Ministers to facilitate manufacturers’ access to credit

Publication date: 20 February 2009

The Competitiveness Council, on 5 March, is set to adopt conclusions on the automotive industry. A draft will be discussed and possibly approved by the Committee of Permanent Representatives (Coreper), on 20 February. It urges the European Commission and the European Investment Bank (EIB) to present “options” to the spring European Council for improving the industry’s access to credit, including EIB financing (project assessment needs to be faster and simpler, states the draft).

The Commission is also asked to facilitate the industry’s access to “European instruments in support of R&D and innovation” and to present measures to encourage car fleet renewal while monitoring the measures put in place by member states “in order to avoid distortions on the internal market”.

The measures to be presented by the Commission must be neutral technologically – which means they may not target electric, natural gas or other specific technologies – and should not be preferential to any specific segment (small cars, family cars or vans) or particular manufacturer. All interventions “should” – use of the conditional here is noteworthy – fully comply with EU state aid rules and internal market principles.

The draft text also states that “protectionism is not the answer to the current economic situation”. It calls on the Commission to postpone or reconsider any new legislative initiative that could prove too costly for the industry.

Source: Europolitics