Financial Times FT.com

EU backs aid for motor industry

By Nikki Tait in Brussels

Published: March 3 2009 01:56 | Last updated: March 3 2009 01:56

Plans put forward to aid the motor manufacturing sector by both the Spanish and Italian governments have escaped objections from Brussels under EU state aid rules.

The European Commission had asked authorities in both countries to provide some more details of how the schemes would work. The concern in the Spanish case was that assistance under the €4bn aid plan might depend manufacturers’ willingness to guarantee local jobs.

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