EU to study Renault subsidies

The European Commission will look into Nicolas Sarkozy’s subsidies for Renault car production in France to ensure they do not amount to a protectionist distortion of the single market, Britain's Trade Commissioner Catherine Ashton confirmed today.

But Ashton said it appeared Mr Sarkozy was taking “the right approach” by insisting support for French workers would not cost the jobs of Renault employees elsewhere in the European Union.