Outlook: No more aid, please
Wednesday 02 February 2005
As it happens, the Nissan sweetener is precisely the kind of state aid that would be banned in future if Europe's new Competition Commissioner, Neelie Kroes, gets her way. She wants the aid budget re-directed from well-heeled multinationals in wealthy states to small companies in poorer ones.
There is a strong case to be made for abolishing subsidies altogether. A bad investment does not become a good one simply because the taxpayers of one country are prepared to subsidise it more heavily than those in another. But as long as EU member states have aid budgets to play with then this beggar-thy-neighbour mentality will remain.
Next up for RSA is likely to be MG Rover, which would like some state aid to oil the wheels of its Chinese rescue deal. MG Rover is just as entitled to seek government support for Longbridge as Nissan is for Sunderland, even if the Phoenix four that run it in the manner of a private fiefdom would seem a less deserving cause. They had better get a move on before Ms Kroes sticks her spanner in the wheel.
- 1 I was a Woman Against Feminism too
- 2 Fifty Shades of Grey movie trailer released: First look at Jamie Dornan as Christian Grey
- 3 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 The Tory donor whose firm is one of Britain’s biggest tax avoiders - with HMRC's blessing
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£18000 - £20000 per annum + OTE £25K: SThree: SThree Group has been well estab...
competitive: Progressive Recruitment: This really is a fantastic chance to joi...
£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...
£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...