The Centre for European Economic Research (ZEW) and the Catholic University Leuven (K.U. Leuven) are pleased to announce their joint workshop on "The Economics of Public Support to the European Car Industry". As a response to the recent economic and financial crisis the European Commission, at the end of 2008, adopted the Temporary Framework for State aid for Member States to tackle the effects of the credit squeeze on the real economy. This Framework introduced new instruments for State aid and simplified legal procedures for granting State aid. In parallel to those temporary instruments, traditional public support instruments (e.g. scrapping schemes, loans of the European Investment Bank) were used to support the European economy to overcome the crisis. The European car industry appears to be one of the major beneficiaries of that overall public support and especially under the Temporary Framework. However, although public support measures can help address the short-term challenges the car industry faces, they may undermine its long-term competitiveness, e.g. by postponing the settlement of structural problems (such as overcapacity).
The workshop takes place within the framework of the international multiannual research programme "Strengthening Efficiency and Competitiveness in the European Knowledge Economies" (SEEK), funded by the German State Baden-Württemberg and carried out by the ZEW. We will present preliminary results of the on-going SEEK project "Fostering Competitiveness of the European Car Industry" devoted to the questions above. Furthermore, the workshop brings together various stakeholders of the European car industry, representatives of EU institutions and national administrations, industry and academia to discuss the topical issue of public support to the European car industry.
Per invitation only. The number of workshop participants is limited.