Gag orders | Auto expert John Cadogan | Australia
A spokesman for the Commission said Tuesday, February 3 that the French Industry Minister Luc Chatel is to discuss with the Commissioner of Competition Neelie Kroes on Wednesday to discuss new support measures for the automotive industry that are likely to be controversial.
The French government is preparing to provide low interest loans to French car manufacturers, provided they buy specific volumes of auto parts from local suppliers, according to an article in the Financial Times.
Subscribe now for unlimited access to EUobserver.
Join 30-day free trial with no obligation to complete subscription only 15 months or 150 years.
All items upscale, analysis, comments and inquiries.
EUobserver is the only media independent information covering EU affairs in Brussels and the 28 member states.
If you already have an account, click here to login.
The automotive sector has been recognized by Member States as a vital area for the protection of European Commission Photo jobs.
The move comes shortly after the EU ambassador to the US, John Bruton has criticized an article contained in the Buy American stimulus package of 700 billion 900 billion currently being debated by the Senate of the United States.
The President Obama has a great opportunity to give direction to the world that few American presidents have had for generations, M. Bruton told Reuters in an interview.
If the first major piece of legislation that he signs is one that is considered detrimental to the economic interests of other countries in a way that is unnecessary and wasteful, its ability to give the kind of leadership the world needs at this time is considerably and unnecessarily reduced.
European steelmakers have asked the Commission to file a complaint with the WTO if the Buy American provision limiting the participation of foreign steel company in infrastructure projects funded by the stimulus package is signed into law.
The spokesman of the Competition Commission also said Tuesday that 500 million French aid package to spend more than two years on developing green technologies in the automotive sector was approved by the commission.
France is not alone in the search for measures to support the automotive industry in difficulty.
Last week, the Business Secretary in the UK Mandelson launched a plan 2 2 6 billion to 3 billion act as a lifeline for automakers operating in the United Kingdom funds are related to development of low-carbon initiatives.
However, the French proposal is likely to cause concern Buy in London, where policymakers insist members of government support plans for specific sectors should not lead to new protectionist barriers.
Speaking before a meeting to discuss car supports it two weeks ago, Mandelson said it is important that the EU Member States offer real help to businesses hit hard in a way which do not distort competition in the single European market.
Some economists argue that the wave of protectionism after the Wall Street crash in 1929 has worsened the economic crisis and contributed to a global depression in the 1930s.
cheap loans if automakers Buy French, loans, French, discuss support measures.