EU Not Happy With GM Saab Spyker Deal

Swedish guarantee for Saab Spyker loan to be tested by EU

EDITOR'S NOTE: I guess this is a good example of why the EU may not be such a great idea after all, especially when you have communists trying to make capitalist decisions, or capitalists trying to make socialist decisions. Perhaps it is best if the EU rules that the deal can't go through and all the workers just lose their jobs.

By Henny Hemmes
Senior European Editor
Amsterdam Bureau
The Auto Channel

The take over of Saab by Spyker is not a run race yet. A member of the European Union raised concern about the Swedish government to guarantee the loan of 400 million euro provided by the European Investment Bank EIB. Since the Swedish government is guaranteeing the loan, this should be regarded as state aid, said the member.The Union’s Commission for Competition could rule this is violating the EU state aid and market rules.

Last year, Mrs. Neelie Kroes, the EU competition commissioner ruled in the case of the German aid for the Magna-Opel deal, such aid would have to be broadly available, suggesting that Germany could resulolve the concerns if it was making such assurance. That should also be a possibility for the Swedish government, you’s guess.

The EU member in question is a Durch Christian Democrat. She sayd that when one small car manufacturer that has never been able to be profitabl,e takes over another car manufacturer that also never was in the black, such a deal needs to looked at profoundly by the competition commission.

Such investigation will take many months, making it practically impossible to do business. This is one of the many reasons the Dutch people voted No for the EU Constitutional Treaty in 2005. However they were taken for the ride by their prime minister afterwards, who did not want to have another referendum because the EU’s Reform Treaty did not include constitutional elements. (Story: http://euobserver.com/9/24763)

Victor Muller, CEO of Spyker, said earlier this week that he expects approval from the EU within weeks, and he still does. He commented to Dutch media: “It speaks for itself, that before there was a deal, the guarantee has been aligned with the EU.