France: State loan for Renault in return of a pledge to increase local content and to maintain employment
Description
On 17 February 2010, Renault received a EUR 100 million state loan for electric vehicules in return of a pledge to increase local content and to maintain employment.
According to Dow Jones, La Correspondance Economique and other media, Mr Patrick Pelata, Renault's chief operating officer, explained that Renault borrows from the state (and not from its banks) because their borrowing capacity is not infinite. No evidence for an interest rate below market rates could be identified.
The same press articles mention that Estrosi said that Renault has pledged to try to get the local content for the development of electric cars up to 70% (up from 40%), and that the loan agreement includes a clause under which Renault has also committed to maintain employment levels at Flins, a Renault plant west of Paris.
Except for announcing the meeting between Estrosi and Pelata, official sources would not comment on this accord accord.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered: 20/03/2010
Implemented: Yes
Date of inception: 17 Feb 2010
GTA Evaluation: Amber
Source:
- Dow Jones Business News, 17 February 2010: Renault Gets EUR 100 Million State Loan For Electric Vehicles
- La Correspondance Economique, 18 February 2010: L' Etat va accorder un prêt de 100 millions d'euros à Renault pour la production de ses voitures électriques à Flins.
- Industry Ministry, 15 February 2010 8http://www.minefe.gouv.fr/discours-presse/discours-communiques_finances.php?type=communique&id=3926&rub=1)
Government Response:
- 580 reads
