State intervention no long-term solution

The daily Helsingin Sanomat shows understanding for the government-assisted bankruptcy protection for US carmaker General Motors and the rescue of GM's European daughter Opel, but nevertheless voices certain qualms: "Both the US and the European governments have intervened in the car industry crisis. Billions of dollars and euros are being thrown at the carmakers. This is understandbale, because the automotive industry is a major employer. Nevertheless it's no long-term solution for states to rack up quick debts. Rather, the solution for the car industry must originate on the market. The political concessions made to the car industry quickly engender demands from other sectors that they too be rescued by the state. Valuable political capital is also being burned with this money. The worries of the European Union are particularly earnest in this respect. The struggle over the fate of the automotive plants can seriously impair European solidarity and mutual political understanding at a time when these are urgently needed."

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