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EU Antitrust Boss Urges Opel Aid Decisions

Even if Magna received GM's blessing to takeover the German brand Opel, it appears the Canadian - Austrian partsmaker facing more challenges before completing the deal. Neelie Kroes, European Union antitrust chief, is asking European countries that are hosting Opel plants to make a decision on the funds to be approved for the company as soon as possible.

"We are asking the question, we are waiting for facts and figures to come to our final approach, the time frame the sooner the better. We are running out of time," Kroes told the European Parliament according to Reuters.

A thing worth mentioning is that Kroes also emphasized that countries should avoid "bribing" companies to preserve jobs. The United Kingdom, along with some other European countries, asked the EU Commission to investigate the Magna - Opel sale because it might favor Germany, who agreed to provide 4.5 billion euro in state funds.

"We also need to be clear that the financial sector was a special case. The substantial interventions in the financial sector should not be used as an excuse for massive state aid in other sectors," Kroes said. "This is not because we care more about bankers than workers in other sectors. It is because the financial system is the lifeblood of our whole economic system," she added.

The European Commission has already announced that it will meet with officials from other countries with Opel factories, as well as with representatives of the parties involved in the deal on October 7. As said, Germany has already agreed to provide 4.5 billion euros to support the Opel restructuring.

 
 
 
 
 

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