The open Market Nein danke - or how Germany ran roughshod over the EU.

[Duth Ealla]

Having approved Lisbon (and then brought it back into the courts so as to be able to at least threaten to drop it if needed) Germany seems to prove that the free market is only sacred to some.

A fairly fundamental crack in the EU ethos that will concern those for and against Lisbon. As an issue its bigger than the lisbon treaty. This is actually a row back of the EU project and not the standing still that we had until now.

In his FT column, [COLOR=#0000ff]Wolfgang Munchau[/COLOR] notes that the Opel rescue is likely to lead to severe tensions within the EU, as the price of preserving Germany’s plants will be the closure of plants in other EU countries, including one plant in Belgium. The reason is the way the deal was negotiated, as the German government insisted that the winning bidder, Magna, preserves all four German Opel plants (which Magna had not intended to do in its original bid). The Opel rescue is the next nail in the coffin of Europe’s single market, which has been unraveling in banking and finance, public procurement, and now in cars.

Lagarde says stability pact should be softened

[Ramon21]

Great job germany!
Show those anti-eu fools, if they leave the eu they can forget any easy deal to keep trading.

[Duth Ealla]

Great job germany!
Show those anti-eu fools, if they leave the eu they can forget any easy deal to keep trading.

ramon21,

This is not a good move for the EU. I support the EU and really this is thin end of the wedge stuff. State protectionism is going to come back in a big way. As far as i recall Antwerpen is still in the EU but suddenly there factory is no longer viable. Are they anti-EU in Antwerpen?

As as country that makes its money from importing and processing materials for distribution i.e using your comparative advantage. The Netherlands is particularly exposed to other countries subsidising their own industries.

This affects your flemish neighbours straight off the bat and Germany needs a slap on the wrist for it.

Thats not pro or anti Lisbon. This is a bit more fundamental than that.

[ibis]

ramon21,

This is not a good move for the EU. I support the EU and really this is thin end of the wedge stuff. State protectionism is going to come back in a big way. As far as i recall Antwerpen is still in the EU but suddenly there factory is no longer viable. Are they anti-EU in Antwerpen?

As as country that makes its money from importing and processing materials for distribution i.e using your comparative advantage. The Netherlands is particularly exposed to other countries subsidising their own industries.

This affects your flemish neighbours straight off the bat and Germany needs a slap on the wrist for it.

Thats not pro or anti Lisbon. This is a bit more fundamental than that.

It is, indeed, and we've undeniably seen a rise in state protectionism in this crisis - although that's not exactly surprising. I wonder if the deal will survive the near-inevitable Commission investigation, though? The French Renault deal didn't.

[Ramon21]

It is, indeed, and we've undeniably seen a rise in state protectionism in this crisis - although that's not exactly surprising. I wonder if the deal will survive the near-inevitable Commission investigation, though? The French Renault deal didn't.

This crisis is soon to be over: and that will prove a couple of things!

1: the euro can't survive a recession: will be proven wrong.
2: the eu can't survive a recession: will be proven wrong.


So that will be some good things for the pro eu side.

[Duth Ealla]

It is, indeed, and we've undeniably seen a rise in state protectionism in this crisis - although that's not exactly surprising. I wonder if the deal will survive the near-inevitable Commission investigation, though? The French Renault deal didn't.

There is a tricky timeline though. merkel pretty much fessed up and said that she has no choice politically. She has an election in september to win and i think politically she has to either deliver on it or else have the commission hold off on judgement until after the election.

Its probably workable as the take over will take a while yet. How will the company respond if the terms are changed. probably wont mind seeing as how their original offer was not geographical in nature.

[Pauli]

Merkel has a September election. Opel and suppliers have 50,000+ jobs in play. Article 87 looks very small in comparison to those realities in German politics.

The single market can go and hang, as far as Angie is concerned right now.

[ibis]

There is a tricky timeline though. merkel pretty much fessed up and said that she has no choice politically. She has an election in september to win and i think politically she has to either deliver on it or else have the commission hold off on judgement until after the election.

Its probably workable as the take over will take a while yet. How will the company respond if the terms are changed. probably wont mind seeing as how their original offer was not geographical in nature.

As far as I know, the question of when a Commission investigation would happen would be determined by when someone complains, rather than the German electoral cycle. Presumably, any attempt by the German Commissioner to hold up such an investigation - assuming they made such an attempt - would be balanced by at least the Belgian Commissioner's keenness to push it forward.

Looking at your OP, I think one would have to say that this is a test of the EU, rather than a failure of it - as yet!

[Duth Ealla]

As far as I know, the question of when a Commission investigation would happen would be determined by when someone complains, rather than the German electoral cycle. Presumably, any attempt by the German Commissioner to hold up such an investigation - assuming they made such an attempt - would be balanced by at least the Belgian Commissioner's keenness to push it forward.

Looking at your OP, I think one would have to say that this is a test of the EU, rather than a failure of it - as yet!

not so sure re the electoral cycle. The complaint may be intiated prior to the election but due to the complexity etc etc but we will see .

Belgium has a right to be heard but I wonder will they be.

I agree a test at this stage rather than a failure.

An important test re the rights of a smaller nation against a larger one. Passing the test would be to the EU's credit.

[ibis]

not so sure re the electoral cycle. The complaint may be intiated prior to the election but due to the complexity etc etc but we will see .

Belgium has a right to be heard but I wonder will they be.

I agree a test at this stage rather than a failure.

An important test re the rights of a smaller nation against a larger one. Passing the test would be to the EU's credit.

A reminder, I suppose, of the value of the 27-member Commission, unwieldy as it might be.