems and European aerospace giant EADS revealed this month.

Defence ministers of Germany, Britain and France are due to meet this week to draw up a common position on the possible $45-billion (35-billion-euro) deal.

SOURCE AFP