Labour MEPs call for a united response to aid ailing car industry - 2009-03-25

Labour's Euro MPs have today welcomed a European Parliament resolution calling for a united European response to help the troubled car industry.

Since the end of last year car sales have plummeted dramatically across the EU as the economic downturn has taken effect. This is endangering millions of jobs across the continent.

Glenis Willmott MEP, Labour's Leader in Europe, said: "It is vital we act now to protect our car manufacturing industry and those connected to the industry as we cannot afford to let it go to the wall."

"Council and Commission need to accelerate, simplify and increase financial support to the industry and they can do this by allowing state guarantees for low interest loans and at the same time by creating EU guidelines for market incentives such as the scrapping schemes we have seen used to some success in Germany".

Some Member States have already acted to try and prop up their struggling domestic markets by taking a series of individual measures. However, due to a lack of a coordinated response the impact as a whole on the market has been distorted and arguments over protectionist policies have restricted progress.

This came to the fore last week after French carmaker Renault announced it would be shifting production back to France from its Slovenian plant after the French government had guaranteed them state aid.

The Parliament has also called for the European Commission to give clear guidance on the best use of European funds available to help support jobs, Research and Development programmes and vital re-training schemes for vulnerable workers.

"As well as initiatives from Member States there are also crucial funds available at European level such as through the Cohesion Funds, Structural Funds, Social Funds and Globalisation Adjustment Funds. It should be the Commission's job to advise and speed up access to these funds to help the industry at this time."

"This could not only help secure high skilled jobs within the sector but could help support vital Research and Development that will be needed to ensure a future transition to a greener and more sustainable automobile industry" added Glenis Willmott MEP.

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