The company has been accused of ingratitude, because it had accepted 88 million euros in German state subsidies in the past. German officials have demanded to know whether Nokia would benefit from its move to Romania, part of which could come from German payments.
The Commission has denied subsidising the new Nokia plant, and pointed out that both Germany and Romania would receive EU funding. "It is true that we support infrastructure in economically less-privileged regions, also in Germany," Barroso said. Germany is the largest contributor to EU funds.
Industry Commissioner Guenter Verheugen, who is German, told the Welt am Sonntag newspaper that "there is no point in paying subsidies to attract companies".
Nokia has defended its plans, saying the plant was not competitive and insisted that it will go ahead with the move. The company is refusing to enter discussions with German authorities about keeping the Bochum plant in operation, Nokia spokeswoman Arja Suominen told reporters on 17 January in Helsinki.
The Finnish company, however, has promised to hold talks with politicians and trade unions on a social package to ease the closure, the spokeswoman said. Nokia is the world's largest cellphone maker and the last major manufacturer to produce cellphone devices in Germany.
