BRUSSELS, Feb 20: The European Commission, increasingly concerned about protectionist tendencies in member states, has asked France, Spain and, on Friday, Italy to justify their auto sector aid packages.

The EU’s executive arm has “some concerns” over Italy’s plan to aid its ailing auto sector and was writing to Rome to seek more details, a spokesman said on Friday.

“The commission will write to the Italian authorities today asking them to provide precise details on the measures within five working days,” he added.

One particular area of concern is that the government

help seems to be available

only to businesses that sign a protocol with the government, he said.

Such aid “could be discriminatory” against companies who do not want to sign “and in that case it would be state aid because it would be selective” and threaten the free circulation of goods, he added.

A number of EU governments are planning or considering measures to help the European automobile industry, which saw the weakest sales in 15 years in 2008 with new car registrations plunging eight per cent.

Italian Prime Minister Silvio Berlusconi announced this month new measures worth 2.0 billion euros to boost the economy and help the auto industry, but he tied the aid to keeping factories at home.

Italy swiftly defended its plans.

The measures the government plans to take to support the Italian auto industry “are absolutely not discriminatory,” Andrea Ronchi, Italy’s minister for European affairs said in Rome.

Brussels, along with several EU nations, had already asked questions about the French auto plan, and has also asked Spain for details of its measures.

The French proposals in particular have been met with the protectionist tag.

President Nicolas Sarkozy has announced plans to lend PSA Peugeot Citroen and Renault three billion euros each and other measures in exchange for a promise not to shut French plants or sack French workers.—AFP