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EU ministers discuss controversial Opel rescue plan
Published in Saudi Press Agency on 24 - 09 - 2009


European Union industry ministers were meeting in
Brussels today to discuss growing concerns that Berlin's rescue
of trouble carmaker Opel may jeopardize jobs outside Germany, according to dpa.
British Business Secretary Peter Mandelson fired the latest salvo
with a letter to the European Commission questioning the viability of
Magna International's plan to buy Opel from General Motors.
"We do not believe the case has been demonstrated that the current
Magna proposal is commercially the most viable plan," Mandelson wrote
in the letter, extracts of which were published by the Financial
Times on Thursday.
Mandelson urged the EU executive in Brussels to ensure "a
commercially based outcome rather than one determined by political
intervention and subsidies."
A commission spokesman confirmed receiving the letter, but pointed
out that his office would not be taking a position until it received
the official plan from Berlin, which is not likely before Sunday's
German general election.
"We do not expect to receive the plan before next week," Jonathan
Todd, spokesman for Competition Commissioner Neelie Kroes, told the
German Press Agency dpa.
Opel employs more than 25,000 people in four factories in Germany,
but also has plants in Belgium, Poland, Spain and Austria. Opel's
sister company in Britain is called Vauxhall.
Some 5,000 Opel workers rallied Wednesday in Antwerp to protest
against the possible closure of Opel's Belgian plant. A similar
protest was held in the Spanish town of Zaragoza on Saturday.
The German government is underwriting the Magna deal with 4.5
billion euros (6.6 billion dollars) in loans and credit guarantees.
But concerns that Berlin may only provide financial aid if jobs
are preserved in Germany have sparked angry responses from other
member states.


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