UPDATE 2-German minister takes tough stance on Opel aid

Mon Nov 16, 2009 8:29pm GMT
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* Previous German aid commitments to Opel "moot" - EconMin

* No guarantees that Opel aid request will get approval

* Contradictory signals from German coalition

* Belgium's Flanders says aid still on offer (Updates after GM Europe chief meets Flemish premier)

By Christoph Steitz

FRANKFURT, Nov 16 (Reuters) - Previous German pledges to provide state aid to carmaker Opel no longer apply now that General Motors [GM.UL] has said it can restructure its European arm alone, German Economy Minister Rainer Bruederle said.

"GM Chairman (Ed) Whitacre has said that his company can handle Opel, so this means that agreements and pledges that were based on other concepts are moot," Bruederle told reporters on the sidelines of a financial industry conference on Monday.

"Opel has the same right as any other German company to apply for state aid. We have a duty to examine this thoroughly. The outcome is open and there is no entitlement to have it approved," he added.

Senior members of Chancellor Angela Merkel's cabinet have sent conflicting signals over whether the government should provide aid to Opel. Bruederle, a member of the pro-business Free Democrats (FDP), has taken the hardest line.  Continued...

 
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