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A new row over French protectionism has broken out, as EU leaders hold a summit in Brussels on the economic crisis. It followed the news that carmaker Renault was moving some production from Slovenia to create 400 jobs in France. The European Commission said it would seek urgent clarification. It comes only weeks after the EU agreed France could give state aid to its carmakers.

The BBC's Oana Lungescu in Brussels says the row over Renault could not have come at a worse moment for the EU, just as its leaders are calling on the US and others to tackle the global crisis by avoiding all forms of protectionism.

The argument erupted after French industry minister Luc Chatel told French radio that Renault would relocate part of its production from Slovenia to a plant at Flins, near Paris, creating 400 jobs there. A Renault spokeswoman said the company intended to increase production both in Slovenia and France and the shift was intended to meet a shortfall in capacity at its Slovenian plant. It denied the move was linked to a pledge to keep jobs in France in exchange for state aid. But EU competition commission Neelie Kroes told the BBC she was highly surprised and was seeking urgent clarification from the French authorities. Ms Kroes said she had received a pledge from Mr Chatel just a few weeks ago that an $8bn state bail-out for carmakers would not be linked to moving jobs to France, our correspondent reports.