Economics Minister Rainer Brüderle: "The application will be carefully examined" Photo: Reuters
The federal government provides little opportunity for public support of the General Motors subsidiary Opel. Give it considerable doubt as to whether the 1.5 billion on Tuesday requested euro state aid under current law may actually be granted circles said the federal government. The federal government can forgive loans or guarantees from the Germany Fund to rescue of ailing companies only after very strict conditions.
According to a confidential preliminary investigation at the Federal Ministry of Economic Affairs in providing assistance would be contrary but equally against a number of mandatory rules. Must therefore be expected with a negative test, it was said at the Federal Ministry of Economics. This would have an impact on the review of subsidies in Brussels. Whether the states with Opel locations from its own funds provide assistance, would be another matter.
GM sought on Tuesday to European countries with Opel sites Helps totaling 2.7 billion euros and has submitted a reorganization plan. This provides for the abolition of 8,300 jobs, including 3900 in Germany. In addition, the plant will be closed Antwerp. GM even want the next four years, 11 billion euros to invest in the development of new Opel models.
Where did the heavily indebted company is to take this money, let Opel Managing Director Nick Reilly remains open. Economics Minister Rainer Brüderle (FDP) said just to formally request assistance. This was first examined "carefully by the European Commission". In this way, a subsidy race of the EU countries should be avoided. A spokesman for the EU Competition Commission said state aid is only acceptable if GM prove that the locations can survive in the medium term even without government support.
Significant resistance moved on Tuesday in federal politics. Union Group Vice Michael Fuchs warned against "committing political sins in the case of Opel." He could not "recognize that the concept presented by Opel is so buoyant, that the state should support it." Opel’s promised production cut of 20 per cent not enough, because the capacities are not running at 80 percent, "Fuchs said the Handelsblatt. The Greens and the Left refused to state assistance for Opel. DIHK chief executive Martin Wansleben said: "A special treatment for Opel, it may not be."
There was disagreement in the states with Opel factories. Thuringia’s prime minister, Christine Lieberknecht (CDU), as promised by NRW-Economical Minister Christa Thoben (CDU), a "very constructive and rapid testing. By contrast, Prime Minister of Hessen, Roland Koch (CDU) demanded GM a higher level of co Opel Opel works council chief restructuring. Klaus Franz declined to employee involvement in the restructuring costs, if the closure of the Antwerp plant will not be returned.
"We have the necessary ingredients for a successful future," assured Opel boss Nick Reilly. When asked what happened, when no help, he replied: "That is a very theoretical question. We will fight hard to implement our plan. But our plan depends not only on the German government."
Tags: reorganization plan, michael fuchs, strict conditions, germany fund, federal politics, competition commission