A cross-party motion for a resolution adopted yesterday (25 March) maps out the effects of the economic crisis on the European car industry.
The sector employs 12 million European workers directly, but also has a "multiplier effect for other sectors and industries," particularly for SMEs, which form part of the manufacturing chain for the finished product, MEPs state.
The car industry ranks among those hit hardest by the economic downturn. Registrations for new cars fell by 30.9% in January, according to manufacturers, and sales have declined for ten months in a row.
The Parliament is thus calling on the European Commission to ensure "the best use of European funds available in support of jobs" to train and retrain workers. It states that governments should provide the industry with faster and simpler access to financial aid by guaranteeing low-interest loans.
Moreover, the resolution urges member states to increase the lending capacity of the European Investment Bank (EIB), in particular to provide funding for SMEs.
Indeed, investment in the automotive sector does not just benefit big companies, but trickles down to smaller suppliers too, Françoise Le Bail, deputy director-general at the EU executive's enterprise department told EurActiv in an interview (EurActiv 24/03/09). She said the EIB had not been quick enough to release funding in the past, but banks were now in a better position to do so.
MEPs were also keen to promote the role of green technologies in creating new jobs, driven particularly by the EU's new climate legislation agreed in December. They requested the Commission to draw up guidelines for scrapping schemes and other incentives that encourage coordinated fleet renewal.
'No' to protectionism
The resolution calls on the EU to deepen dialogue with third countries to prepare a level-playing field for European manufacturers. Refraining from protectionist measures is crucial for the recovery of the global market, and therefore the Commission should keep a close eye on developments in the US and Asia, MEPs said.
In Europe, too, the Parliament observes some risk in measures taken at national level, which they fear could be detrimental to long-term competitiveness by distorting competition in the single market. They consequently urge member states to coordinate all future measures to make sure they are efficient.
Fears of protectionism have arisen throughout Europe as thousands of workers are being laid off (EurActiv 04/02/09). Most notably, French President Sarkozy's suggestions that French carmakers might have to buy specific amounts of parts from domestic suppliers to be eligible for government loans raised alarm in Europe in February. Under pressure, the French have since backtracked on their plan (EurActiv 01/03/09).
