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EU bank: No big bailouts
10 March 2009
European car makers are unlikely to receive all the money they have requested from the EU's investment bank, with a predicted shortfall of around €33bn.
The European Investment Bank’s (EIB) president, Philippe Maystadt, warned manufacturers not to expect the full €40bn they want. Maystadt said that €7bn is a more realistic figure to expect from the bank.
The news will come as a huge blow to manufacturers such as Saab, who are relying upon EU loans to survive the current downturn.
Carlos Ghosn, Renault CEO and president of the European Automobile Manufacturers Association, last week asked the European Commission to increase its support of the car industry, both financially and strategically.
Ghosn also requested that the current €400m limit on funds available to any company in a single year be lifted; that now seems unlikely to happen given this latest rebuff by the EIB.
James McKiernan
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