For the EU summit agenda

One of the original motivations for tomorrow’s EU summit was the perception that Nicolas Sarkozy’s aid plan for French carmakers was in effect encouraging them to preserve production in France at the expense of Slovakia and other central European countries.  In that light, how should one interpret the following apparently likely sequence of events: Government of Germany takes equity stake in Opel; Opel sells one of its German factories to Daimler, and Daimler aborts a project to build a new factory in Hungary since it will now have the extra German capacity?

1 thought on “For the EU summit agenda

  1. The yahoo article doesn’t point to any government intervention on part of the possible Daimler-Opel deal. As such it looks more like a business decision (i.e. maybe getting a finished factory on the cheap) than government nudging and accusations of protectionism won’t stick here (at least until we know more background details).

    As for the German government buying stakes in Opel, I have my doubts about the wisdom of such a step, though so far nothing has happened apart from discussions and electioneering. And it has yet to be seen whether all these discussions about a viable rescue plan from the Opel mgmt are really the pretext to the government taking a stake in Opel or if their purpose is to make a “Nein” politically palatable (i.e. “we wanted to help, but the plan wasn’t viable, so don’t blame us at the polls”)

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