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Car Industry Funds "Untouched"

Published söndag 31 maj 2009 kl 15.41

The Swedish government won't make it easier for Sweden's ailing car industry to get money from the support package set up by the government to help car-makers like Volvo and Saab last year.

The 3.4 billion US dollar package was set up just before Christmas, but almost 6 months later not a single penny has been paid out.

Top civil servant at the Ministry for Enterprise, Jöran Hägglund, says he is glad that no money has been handed out yet. He told Swedish Radio News that had the rules been more flexible, then much of the money could have ended up in the central coffers of General Motors in the USA, currently about to apply for Chapter 11 bankruptcy. General Motors is the owner of Saab motors.

The government has not yet applied for funds from the EU's globalisation fund either, according to Swedish Radio News. Labour Market Minister Sven-Otto Littorin promised to do so back in February, but no application has yet been sent in. The department blames the complicated application procedure for the delay. Finland, Germany, France, Malta and Spain have already received money from the fund.

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