EESC calls for urgent action in response to the crisis in the European automotive industry

 

During its plenary session on 13 May 2009, the European Economic and Social Committee (EESC) adopted a key opinion on responding to the crisis in the European automotive industry. It welcomed measures put forward by the Commission as part of the EU economic recovery plan but stressed the need for speed in establishing a coherent and coordinated framework to ward off any drift towards protectionism and to set common goals.

The Committee adopted a key opinion by rapporteur Gustav Z öhrer (Group II, Employees, Austria) welcoming the initiatives by the European Commission. While stressing the overall importance of these measures, the EESC underscores that the present crisis calls for swift action and that measures need to be implemented more quickly than planned, especially to save supply industry SMEs from collapse. The crisis is affecting the automotive sector more swiftly and severely than other branches of industry. As a key sector for the European economy it needs urgent action from both EU Institutions and Member States.  

The EESC draws attention to the importance of ensuring rapid access to sufficient targeted funding through banks, the European Investment Bank or state aid and guarantees from the Member States. " The urgent thing is to prevent unemployment, retain know-how in the industry and use slack periods for measures to boost workforce skills," Mr Z öhrer stresses. I ncentives to boost demand are also needed. In addition, the Committee calls on the Member States and the Commission to provide the overall macroeconomic environment to safeguard incomes and thus fuel domestic demand.

With this opinion, the EESC also underlines that care must be taken not to identify structural problems with overcapacit y alone, as there is a danger that the crisis will result in undercapacity and hence more imports when demand increases again. The Committee also requests that specific actions for the downstream markets be included, as CARS 21 did for the manufacturing sector. The EESC therefore calls on the social partners concerned and the Commission to launch a real, effective social dialogue and to strengthen co-operation with trading partners in the United States and Asia, in particular with regard to the conclusion of a free trade agreement with South Korea.