EU nations agree to coordinate rescue efforts for Opel
- Source: xinhua
- [10:22 May 30 2009]
- Comments
European Union (EU) member states agreed on Friday to avoid unilateral action and coordinate their efforts to shield the European carmaker Opel from an imminent bankruptcy of its US parent General Motors.
"All participants agreed that any financial support by one or more member states must be based strictly on objective and economic criteria, and not include non-commercial conditions concerning the location of investments and the geographic distribution of restructuring measures," the European Commission said in a statement after hosting a meeting with ministers from 18EU countries.
The ministers reaffirmed a consensus reached at their first meeting on the situation of GM's European subsidiaries in March, saying that EU rules, in particular on state aid, must be fully respected and that no national measures should be taken without prior information and coordination with other involved countries and the Commission.
The US automotive giant GM is heading to bankruptcy, putting the future of its European subsidiaries into doubt.
GM currently has plants in Germany, Belgium, Poland and Spain for Opel, Vauxhall in Britain and Saab in Sweden, employing 55,000people in total.
Germany, where GM has most factories and employees in Europe, is negotiating with the US carmaker on taking control of Opel and providing emergency financing to keep it afloat in the event of the bankruptcy of its parent.
The German government is proposing to create a five-person trust to run Opel for up to six months with a 1.5-billion-euro (2.1 billion US dollars) bridge financing provided by Berlin before a buyer takes over.
Canadian auto parts maker Magna emerged on Friday as the favorite bidder for Opel.
But there is a concern among other EU governments that Berlin may choose a buyer on condition that German jobs should be preserved, which could mean closure of factories in other countries.
Belgian Prime Minister Herman Van Rompuy called on Wednesday for a more global European participation in deciding the fate of Opel, prompting the Commission to call for a special meeting among EU ministers on Friday.
German Deputy Economy Minister Peter Hintze, who attended the meeting, assured his EU colleagues that the German bridge financing for Opel would benefit all its European plants.
"What we are doing is designed for a positive effect for all of Europe. I believe that was clearly understood today," he said.
Belgian Economy Minister Vincent Van Quickenborne said: "It is clear, stated by the Germans, that the bridge loan will be fed towards all existing plants, and not just to the German plants."
EU ministers also urged the United States to fully support the ongoing efforts in the EU to reach a viable solution for the European subsidiaries, saying GM worldwide would also benefit.
Overnight talks on Opel between the German government, GM and the US government ended in the early hours of Thursday morning without a deal after GM demanded 300 million euros (420 million US dollars) more in short-term cash, with Berlin blaming the failure on GM and the US Treasury.