The European Union's executive will use the force of the law to fight countries which give unfair support to their car industries, whether it happens in the EU or the United States, DPA quoted officials in Brussels as saying Wednesday. The threat comes as the US and EU governments are rushing to prop up their auto industries in the midst of the worst economic crisis in 60 years. "We have no interest in the collapse of the US car industry, but what happens there to help them must follow international rules. We will not hesitate to take the necessary steps if that should not happen," EU Industry Commission Guenter Verheugen said. The Brussels-based executive will make sure that national governments stick to the rules on fair competition "both inside and outside the (EU) single market," he stressed. The comments come as car makers in the US and EU member states are crying out for government support to see them through the worst economic downturn in 60 years. The car industry accounts for some 12 million jobs across Europe, but it has been especially hard hit by the global economic crash, with new passenger car registrations in January slumping by 27 per cent compared with the same month last year. France, Italy, Spain, Britain, Germany and Sweden have all launched plans in recent days to support car manufacturers in their home markets. But concerns have arisen over clauses such as a French condition that any company which receives state aid should promise not to close its factories in France. Such a clause would break the EU's rules on the free movement of companies, and could force the closure of French-owned factories in other EU member states, commission officials have warned. "You can't be a believer in the single market for car sales and on the other hand say 'I'm not a believer in the single market for production'," EU Competition Commissioner Neelie Kroes said.
