Germany delayed a decision on General Motors Co.'s aid request for the loss-making Opel division as the government focuses first on special budget cut talks.
"The meeting of the steering committee has been postponed until next week but we haven't agreed on a new date yet," Economy Ministry spokeswoman Beatrix Brodkorb said today at the government's regular Berlin press briefing. "There are lots of weighty issues under discussion now."
The government's aid assistance steering committee will meet as early as June 7 to decide on GM's request for 1.1 billion euros ($1.3 billion) in federal and regional assistance, according to two people familiar with the matter, who declined to be identified discussing information that isn't public. The panel was originally scheduled to meet today.
GM has been seeking European state aid of 1.92 billion euros to fund a 3.6 billion-euro reorganization, which includes closing a factory in Antwerp, Belgium, as it eliminates about 20 percent of Opel's production capacity. The carmaker, which posted an $865 million first-quarter profit, reported its only regional loss in the first three months in Europe.
Economy Minister Rainer Bruederle, who said June 1 he has the "final say" in the aid decision, called off today's meeting because he needs more time to discuss Opel with German Chancellor Angela Merkel, said one of the people. Merkel is set to begin budget cut talks with her Cabinet June 6 to discuss measures to save about 10 billion euros per year.
Bruederle, who has said he's skeptical about granting GM aid, may seek to withhold a possible rejection of the request until June 7 when Merkel is due to brief the public on the results of the talks, the person said.
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