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Competition Watchdog Approves Saab Deal

Published måndag 8 februari 2010 kl 12.54

The EU's competition watchdog has approved the Swedish government's plans to act as guarantor for the European Investment Bank's loan to carmaker Saab.

The European Commission ruled on Monday that the government's guarantee was in line with current EU rules on state aid, which were drawn up to help companies through the economic and financial crisis.

"The state guarantee will contribute to the implementation of Saab's business plan without giving rise to any undue distortions of competition," said EU Competition Commissioner Neelie Kroes.

Sweden's centre-right government made its loan guarantee last month after US automaker General Motors announced it was selling Saab to Dutch luxury sports car maker Spyker.

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