Governments vie with each other to save Volvo

Carmaker Volvo Personvagnar, a Swedish subsidiary of Ford, wants a loan from the European Investment Bank (EIB) but has failed to obtain the necessary guarantees from the Swedish government. Now the Flemish regional government has signalled its willingness to step in and secure the loan. The daily Expressen comments: "Naturally Volvo, as well as other European carmakers, should be able to obtain EIB loans if the company can provide adequate security. But if governments start competing with each other the demands placed on debtors will sink. Therefore political opposition at an EU level is called for, as well as a strict pan-European system of rules to be applied when global companies apply to national governments for aid. The taxpayers have a true friend in the EU."

» full article (external link, Swedish)
More from the press review on the subject » Corporations, » Sweden, » Belgium

» To the complete press review of Thursday, May 28, 2009