Local view for "http://purl.org/linkedpolitics/eu/plenary/2009-02-04-Speech-3-257"
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"en.20090204.16.3-257"2
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"Mr President, I think that we are now moving into a really important issue. Under the current circumstances, this is something that must be discussed. Once again, we are grateful for this timely opportunity to discuss the effect of the current economic and financial crisis on the automobile industry.
More generally, the Council’s Presidency fully supports the Commission on the need to advance rapidly with the implementation of the European Economic Recovery Plan. The Commission has also been invited to explore, together with the European Investment Bank, how the utilisation of the loans envisaged for this sector can be further improved in terms of rapid availability, project financing and frontloading of the loans, without discriminating between manufacturers and Member States.
With regard to the global environment, we clearly need to engage in an early dialogue with the new US Administration as well as with our other global partners.
The Czech Presidency is determined to push forward with this overall policy of support for the industry, whilst respecting the principles and parameters to which I have referred. There is already a wide range of Community instruments which can play their part in providing support, not least in the area of new technology, for example in the development of clean cars. The full potential of innovative and environmentally sustainable propulsion technologies – fuel cells, hybrid, electrical, solar power – needs to be fully explored and put into operation.
On the other hand, there are also more ready-made and rapidly available instruments, such as, for example, the scrapping scheme for old cars. These instruments could combine the demand impulse for new cars with positive externalities in terms of transport security, reduction of emissions and others. There are now several Member States which already use this instrument. Therefore, the Presidency would like to ask the Commission immediately to put forward a proposal on how to encourage, in a coordinated manner, European car fleet renewal in the area of vehicle recovery and recycling, based on the analysis of the impact of these schemes in different Member States. Our aim is to have a proposal from the Commission some time ahead of the Spring European Council, in the context of the evaluation of the Recovery Plan, and to be able to discuss the issue during the Competitiveness Council in March. This will be headed by my colleague Martin Říman and Vice-President of the Commission, Günter Verheugen. Such schemes may provide an important demand stimulus for the automotive industry at Community level and should also ensure a level playing field within the internal market. I would like to underline the second half of the sentence, also in the current context.
To summarise: this is not just about supporting a key sector of our economy but is an approach from which we all stand to benefit in the long run.
As many of you are following very closely in your constituencies, the automobile industry is a key factor for the whole of the European economy. Over the years, we have promoted the competitiveness of the sector by establishing a single European automobile market and calling for fairer competition in trade with third countries. More recently, we have focused on reducing car emissions in order to combat air pollution and climate change. In all these areas this Parliament has given us its consistent support.
Thanks to these efforts, and in particular to the resilience and adaptability of the European automobile industry, European cars are today among the best, the most innovative and the most competitive, as well as the safest, most fuel-efficient and environmentally sustainable in the world. We should be proud of Europe’s record.
Nevertheless, despite its resilience, and as a result of factors largely outside its control, the European automotive sector has been particularly badly hit by the global economic crisis. These difficulties were already apparent in November last year, when the Council agreed on an approach based on promoting even more sustainable and fuel-efficient cars, realistic targets for manufacturers, and effective incentives for stimulating demand.
In the short time since then, the situation has become more serious. The industry has reported that 8% fewer cars were sold in the Union last year than in the previous year, to compare 2008 with 2007. The situation is likely to remain as bad – if it does not get worse – in 2009, hitting not just the automotive constructors, but also the whole automotive industry supply chain.
Ministers met my friend, Günter Verheugen, the Commissioner and the Vice-President of the Commission, on 16 January to discuss the specific problems facing the automobile industry. They expressed particular concern that the current difficulties would put at risk a significant number of jobs and underlined the importance they attached to the future of the industry.
Of course, the primary responsibility for responding to these challenges rests with the industry itself. The industry must be encouraged to take all necessary steps to address structural problems such as overcapacity and lack of investment in new technologies.
However, the importance of this industry for the European economy, and the fact that the sector is hit particularly hard by the current crisis, means that some sort of public support is required. This is reflected in the European Economic Recovery Plan agreed by the European Council last December, as well as in the Member States’ national programmes. Of course, we cannot allow short-term support for the industry to undermine its long-term competitiveness. This means focusing clearly on innovation.
Member States agree that public support for the automotive industry needs to be both targeted and coordinated. It also needs to respect some key principles, such as fair competition and open markets. It should not be about a race for subsidies, and it should not result in market distortions. In order to achieve this, Member States have confirmed their willingness to cooperate closely with the Commission on both supply-side and demand-side measures taken nationally. The Commission has, in turn, undertaken to provide a swift response in cases where it is required to react."@en1
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