French PM defends plans to provide state aid

French prime minister François Fillon has defended plans to provide €6bn in state aid to the ailing French car industry, The Parlament.com informed.

Speaking in Brussels on Thursday, Fillon insisted the move did not amount to protectionism.

"France does not engage in protectionism, said Fillon following talks with commission president José Manuel Barroso.

Some countries, including the Czech Republic, which currently holds the EU rotating presidency, have attacked the French plan.

But Fillon said the move was necessary at a time when the automotive industry had suffered a 40 per cent fall in sales.

We are facing a very serious economic crisis. It is a deep and long-lasting crisis and the likelihood of a rapid recovery is receding," he told reporters.

The fears expressed by some about French plans to support the car industry are not well founded.He said that providing the loan was the only way to help the industry stay afloat.

How else would the industry be able to continue operating plants across Europe? he added.

We know how dangerous protectionist measures are for Europe and the rest of the world but these measures are not protectionist and there is no evidence of that. It was about protecting jobs.

The only condition was that the industry does not close down any assembly plants in France for the duration of the loan.Barroso said that the EU and France shared the same anti-protectionist stance.

He criticised plans by the new Obama administration to provide a huge financial injection for the American car industry, describing the plan as strange in some ways and saying it contained elements of discrimination.

Barroso also said he hoped the emergency summit in Brussels on 1 March would provide an opportunity for the EU to show greater unity and determination in tackling the recession.

Source: Transportweekly