Local view for "http://purl.org/linkedpolitics/eu/plenary/2009-09-14-Speech-1-093"
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"Mr President, honourable Members, I am very grateful that you have given me the opportunity today to comment on the situation in the European car industry in order to inform you of a number of aspects of our European response to the crisis and of the developments in relation to the General Motors Group. In so doing, I will comment on the industrial policy and social aspects, while my fellow Commissioner, Neelie Kroes, will take over when it comes to State aid law.
The European Globalisation Fund adopted by the Commission two years before the crisis has received seven applications from six countries from the automotive sector over the last two years. With around EUR 40 million, we are helping around 7 000 workers back into the labour market. We have also provided a forum to discuss the necessary next restructuring steps, which must be implemented in a socially responsible manner. We welcome the fact that many car makers have been able to prevent dramatic job cuts by implementing short-time working and other forms of flexible working – mostly agreed between the social partners.
There is agreement between all those involved about the long-term prospects of the European car industry – namely that we must build the most advanced vehicles in the world in Europe, in other words, the cleanest, the most energy-efficient and the safest. This strategy means that it is necessary to take a leap forward in terms of automotive technology. We are helping bring this about through the EIB and the Seventh Framework Programme for Research. The Commission will also continue to do all it can to provide reliable basic conditions for this key European industry and those employed in it.
Twelve million workers have a job that is directly or indirectly dependent on Europe’s car makers. That is why, back in October 2008, the Commission met with all the parties involved – including both the Member States and the social partners – as part of the CARS-21 process, to discuss a common way to manage the crisis. The scrapping premiums and additional financial aid from the European Investment Bank (EIB) were discussed at the meeting, so as to prevent this important sector, from an employment policy point of view, from foundering in the maelstrom of the crisis.
We also need to act in order to ensure that the crisis does not jeopardise the achievement of our statutory requirements to reduce CO
emissions from passenger cars by 2012. I will come back to this later on. Out of concern about developments relating to General Motors, the Commission called a political meeting of all the Member States back in January this year in order to provide transparency and to guarantee compliance with European legislation. Three such meetings have since taken place. Joint political arrangements were reached amongst the 27 Member States at these meetings, and these were also made public.
The first policy agreed was that a trusteeship solution coordinated by Germany was the right way to go in order to protect General Motors Europe from the insolvency of the US-based parent company. We are now in a position to say that this trusteeship solution prevented GM’s European car factories from being dragged into insolvency with the parent company.
The next point agreed was that the trusteeship solution did not mean any prejudging of which bidder was to take over the company. As concerns the range of bidders, the Commission declared from the very start that it would be neutral as it would otherwise be unable to fulfil its role as guardian of the Treaties.
It was also agreed that all national protective measures would have to be fully in compliance with the provisions of the EC Treaty on State aid and the internal market. Furthermore, State aid must not be made contingent upon political conditions such as the site of investment. The EU Treaty leaves no room for economic nationalism. Public money may only be used on an exceptional basis and only where future-oriented economic structures with future-safeguarded jobs result. All decisions must follow economic logic alone but, as I said earlier, when it comes to issues of State aid, Commissioner Kroes will go into detail later on.
The fact that GM will retain 35% of the shares is a clear indication that it is counting on the economic comeback of its former European subsidiary. I also welcome the fact that 10% of the shares will remain in the hands of the employees. The Commission has been talking to all those involved, both at the working level and the political level, since January 2009. All the Member States – and today the Flemish Minister-President, too – welcome and support the Commission’s position on the future of General Motors Europe. The Commission has all the tools to ensure that all the agreements are observed. I will stress one more time that we will not allow taxpayers’ money to be used according to short-term political considerations rather than the long-term interests of sites and jobs. In times of crisis, it is natural that many people would say that charity begins at home. As the Commissioner responsible for social affairs, I do hope, however, that Magna, along with GM and New Opel, will find a European solution.
The debate about the future of General Motors Europe must not prevent us from seeing that the situation facing the European car market overall is a drastic one. Even before the crisis, there were overcapacities. This situation has been exacerbated by the crisis. In the last quarter of 2008, the number of registrations fell by nearly 20%, and we are expecting a fall of 11% for 2009 as a whole. The scrapping premium, which 12 Member States have adopted, has ended the freefall, but only on the passenger car market.
We pointed out the extremely difficult situation in the entire goods vehicle sector back in January 2009. The sales figures are catastrophic. There are no figures in sight showing a recovery. There are serious consequences for the entire supply industry. The primary responsibility for managing the crisis obviously lies with the automotive industry itself. In order to protect the workers affected, the EIB, Member States and the Commission have provided financial means so as to soften the social consequences in the sector."@en1
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