Tension ahead of Brussels GM meeting
ANDREW WILLIS
23.11.2009 @ 09:25 CET
Several member states are set to meet with European Commission officials and representatives from carmaker General Motors in Brussels on Monday (23 November), with renewed tensions over state aid likely to dominate the meeting.
A surprise decision this month by GM not to sell a majority stake in its European arm caused consternation in Germany, with the country's politicians now suggesting they may not offer state aid to the company, which is scheduled to restructure.
Economy ministers will meet with the Commission and GM on Monday (Photo: D.so)
However, other member states have indicated a willingness to provide financial support, reigniting tensions over government attempts to ‘buy' jobs.
The EU's industry commissioner Gunter Verheugen has criticised the reported pledges.
"I understand that some countries have already made informal promises. I find that alarming," he told German magazine Der Spiegel over the weekend.
The magazine says GM Europe has received offers of €400 million from the UK and between €300-400 million from Spain, while Poland has offered tax breaks.
Belgium offered up to €500 million for the GM factory in Antwerp to stay open, but this was declined, reports the magazine.
Mr Verheugen, who said he wanted to "avoid putting jobs up for auction" at GM Europe, will attend Monday's meeting in Brussels, along with his colleagues for competition and social affairs, Neelie Kroes and Vladimir Spidla.
Attending the meeting will be economy ministers from countries with GM operations, and representatives from the American company whose European brands include Opel and Vauxhall.
Germany, home to roughly half of GM's 50,000 European workers, had caused alarm in a number of member states, including Belgium, the UK and Spain, with a €4.5 billion aid promise to Opel buyout contenders.
Until recently that looked to be Canadian car parts manufacturer Magna and Russian state bank Sberbank, with the last minute pull-out by GM executives angering many in Germany who expected the deal to restrict job losses.
A new restructuring plan under the original owners will cost €3.3 billion and could see up to 10,000 European jobs cut.
Germany's Free Democrats, who recently formed a new government with Chancellor Angela Merkel's Christian Democrats, have been the most vocal opponents to any new offers of state aid to the car company.
However the Christian Democrats have remained quieter, with crucial regional elections looming that Ms Merkel must win to keep a majority in Germany's upper house.
