France wants to check if U.S. auto industry loans fit WTO rules

France President Nicolas Sarkozy wants U.S. aid to the auto industry to be checked to see if it fits the World Trade Organization rules. Sarkozy was under fire earlier this month from his EU allies after offering $6 billion euro ($7.64 billion) state loan to Renault and PSA Peugeot-Citroen. In return he asked for the two companies to make an unwritten pledge to not close their facilities in France.

“We need to see if the U.S. aid is compatible with the WTO,” Sarkozy said.

The French President said that the officials in the EU should pay less attention to whether car plans meet EU rules and must coordinate a plan to help the European car industry.

European Union will meet in Brussels this Sunday to discuss the financial crisis and Sarkozy said he would as them to consider an EU-wide auto industry plan.

Source: Reuters