IDRC Pre-ICN Forum on Competition and Development State Subsidies and Automobile Industry in the Czech Republic

1
IDRC Pre-ICN Forumon Competition and Development
State Subsidies and Automobile Industryin the
Czech Republic

• Michal Petr
• Office for the Protection of Competition

2
Car Industry in the Czech Republic

• 10 GDP, 20 export
• 1 000 companies, 150 000 employees
• Škoda Auto (Volkswagen)
• Hyundai
• Toyota Peugeot Citroën Automobile (99 export)
• AVIA (Hinduja Group)
• TATRA

3
The Crisis

• 23 decrease (Škoda Auto x TPCA)
• 59 decrease in trucks
• Unemployment increase ( foreign workers)

4
Do something right now

• Scrapping schemes the Commission is favourable
  to measures to support demand for cars, like
  scrapping schemes that restore consumer
  confidence and give incentives for the
  elimination of old and most polluting cars
• Škoda Fabia 2nd best-selling car in Germany
• Does it work in a small economy?

5
The French Repatriation

• Nicolas Sarkozy
• French cars for French people to be produced in
  France, not in the Czech Republic
• 6,5 bil. EUR subsidy

6
ad Repatriation

• Czech Prime Minister
• as a Prime Minister it is a fundamental
  principle of the Single Market that the
  undertakings themselves should decide
• as the Presidency
• Europe without barriers
• same rules for everybody
• do not try to misuse the Crisis in order to
  restore protectionism
• added value of the Single Market together
  against the Crisis

7
A happy ending?

• I am satisfied with the guarantees set out by
  the French authorities on the absence of
  protectionist elements in the plan for aid to the
  automotive sector. () It was important for the
  Commission to remove all ambiguity in this case,
  as Europe must avoid a return to protectionism
  and its negative consequences for employment in
  Europe. I am particularly vigilant in this
  respect.
• But Renault back to France from Slovenia?

8
Firm on principle, flexible on procedure

• beware of new barriers
• stay even more vigilant
• resist temptation to support concentration
• decide quickly

9
Thank you for your attention

• michal.petr_at_compet.cz
• www.compet.cz