Group items tagged

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.

Nestled in rocky hills about 40 minutes from Tehran, Pardis Technology Park is supposed to be Iran's answer to Silicon Valley. But these days, Pardis is deserted and forlorn, with many buildings standing unfinished, their exposed girders rusting. Foreign companies are reluctant to invest in the Islamic Republic, and domestic outfits are cash-strapped.

many Iranians like the prospect of working with US companies rather than the Europeans that have been the only game in recent years. "Iranian officials believe Americans are more straightforward in business deals," says Narsi Ghorban, managing director of Narkangan Gas to Liquid, a Tehran energy company. "They get what they want and give you your due."

If businesspeople do come to Tehran, a sprawling city built on steep hills that lead up to snow-capped mountains, they will find some conditions improved. Mobile telephones from other countries finally work, and several private hotels have sprung up. Since the 1979 revolution, social life has never been more liberal. Boys and girls hold hands in public, women show some hair outside their scarves, and checkpoints where police once searched cars for alcohol have all but disappeared. But there's still enough fear of the regime that many people decline to be interviewed.