EC ready to support car firm

EC ready to support car firm

The European Commission is set to clear a rescue plan for Spanish carmaker Seat, a subsidiary of Volkswagen, according to reports yesterday. The Commission had launched an inquiry into whether a proposed Spanish government 30bn pesetas (pounds 243m) loan to Volkswagen had been made at market rates of interest and did not involve an element of state subsidy. But the Commission was withholding final approval until Spain submitted a restructuring plan to guarantee Seat's future viability.