German rescue fund to discuss extending Opel aid

Gasgoo From Reuters

Business advisors to Germany's rescue fund meet in Berlin on Monday to discuss whether to recommend extending over 1 billion euros ($1.23 billion) in loan guarantees to German carmaker Opel.

Parent General Motors GM.UL had requested state aid from European governments to help fund a costly turnaround plan at Opel that would shrink its production and labor capacity by about 20 percent.

GM's own return to the black has provided opponents within Germany plenty of ammunition to argue against aid to Opel.

The advisors to the rescue fund are mainly former captains of German industry, such as ex-Schering CEO Hubertus Erlen or industry lobby group BDI's erstwhile head Michael Rogowski.

Even if they agree on a recommendation on Monday, the decision ultimately remains a political one, and German Economics Minister Rainer Bruederle has indicated more time will pass before the issue can finally be settled.

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