Sergej Kozlík (NI). – (SK) The dramatic fall in global demand for cars has also affected Europe. In the final quarter of 2008, European car sales showed an annual decline of over 19% and they are still falling. Many of the key Member States of the European Union have decided to support the vehicle-manufacturing sector. However, doubts are appearing concerning the approaches that have been selected and drawn up, as they smell of protectionism. I therefore support the standpoint of the European Commission which is warning against protectionist measures in support of domestic producers. The call made by the Commission to resolve structural problems as a matter of priority is to the point, especially with regard to high overproduction and investments in innovative technologies.

All public sector support must be transparent and it must respect EU rules on competition and state aid. We must prevent rivalry over subsidies between the various players on the European market. The situation is made more difficult by the fact that these rules do not take account of global competition, particularly from the US. It is expected that US subsidies for resolving the problems of car producers will be extended to parts suppliers as well. If the situation becomes acute, Europe may face not only the issue of how to sort out production and sales problems in Europe, but also the problem of imported cars that have been produced with excessive state aid. In such a situation Europe could also threaten to enforce measures within a World Trade Organization framework.

Many European countries have introduced scrappage schemes and efforts in this direction have now begun in the UK. However, scrappage schemes can resolve the crisis only in the short-term. They quickly deform markets, drain money from the public purse and cause the postponement of necessary solutions that focus on investment in innovative technologies.