Brussels, 16/01/2009 (Agence Europe) - Industry Ministers, meeting in Brussels on 16 January, under the chairmanship of Commissioner Günter Verheugen, to discuss the situation in the car industry which has been severely affected by the financial crisis, agreed on the need for coordinated public support for European car manufacturers to help them overcome the economic slowdown. Several projects were discussed, such as tax incentives and scrapping incentives. Although no common measures were agreed, the meeting confirmed that supplementary EIB aid was being looked at. The Commission and the Czech Presidency will, in March, bring forward proposals following these discussions.
In a statement, the Commission highlights member states' concern over the deteriorating situation of the European car sector which has seen sales fall by almost 8% in 2008, with a worsening trend over the last few months of the year threatening jobs and making prospects for 2009 even, more sober. Primary responsibility lies with the sector: ministers called on the European industry to take the necessary steps to address structural problems, such as overcapacity and the need to invest in innovative technologies. These efforts should be taken in close cooperation with their employees and taking into account the suppliers' and retailers' needs. While ensuring long-term competitiveness, short-term public support for the sector, as reflected in the European recovery plan and national programmes, is felt to be “decisive”. Ministers agreed that public support had to be focused on innovation ensuring high-tech solutions delivering in particular fuel efficiency, CO2 reduction and vehicle safety. Public support needs to be “effective and co-ordinated”. It should respect key principles such as open global markets, fair competition, better regulation and cooperation and transparency. Any “race for subsidies” is to be avoided, say ministers. In order to ensure better co-ordination, ministers indicated willingness to closely cooperate with the Commission, in particular on fleet renewal, social transition and skill retention and action on financing and suppliers. Ministers called on the Commission to advance rapidly with the implementation of the European Economic Recovery Plan, in particular, as regards access to finance and retaining the skilled workforce through the European Globalisation Fund and the European Social Fund, and the Temporary Framework for more flexible application of the state aid rules. Ministers welcomed the support for the sector promised by the EIB and called on the Commission to explore how the use of the loans envisaged for this sector can be further improved without discriminating between manufacturers and member states. They agreed on the need for an early dialogue with the new US administration on the future of the motor car industry. (E.H./transl.rt)