Jobs must be created rather
than moved, European Competition Commissioner Margrethe Vestager
said on the Embraco case Wednesday.
As Premier Paolo Gentiloni said no to "fiscal dumping" and
Industry Minister Carlo Calenda said scouting for new investors
was going ahead, Vestager said it became a concern for the
European Commission if taxpayers' money was used.
Brazilian fridge compressor maker Embraco, a unit of US
multinational Whirlpool, is moving 500 jobs to Slovakia where
labour costs are lower and Italy has said State aid may be
involved.
"We're here to make sure the rules are respected and make
sure that jobs aren't moved but created," Vestager told a press
conference about her meeting with Industry Minister Carlo
Calenda.
"Everyone may have a reason to move, that's not our business,
but it becomes a concern for us if taxpayers' money is
involved", she said.
"Funds should be used to create new jobs and not to move jobs
from one country to another," she said.
Vestager said Embraco's offshoring 500 Italian jobs to
Slovakia is a serious issue and the EC will assess it to see if
State aid rules have been breached.
"The Embraco case is a serious thing and the Commission will
assess whether the rules on State aid have been respected, but
let's not give judgements before knowing the real facts,"
Vestager said in Brussels.
On Tuesday she promised Industry Minister Carlo Calenda she
would be "intransigent" in the case.
Italy argues Slovakia's low labour taxes and other incentives
may have broken State-aid rules.
The Brazilian unit of US multinational Whirlpool, which makes
fridge compressors, is shutting its plant near Turin with the
loss of almost 500 jobs.
Invitalia, the industry ministry's inward investment agency,
on Wednesday met an unnamed foreign firm that may be interested
in the Italian plant of Embraco, Calenda said.
"Scouting is going ahead," said Calenda, adding "I will meet
trade unions next week and bring them up to date on
developments".
Premier Paolo Gentiloni, for his part, said "no to fiscal and
social dumping in the EU".
He said this was why the government had made the Embraco
issue "an exemplary case".
Earlier Economy Minister Pier Carlo Padoan said the European
Union must be "severe" if Embraco's moving production from Italy
to Slovakia involves State aid on the part of the eastern
European country.
"I have great confidence in the competence and objectivity of
Vestager," Padoan said.
"If there is State aid (allowing low labour costs), as is
possible, I expect the Commission to take severe measures"
because State aid "is a serious violation of the internal
market", he said.
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