German body opposed to aid for GM’s Opel -paper

BERLIN, June 1 (BestGrowthStock) – An independent body advising
Berlin on state aid to ailing firms opposed General Motors
[GM.UL] unit Opel’s request for state loan guarantees worth more
than one billion euros ($1.23 billion), a newspaper said on
Tuesday.

The Financial Times Deutschland said, without naming its
sources, that the advisory body found no business reasons to
extend any loan guarantees to Opel even after the unit had
signed a restructuring deal with its workforce.

A spokeswoman for the economics ministry declined to comment
on the report. She said she expected the advisory body to
announce its decision on Tuesday.

The advisory body is composed of business experts, such as
Michael Rogowski, former head of the German Industry Association
and ex-trade union leader Hubertus Schmoldt.

Its recommendation is not binding and serves as input for a
government committee that goes through a formal procedure to
study any company’s request for state aid.

The committee includes state secretaries from government
ministries and federal states that are home to Opel factories. A
representative from the office of Chancellor Angela Merkel is
also a member.

Economics minister Rainer Bruederle, who has been sceptical
about Opel’s request for state aid, will make the final
decision.

A restructuring deal at Opel was signed into effect on
Monday that aims to save 265 million euros ($325 million) in
annual wage costs through 2014. European union and workforce
representatives from countries hosting Opel’s major factories
also signed the deal with Opel Chief Executive Nick Reilly.
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($1=.8163 EURO)

Stock Today
(Reporting by Gernot Heller; Writing by Marilyn Gerlach in
Frankfurt; Editing by Louise Heavens)

German body opposed to aid for GM’s Opel -paper