Fiat Aid A No Go Without EU Approval

NAPLES, Italy, Oct 14, 2002 Reuters reported that EU Competition Commissioner Mario Monti said today he had told Italian Prime Minister Silvio Berlusconi that struggling carmaker Fiat could not receive state-aid without EU approval.

But Monti added that the Commission would give fast-track consideration, within EU guidelines, to any Fiat rescue initiative presented to the Commission by Italy.

Fiat, Italy's largest private sector employer, last week announced more than 8,000 layoffs as the automaker struggles to compete in tough market conditions. The company's 100-year-old auto division could be sold to the U.S.'s General Motors