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Europe Daily Bulletin No. 10074
GENERAL NEWS / (eu) ep/industry

EP wants more robust Commission response to threat against motor industry

Brussels, 09/02/2010 (Agence Europe) - The wave of indignation caused by General Motors' decision to close the Opel factory in Antwerp was naturally echoed in the European Parliament, which, not for the first time, is asking for explanations about this multinational's European policy. For months now, European commissioners have been succeeding each other on this subject in the House: Günter Verheugen in relation to industrial policy aspects, Neelie Kroes for competition and, on Monday 8 February, Employment Commissioner Vladimir Špidla during his last appearance before the European Parliament. Resilient MEPs heard comments that had nothing new about them - the Commission has been closely following the situation from the outset and it would “appear that the restructuring plan is not founded on non-economic considerations”.

Vladimir Špidla acknowledged that the Commission is not familiar with all the details of this plan, while affirming his willingness to remain vigilant, especially when it comes to the possible granting of state aid. The European commissioner stressed that, even though the role of the Commission does “not normally involve ex ante assessment of the commercial logic of restructuring”, its services have made an assessment at the request of the Competitiveness Council.

“Sad” was the adjective used by Špidla to describe the closure of the Antwerp plant, while confirming that, although the Commission was unable to prevent such a decision, it can do something to put matters right, including with the attribution of assistance from the European Social Fund and the European Globalisation Adjustment Fund.

These remarks received a cool welcome from MEPs who took the floor - mainly Belgian representatives, although they all underlined the European nature of the problem and the need for a European response to the threats weighing upon industrial sectors which, traditionally, have always been the most important for Union territory.

The Commission must be more proactive in using the instruments available to it if it does not wish to jeopardise its credibility, protested Ivo Belet (EPP, Belgium). The Commission must “take matters in hand”, said Socialist Kathleen Van Brempt, and the president of the ALDE Group, Guy Verhofstadt, exclaimed: “If you do not yet have this business plan then it is about time it is sought in order to examine the inconsistencies”. In future, according to Verhofstadt, issues relating to the restructuring of multinational companies and affecting the interests of Union countries should be referred to the Commission. “You have not said it but it is general knowledge that General Motors is banking on receiving €2.7 billion in state aid”, the Green member, Bart Staes, said indignantly. Derk Jan Eppink (CRE, Belgium), on the other hand, pointed a finger of blame at the policy of the Greens and ecologists. By recommending “unaffordable” cars, that is what causes plant closures, he said, going on to highlight the difficulties of the chemical industry in Belgium. If Bayer effectively pulls out of Flanders, job losses will be 64 times greater than those in the Opel factory in Antwerp. Opel is not a “dinosaur, or a factory that is moribund”, Philip Claeys of Vlaams Belang said. His criticism was aimed at the Belgian tax system, which means that “workers cost a lot and do not earn very much”.

German Social Democrat Jutta Steinruck (who commented: “I am the only German taking part in this debate”) considered that, unless member states react, the “door will be open to relocation”. Workers' consultation rights have been negotiated and they must be respected, she chided.

General Motors is not closing down the factory in Antwerp because it is in difficulty, said Patric Le Hyaric of the GUE/NGL Group. “It is closing in order to exploit South Korean workers”, he reproved, before condemning the “anti-social management that generates enormous waste”. In his view, the new Commission should make proposals allowing trade unions to have an idea of the multinational management that employs them, without this being restricted to their plant alone.

Also from the GUE/NGL Group, Ilda Figueiredo of Portugal pointed out that Opel has dismissed some 2,000 workers in her country, by relocating the plant to Spain - not for salary reasons but as part of a strategy to concentrate production. The dangers of globalisation and of relocation were vehemently slammed by Paul Nuttall (EFD, Britain), while Inés Ayala Sender of Spain looked towards the future, inviting the new Commission not to restrict itself to the role of observer but rather to “develop a new active industrial policy”. (L.G./transl.jl)

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