Germany divided over aid for Opel

BERLIN — The new German coalition government led by Chancellor Angela Merkel was in turmoil over the issue of state aid for Opel, while other European Union states with Opel factories had pledged more than €1bn, a magazine report said on Saturday.

N ews magazine Der Spiegel said that, ahead of a visit by new General Motors (GM) Europe chief Nick Reilly to Brussels today , Spain, Britain and Belgium had offered state aid 300- and 500m million euros each to return Opel to profitability.

Britain had said aid of about €400m was feasible, Spain had said it would find a similar amount, Belgium had bid €500m and Poland had offered tax incentives, it said.

However, on Saturday, German Economy Minister Rainer Bruederle repeated his opposition to offering GM government money for Opel.

This month, GM controversially reversed its decision to sell Opel, and said it needed 3,3bn in European state aid to fix its German operations .