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EU puts UK-Nissan deal under scrutiny

December 02, 2016

No of Views : 451

In accordance to the spokesman, "We have seen the press reports regarding Nissan and as a result the Commission... is in contact with the UK authorities,". Nissan's commitment to its Sunderland car plant, the UK's biggest, had been in doubt following the EU referendum. The European Commission says it is in contact with UK authorities after Japan's Nissan said it had been given "support and assurances" over Brexit. But after government pledges, Nissan is to build two key models in the UK. However, the agreement has raised fears that the government might have breached EU rules preventing unfair state aid to companies. But as long as it remains a member, the UK would not be able to favour particular companies. Mr Clark has insisted that that there was "no cheque book" involved in the assurances given to Nissan.

UK Business Secretary Greg Clark has said Nissan was told that the government would seek tariff-free access to EU markets for the car industry. Depending on the terms of the UK's exit from the EU, Britain may well no longer be bound by EU state aid rules following Brexit. In regards to the procedure and functioning, the commission spokesman gave the following words; "The UK authorities have not notified any support to Nissan for assessment under our state aid rules and we've therefore not taken any formal view of this matter."