By Bruno Waterfield - 11th April 2005
London has failed to give EU competition watchdogs 24 hours notice over the emergency MG-Rover cash bail-out.
Britain should inform the European Commission before pumping state cash into failing industries.
Brussels competition enforcers can then check government aid does not breach stringent EU rules.
EU officials are urging the British government to submit details, “as quickly as possible”, of an emergency €9.5 million loan to pay the wages of MG-Rover workers while negotiations continue over the car-maker’s future.
“The statutory period is for the commission to be informed before the money is paid out,” said a Brussels spokesman.
“Until then we do not know whether the measures are compatible with treaty rules.”
The UK bail-out is expected to get the EU all-clear because the short-term government aid is low in state subsidy terms.
Rescue aid is likely to be approved if it is to be paid back within six months or if MG-Rover goes bust.
The commission is also unlikely to fuel controversy over MG-Rover during a period of intense UK election campaigning, said one EU source.
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