Merkel warns Opel state aid no precedent

Merkel warns Opel state aid no precedent
Photo: DPA
German Chancellor Angela Merkel on Tuesday warned that state aid for carmaker Opel should not be considered a precedent by other troubled firms.

“I still consider that with Opel we a special case,” Merkel said at a conference in Berlin.

She said there were clear procedures for any other companies facing economic ruin and no one should expect the government to step in at the first signs of trouble.

Merkel said the decision to offer Opel billions in short-term loans and state guarantees was “justifiable but not without risks.”

The Frankfurter Allgemeine Zeitung reported Sunday that over 1,100 German companies have asked the government for help weathering the current financial crisis.

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