Main focus of Tuesday, November 18, 2008

Aid for the automobile industry?

The financial and economic crises have hit the ailing automobile industry particularly hard. Carmakers in both the US and Europe are now asking governments for assistance. Europe's press discusses the pros and cons of financial aid for the car industry.

El Mundo - Spain

The Spanish newspaper El Mundo comments: "Like their American counterparts, European manufacturers are now demanding state help to the tune of 40 billion dollars - part of which will be incurred as losses - to cushion the impact of their heavy drop in revenues. Some oppose this financing on the grounds that it would mean a regression to protectionism and a breach of the rules of the free market. Those are respectable arguments. But no government - least of all Spain's - can afford the luxury of not taking action and risking the loss of a key economic sector." (18/11/2008)

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More from the press review on the subject » Economic Policy, » Spain, » Europe

Süddeutsche Zeitung - Germany

The Süddeutsche Zeitung opposes state help for the automotive industry. "Hundreds of large companies have gone under, often with dire consequences for their workforce, and yet others have always taken their place. Why should a couple of companies now be protected? And why these companies, why now? Why should the state prolong their business life? And how attractive is a rescue whose only effect can be to perpetuate these companies' agony for years in the belief that the automotive industry is another coalmining industry? The plans to rescue car manufacturers now being negotiated amount to a welfare-state solution to the crisis. Their aim is that the money now being spent will at one point be recouped. But this will not and cannot happen. ... Entire economic sectors will have to invent themselves anew, and politicians should not get in their way." (18/11/2008)

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More from the press review on the subject » Economic Policy, » Germany, » Global
All available articles from » Thomas Steinfeld

Blog Carl Bildt - Sweden

Ahead of his visit to the US, Sweden's Foreign Minister Carl Bildt takes a pessimistic view of the plans to bail out the US auto industry with state assistance in his blog. He points out that president-elect Barack Obama is being forced into action: "This will be a landmark decision that maps out the direction of his policies. Not least the trade unions that supported him are insisting on billions in aid for the car industry. But if he is generous with aid that would show that he's susceptible to such demands and that they will influence his future economic policies. ... Structural changes are also needed. No doubt there is a surge against this in the debate in Washington and in Chicago, too, where the new policy is being formulated. They used to say that what was good for General Motors was good for the US. But we're living in a different world now. And it could very well be that what is good for General Motors is not good for the US. And certainly not for the rest of the world either." (17/11/2008)

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More from the press review on the subject » Security Policy / Crises / War, » Economic Policy, » U.S.
All available articles from » Carl Bildt

La Repubblica - Italy

The Italian daily La Repubblica declares the automobile industry dead: "The age of the automobile as a means of private transport and as a product are coming to an end. It uses up too much of everything, both in production and consumption: too much energy, raw materials, water, space and time. Yet it has gained such a high status in our society that the transition to alternative forms of transport - and why not, to less mobility - will be a long and difficult process." (18/11/2008)

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More from the press review on the subject » Corporations, » Consumers, » Global
All available articles from » Luciano Gallino

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