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German Chancellor Merkel talks tough on helping Opel

German Chancellor Merkel talks tough on helping Opel

German Chancellor Angela Merkel talked tough on the question of helping General Motors's Opel unit yesterday, saying she would only come to the aid of companies that have a sound future.
"We will support firms like Opel only if our help ensures a good future for these companies and doesn't just uselessly go up in smoke because a company has failed in the market," Merkel told the Bild daily in an interview.
She said Berlin would only assist struggling companies if it can be shown that the "advantages for people in Germany are greater than the damage.
"State help can only be a bridge out of the problems of the economic crisis, after which companies have to be successful in the market under their own steam," Merkel said.
GM Europe executives on March 2 presented Berlin with a restructuring proposal that includes 3.3 billion euros (US$4.2 billion) in public aid from Germany and other European countries where it has factories.
The bailout, which could come in the form of state-backed loan guarantees or even a partial nationalization, would see Opel stand on its own as a separate entity whatever happens to its ailing parent company.
Berlin is currently studying the proposal. The government said on March 6 that no decision would be taken for several weeks.
Merkel told Bild that the decision would depend on what happens to Opel's parent company, which said last month it needed another US$22.6 billion in U.S. and other government loans to survive.


Updated : 2021-05-07 02:57 GMT+08:00