Europe Under Pressure to Join a 40 billion Euro Bailout Plan
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- Europe Under Pressure to Join a 40 billion Euro Bailout Plan
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저작자 미상 (저작물 2267374 건)
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- 2008-11-19
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European automakers are asking for 40-billion euros or 50-billion US dollars in low-interest loans and incentives from the European Investment Bank.
This comes in response to decreasing sales globally and has been couched as an investment in the development of cleaner cars.
Acording to England's Financial Times details on the package could be unveiled as early as next week as a response to the United States 25-billion dollar loan to the "big three" US carmakers GM‚ Chrysler and Ford.
The European auto market is not as bad as the American market but the economic crisis is snowballing and threatening tens of thousands of jobs.
MeanwhileGeneral Motors' German Opel brand requested government support of 1-billion euro or 1.3 billion dollars. German's Chancellor Angela Merkel had a crisis meeting late Monday with excecutives from cash-strapped Opel and discussed which incentives and government credit guarantees should follow. The German government decided to deliberate through Christmas and come up with a detailed support package afterwards.
[Interview : Angela Merkel‚ German Chancellor] "If the government guarantees the financial support we must make it sure that the money is spent in Germany."
Experts say failed auto industries could jumble the European bloc's economy. French Finance Minister Christine Lagarde also called for support of the auto sector earlier this week and the United Kingdom's automakers are also asking their government to move to stimulate demand.
Auto sales in Europe declined last month for the sixth consecutive month falling nearly 15-percent damaged by the lingering global financial meltdown.
Kim Jiyoung‚ Arirang News.
Reporter : jennie84@arirangtv.com
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