French aid sparks protectionist row

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} In a controversial move that has raised questions of protectionism around Europe, French carmaker Renault is to shift some car production back to France after the guarantee of state aid.   The company will create 400 jobs in France by bringing one car production line back to the Paris suburbs from Slovenia, said Luc Chatel, a junior minister for industry, in a local radio interview.   The French government agreed last month to give loans to Renault and Peugeot Citroen in return for keeping French plants open, but the European Commission has demanded clarification about the plan, saying it may be protectionist.   EU competition commissioner Neelie Kroes told the BBC she was highly surprised and was seeking urgent clarifications. Ms Kroes said she received a pledge from Mr Chatel just a few weeks ago that an $8 billion state bail-out for car firms would not be linked to moving jobs to France.   If the aid proves to be conditional, Ms Kroes said, it is illegal under EU rules and should be paid back.   The incident has come at an embarrassing time for Europe, with UK Prime Minister Gordon Brown and other European leaders doing their best to persuade the United States to avoid protectionism in its recovery plans     *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *