Brussels, 19/10/2009 (Agence Europe) - The European Commission is concerned that German state aid promised to Opel as part of the Magna/Sherbank bid infringes Community rules. In particular, it is concerned that the aid was related to this specific bid and not offered to other possible purchasers, it says in a letter sent to Berlin on 16 October. The Magna/Sherbank bid contains commitments on the geographic distribution of employee redundancies in the various states where Opel factories are located.
In the past, Opel has said that there would also be redundancies in Germany. However, the job losses, under the Magna/Sherbank proposals, will be much greater in Opel factories in other member states: Austria, the United Kingdom, Spain, Belgium, Poland and Hungary. These countries have expressed their concerns about the Magna/Sherbank plan to Competition Commissioner Neelie Kroes. In the letter sent on Friday, Kroes notes that restrictions on distribution of company activities cannot be imposed on a purchaser. Magna is a Canadian company which makes car spare parts. Sherbank is a Russian investment company. The aid proposed by Berlin amounts to €4.5 billion in both federal and regional credits and bonds. Kroes is supported in her position by the European industry commissioner, German Günter Verheugen, who expressed his desire on German radio this weekend for a “rapid solution” to this problem to be found.
Kroes' spokesman told press on Monday 19 October that the German authorities had already reacted, informing General Motors (Opel's current parent company) and the Opel Trust (the temporary body responsible for the sale of the Opel subsidiary) that the aid offered would no longer be available only to Magna/Sherbank, but would be there for any other possible purchaser. If the parties involved say that the transaction is free of all state influence in the choice of purchaser, or that another buyer has been selected, then, “That would be good,” the spokesman said, but, “It would not necessarily be the end of the story”. The Commission would examine the “precise details” of the financial arrangements of the final agreement rather than sign a blank document, the spokesman said. (C.D./transl.rt)