EU to hold emergency talks on GM Europe sale

Europe’s industry ministers are to hold emergency talks tomorrow amid growing concern about Germany’s handling of the attempt to sell off General Motors Europe.

A Commission spokesman said: “The aim of the meeting is to exchange information and ensure a level playing field for co-ordination.”

The Commission called tomorrow’s talks hoping to clarify German thinking following the failure of late-night talks in Berlin to secure a buyer – and GM Europe’s future.

The sale of GM’s European arm is part of the reorganisation of the US carmaker, which is battling to avoid bankruptcy.

Pressure to agree on a partner is building ahead of a June 1 restructuring deadline for GM set by the US government, which could lead to a Chapter 11 bankruptcy filing by the Detroit-based carmaker.

The Commission spokesman said: “I would point out that this is not the start of our involvement. It is part of an ongoing process.”

Only a fortnight ago the Commission met GM bosses, car industry officials and ministers from 12 EU countries.

Commission vice-president Gunter Verheugen spoke then about the need for any restructuring of GM Europe to “fully respect EU rules”.

The meeting agreed that “no national measures (to support GM Europe) should be taken without prior information and co-ordination with the Commission and other involved countries”.

Any state aid measures granted by German chancellor Angela Merkel to a GM Europe buyer would have to be approved.

Germany’s next step after the failure of the Berlin talks may now hinge on the Brussels meeting, with bids still open for the Vauxhall and Opel businesses.

As the meeting ended earlier today, Germany’s economy minister Karl-Theodor zu Guttenberg said Germany did not yet have the security it needed to provide billions of dollars' worth of loan guarantees for Opel, a move which gives the country most influence in deciding the division’s new owner.