Est. 2min 30-10-2008 (updated: 28-05-2012 ) traffic_jam.jpg Euractiv is part of the Trust Project >>> Languages: Français | DeutschPrint Email Facebook X LinkedIn WhatsApp Telegram A planned €40 billion soft-loan package designed to help European car manufacturers meet ambitious environmental targets was welcomed by the sector but heavily criticised by environmentalists. Speaking at a CARS21 stakeholder meeting on 29 October, Verheugen said that the Commission was “positive” about giving a €40 billion soft-loan package to the industry. He could not say when such a package would be available but the idea is to channel the money through the European Investment Bank (EIB) in the form of low interest-rate loans to support the sector via R&D into improved energy efficiency and lower fuel consumption for new vehicles. The EU executive could also allow member states to provide state aid for the industry on green innovation grounds. The announcements come after the 27 EU leaders gave their support to a France-inspired plan to support Europe’s ailing automobile industry earlier this month, instructing the Commission to come up with proposals to support all European industries before the year’s end (EURACTIV 17/10/08) In the current context of a general economic downturn and declining sales of new cars throughout the EU and around in the world, the CARS21 conference “was dominated by concern about the future of jobs in this sector,” said Commissioner Günter Verheugen, presenting the conference conclusions. Job losses do not only concern the car manufacturing industry but also contractors, suppliers and those who provide maintenance and repair work, he added. The stakeholders agreed that the way forward for ensuring the long-term sustainability and competitiveness of the European car industry was to position it as global leader in clean, safe and affordable vehicles. However, the car industry said that this would only be possible if more industry-friendly regulations were put in place and if governments provided direct financial support to the sector. Read more with Euractiv Global airlines blast EU ETS decision The International Air Transport Association (IATA) has condemned a decision by EU ministers to ignore the current economic downturn and approve a compromise deal on including aviation activities in the bloc's emission trading scheme (EU ETS). Positions"We are open to the possibility of providing support for the development of low-emission cars; high-tech cars that could help the European motor industry maintain its global competitiveness" while respecting the EU state aid rules, said European Commission President José Manuel Barroso. The president of the board of directors of the European Automobile Manufacturers' Association (ACEA), Christian Streiff, said the industry needed "coherent, predictable and cost-effective regulations that can maintain affordable vehicles on the market". He argued that the "car industry's competitive strength is being pushed to its limit" due to, first, high fuel prices and then the financial and economic crises. In addition, he said: "European carmakers are faced with the need to sustain a very high level of investment to support the transition of the market to low-emission vehicles and to address many new regulatory requirements. Large sums are being put to product development." This is why ACEA members are calling for government action and financial support to support the market, give incentives to renew the fleet all over Europe, help sustain investment in R&D and ensure the transition to low-emission cars. "We are waiting for a low-interest loan package of €40 billion to help secure sustainable market for newly developed fuel efficient technologies which are currently too expensive to enter the market," he concluded. Streiff also noted that planned CO2 penalties were "just crazy" for an industry that was already in difficulty. "If Europe is to maintain its global competitiveness, dramatic yet affordable improvements in safety and environmental performance are needed," said Wil Botman, director general of the Fédération Internationale de l'Automobile's (FIA) European Bureau, which represents automobile consumers. FIA thinks that progress could be achieved by focusing on aspects related to driver behaviour and road infrastructure safety management, through improved road infrastructure, increased support for eco-driving techniques and harmonised consumer information on car emissions. Greenpeace EU accused the industry of "crying wolf and presenting inflated costs for reducing their CO2 emissions" and heavily criticised the car industry's demands for financial support. The industry is "asking taxpayers to foot the bill for its irresponsibility and inaction, while continuing to churn out inefficient cars," it stated. "As long as carmakers duck their responsibility to reduce CO2 emissions, any loan given to them would mean subsidising climate change. The industry should stop blocking proposals for serious emissions reductions before a handout is even considered," said Greenpeace EU transport policy campaigner Franziska Achterberg. The European Parliament's Greens/EFA group referred to the conference conclusions as Verheugen having given the "green light and greenwash to subsidies in disguise" and accused him of "lobbying together with automakers to water down CO2 reduction targets for new cars". "Helping the car industry out of a crisis is unacceptable if it comes in the form of disguised subsidies to companies that are hell-bent on continuing with business as usual," said vice-president of the Greens/EFA Group, Rebecca Harms. BackgroundIn 2005, a high-level group on 'CARS21', which brings together commissioners, ministers, MEPs, industry representatives and trade unions, was set up to improve the regulatory framework of the car industry and prepare it for the competitive challenges of the next decade. The group soon came under fire from consumer organisations and other industries connected to the automotive sector for being tailor-made to fit EU manufacturers' interests and representing an exercise in trade protectionism (EURACTIV 01/03/05 and 05/10/05). Based on the group's report, the Commission presented, in February 2007, a new "strategy for the long-term viability of the European car industry," which left out social challenges related to globalisation. Instead, it promised to convene a "restructuring forum" on the automotive industry to help companies anticipate competitive challenges at an early stage and respond to them in a socially responsible way. A stakeholder consultation on the issue was organised in summer 2008. Timeline A stakeholder task force on cleaner cars will be set up to explore technical, regulatory and economic issues and suggest ways forward for such vehicles. A new meeting of CARS21 stakeholders will take place next year to talk about the findings of that group. Further ReadingEuropean Union Commission:CARS 21 Mid-Term Review Conference Conclusions and Report(29 October 2008) Commission:European automotive policy: For job security and green and affordable cars(29 October 2008) [FR] [FR] [DE] Commission:CARS 21 Commission:European partnership for the anticipation of change in the automotive sector(17-18 October 2007) Commission communication:A Competitive Automotive Regulatory Framework for the 21st Century - Commission's position on the CARS 21 High Level Group Final Report - A contribution to the EU's Growth and Jobs Strategy(7 February 2008) [FR] [FR] [DE] Political Groups Greens/EFA group in the European Parliament press release:Car summit: Verheugen gives green light and greenwash to subsidies in disguise(29 October 2008) Business & Industry European Automobile Manufacturers' Association (ACEA) press release:Supportive framework is paramount to the future of vehicle manufacturing in Europe(29 October 2008) Fédération Internationale de l'Automobile (FIA) European Bureau of the Eurocouncil press release:CARS 21: More needs to be done to safeguard mobility(29 October 2008) Fédération Internationale de l'Automobile (FIA) European Bureau of the Eurocouncil press release:FIA Calls for EU to Build on CARS 21 Success(29 October 2008) NGOs and Think-Tanks Transport & Environment (T&E) press release:T&E reaction to the European Commission / car industry joint statements and press conference today in Brussels(29 October 2008) Greenpeace European Unit press release:Car industry asks taxpayers to foot the bill for its irresponsibility(29 October 2008)
