Brussels, 05/03/2009 (Agence Europe) - After an exchange of views on the impact of the financial crisis on the competitiveness of the European economy as a whole, EU Industry Ministers held a long discussion on the specific situation of the car industry, and adopted conclusions confirming the need for urgent action with short-term measures that are consistent with those of the long term, while, at the same time, abiding by internal market and state aid rules.
The Council hailed the speed of reaction of the European Commission which, after its European economic recovery plan that was adopted at the end of 2008 and which proposed timely, targeted and temporary measures for industry across the board, put an action framework for the car industry on the table at the end of February (see, for example, EUROPE 9851), said President in office Martin Øiman after the Council. This framework limits government action highlighting the need to observe single market and state aid rules. “I think the Union can go a little bit further,” added he added, however, while cutting short speculation on a European rescue plan for the car industry. Øiman said that ministers had called on the Commission to simplify procedures for granting EIB funding and funding for the 7-year R&D programmes. Above all, consensus took shape to underline the responsibility incumbent upon the automobile sector to face up to its own structural and over-capacity problems, and to invest in new technologies, especially green technologies. The public authorities, for their part, can help the motor industry by simplifying the regulatory framework in which the industry evolves, the Czech minister admitted. Industry Commissioner Günter Verheugen for his part could not have been clearer. He said there will be no plan to rescue the European automotive industry as the European plan for this sector already exists - CARS 21, a high level platform set in place in 2005 for recommendations concerning the sector's long-term competitiveness. More generally speaking, “there will be no rescue plan for any specific industrial sector”, he stressed.
The industry commissioner nonetheless suggested to ministers that they organise an extraordinary meeting of European countries where General Motors, the US car maker in great difficulty, has a foothold, in order to coordinate their reactions. General Motors' difficulties in the United States have caused fear for the future of the European subsidiary, Opel, which is mainly present in Germany with four production plants but also in Belgium, Spain, Poland and the United Kingdom. General Motors also has a Swedish manufacturer, Saab, but has already decided to disinvest. “This meeting is not aimed at a rescue plan for General Motors. The fate reserved for it will depend on the information that we can get together”, Mr Verheugen said, hoping a little earlier that “Europeans will be able to coordinate their action on this question, and that it will not be every man for himself”. General Motors, which is seeking to convince several European countries to fly to its rescue for its continental activities, is suspected of seeking in this way to give rise to competition between the governments concerned for the best offer.
In its conclusions, the Council underlines that all public support given to the motor industry at European and national levels must be as a complement to efforts made by the sector itself. The sector is responsible for taking the necessary measures to face up to the crisis, in full respect of Community regulations, it said, adding that it is essential for the efforts by the sector to concern the finalisation of innovative products, providing the best solutions in terms of quality, safety and environmental results. The Council calls on the Commission and the EIB to present, together, to the Spring European Council new solutions for reducing the shortfall in liquidities and to improve access to funding for companies of the sector, including with EIB funding (through the European clean transport mechanism, (for example), to speed up and simplify the evaluation and funding of projects, without amending assessment criteria and without discriminating between builders or member states. The Council also discussed: - continued investment in R&D and innovative and clean technologies; - retaining a qualified labour force; - reducing over-capacity; - defining strategies to ease socially responsible restructuring of the sector, in cooperation with social partners, the transition being facilitated through use of the European Adjustment Fund and the European Social Fund; - incentives to renew the car fleet; - taking account of the external dimension of competitiveness and a dialogue with third countries on the future of the industry; - maintaining a regular dialogue with stakeholders within CARS 21. (E.H./transl.jl/rt)