Informal EU Ministers Meet on Car Industry

The main objective of the meeting was for the Commission and Ministers around the table to have an understanding of the current situation of the car sector from a European perspective. The meeting also aimed at agreeing on a common vision that ensures the long-term viability of the car industry in Europe.

The industry faces overcapacity and at the same time reduced consumer demand due to the overall economic climate. To help the industry overcome the short term challenges, the participants supported the continuation of discussions at the European level to find common solutions. Coordination of support measures taken at Member State level should continue to ensure the functioning of the internal market.

Furthermore, the coordination at European level is necessary to achieve a sustainable recovery from the crisis with a minimal social impact. The targeted use of EU instruments, such as EIB loans and structural funds shall be reinforced.

The participants have identified that green technologies can provide a strategic medium term perspective for the car industry to recover from the crisis and to reinforce its competitiveness. Thus, a European strategy on Clean and Energy Efficient Cars should be developed and implemented that sets out the necessary actions to encourage market introduction of green vehicles, including electric cars.

 Jochen Homann, Germany's state secretary at the Federal Ministry of Economics and Technology, said that the commission should evaluate GM's proposed restructuring plan for Opel before his country starts giving the company the state aid that it has requested.  The commission's evaluation "is an essential piece we need before we can decide about state aid," Homann told journalists after the meeting. He added that he had not seen any specific reaction from Tajani.

The commission has said in the past that it is ready to coordinate state aid plans by the European countries with Opel plants, but that it is not in a position to decide on specific business plans.  The commission has to evaluate that state aid granted to GM for Opel's turnaround is compatible with EU rules, but it can only do so once the countries have decided on the specific nature of the aid.

GM wants to get state aid from European governments of EUR2.7 billion as part of its turnaround plan worth EUR3.3 billion for Opel and Vauxhall. Currently no state aid plans have been notified to the commission. Kris Peeters, prime minister of the regional Belgian government of the Flanders --where the Opel Antwerp plant is-- also said the plan should be analyzed by the EU before state aid is granted.

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