Brussels quizzes Madrid on car rescue plan

SpainBrussels - The European Union's executive sent a formal letter to Spain on Tuesday asking for more information on a 4.1-billion-euro (5.4-billion-dollar) rescue plan for the car industry, officials in Brussels confirmed.

The move is a "precautionary measure, because we have not received full details" of the rescue package which the Spanish government finalized on Friday, Jonathan Todd, spokesman for EU Competition Commissioner Neelie Kroes, told journalists in Brussels.

The plan is aimed at supporting Spain's car industry with a package of measures designed to keep factories open, stimulate the production of low-emissions cars and boost domestic demand.

But the European Commission, which is charged with overseeing the EU's strict rules on fair competition, is concerned that measures such as the Spanish plan, and a similar plan under way in France, could give local producers an unfair advantage.

The Brussels-based body has "no problem" with state support for the car industry as long as it does not break the rules, Todd stressed.

The commission wrote to the French government on Wednesday asking for more information on the French proposal. Paris has not yet replied, but the deadline expires at midnight (2300 GMT), Todd said. (dpa)

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