Europe’s carmakers have welcomed the economic recovery plan presented today by the European Commission. They said it is a welcome first step towards addressing the consequences of the financial crisis, aimed at preventing a prolonged slump in the EU economy and supporting – amongst others – the automotive industry.
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The EUR200bn plan – equivalent to 1.5% of EU GDP – is designed to stimulate spending and boost consumer confidence by injecting more purchasing power into region.
Commission president Jose Manuel Barroso said the plan was ‘timely, temporary and targeted’. The EC expects member states to contribute EUR170bn while the European Union will stump up EUR30bn.
The European Commission president said the bigger part of the package would be implemented in 2009, while some measures would continue into 2010.
The proposed plan will need to be approved at the next EU summit in December.
Acea said that details of the plan have to quickly become clear particularly with regard to its scope and the amount of funding available.
“EU governments and institutions need to act and urgency is key. The framework proposed this morning needs to be translated swiftly into concrete and effective measures to help an industry in great danger,” said Christian Streiff, President of the automobile industry’s trade association ACEA and CEO of PSA Peugeot Citroën.
“Our industry will work with the European Investment Bank and national governments to find pragmatic solutions, using all possible resources available at community and national level”, added Ivan Hodac, Secretary General of ACEA.
“The proposal of today represents a broad range of opportunities that now need to come together in a coherent and coordinated manner. The increased credit facility from the European Investment Bank, to be adopted by the Ecofin council of 2 December, will be a further important step.”
“We need to study today’s proposals in more detail and will actively help shaping the urgent proposals for financial support, broad market incentives to accelerate fleet renewal, reduce the regulatory burden on the industry, and ensure free trade agreements that ensure all parties a mutual benefit and fair market access”, said Hodac.
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