Identifier
Created
Classification
Origin
09BRUSSELS363
2009-03-13 15:03:00
UNCLASSIFIED
Embassy Brussels
Cable title:
BELGIUM: AUTOMOBILE SUBSIDY PROGRAMS
how-toVZCZCXRO9017 RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG DE RUEHBS #0363 0721503 ZNR UUUUU ZZH R 131503Z MAR 09 FM AMEMBASSY BRUSSELS TO RUCPDOC/DEPT OF COMMERCE WASHDC RUEHC/SECSTATE WASHDC 8718 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS BRUSSELS 000363
SIPDIS
STATE FOR EEB/TPP/MTAA BRIAN NAFZIGER
STATE PASS USTR ROY MALMROSE, LESLIE YANG
COMMERCE FOR 4212/ITA/MAC/EUR/OECA/WNE/JLEVINE
E.O. 12958: N/A
TAGS: ECON EFIN ETRD PREL WTO
SUBJECT: BELGIUM: AUTOMOBILE SUBSIDY PROGRAMS
REF: STATE 4753
UNCLAS BRUSSELS 000363
SIPDIS
STATE FOR EEB/TPP/MTAA BRIAN NAFZIGER
STATE PASS USTR ROY MALMROSE, LESLIE YANG
COMMERCE FOR 4212/ITA/MAC/EUR/OECA/WNE/JLEVINE
E.O. 12958: N/A
TAGS: ECON EFIN ETRD PREL WTO
SUBJECT: BELGIUM: AUTOMOBILE SUBSIDY PROGRAMS
REF: STATE 4753
1. Post has found no publicly-available information on
actual or proposed federal government subsidies to the
automobile industry in Belgium. While the federal government
does allow special tax treatment for overtime that has
benefited the automotive sector, the arrangement is not
specific or limited to the automotive sector.
2. The regional government of Flanders, however, has in
recent years given training subsidies to automakers as a way
of supporting plants located in the region. The Flemish
Government initially paid up to 20 percent of retraining
costs (subsidy amounts in parentheses) for Volvo (estimated 6
million euro),Ford (12.8 million euro),Opel (13 million
euro) and Audi Brussels (14 million euro). The European
Commission, however, ruled sometime in 2006 that the Flemish
subsidies were too generous and limited them to 10 percent.
3. In the context of protecting the Antwerp Opel plant whose
closure by GM Europe has been rumored in recent weeks, the
Flemish government has indicated a willingness to provide an
undetermined amount of government guarantees.
BUSH
.
SIPDIS
STATE FOR EEB/TPP/MTAA BRIAN NAFZIGER
STATE PASS USTR ROY MALMROSE, LESLIE YANG
COMMERCE FOR 4212/ITA/MAC/EUR/OECA/WNE/JLEVINE
E.O. 12958: N/A
TAGS: ECON EFIN ETRD PREL WTO
SUBJECT: BELGIUM: AUTOMOBILE SUBSIDY PROGRAMS
REF: STATE 4753
1. Post has found no publicly-available information on
actual or proposed federal government subsidies to the
automobile industry in Belgium. While the federal government
does allow special tax treatment for overtime that has
benefited the automotive sector, the arrangement is not
specific or limited to the automotive sector.
2. The regional government of Flanders, however, has in
recent years given training subsidies to automakers as a way
of supporting plants located in the region. The Flemish
Government initially paid up to 20 percent of retraining
costs (subsidy amounts in parentheses) for Volvo (estimated 6
million euro),Ford (12.8 million euro),Opel (13 million
euro) and Audi Brussels (14 million euro). The European
Commission, however, ruled sometime in 2006 that the Flemish
subsidies were too generous and limited them to 10 percent.
3. In the context of protecting the Antwerp Opel plant whose
closure by GM Europe has been rumored in recent weeks, the
Flemish government has indicated a willingness to provide an
undetermined amount of government guarantees.
BUSH
.