The European Commission, increasingly concerned about protectionist tendencies in member states, has asked France, Spain and, on Friday, Italy to justify their auto sector aid packages.
The EU's executive arm has some concerns over Italy's plan to aid its ailing auto sector and was writing to Rome Friday to seek more details, a spokesman said Friday. The commission will write to the Italian authorities today asking them to provide precise details on the measures within five working days, he added. One particular area of concern is that the government help seems to be available only to businesses that sign a protocol with the government, he said. Such aid could be discriminatory against companies who do not want to sign and in that case it would be state aid because it would be selective and threaten the free circulation of goods, he added. more...
Ph.D. programme on global financial markets and international financial stability at Jena University and Halle University, Germany
Sonntag, 22. Februar 2009
Protectionism within Europe
... is rearing its ugly head and the EU Commission is getting increasingly concerned about it, as financial24.org reports:
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It's not only Protectionism we have to worry about. Willem Buiter seems to make a case for capital controls.
And similarly: Ken Rogoff, as reported by the New York Times.
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