CarBuyersNoteBook

The economic stimulus plan recently passed by Congress received widespread criticism for containing some conditions requiring that only United States steel be used for government-funded infrastructure projects. While Americans debate protectionism and its impact on world trade agreements, French President Nikolas Sarkozy has announced that $8 billion in government loans to French automakers Renault and PSA Peugeot Citroen should be contingent on Peugeot bringing the Czech plant back to France. “If we are to give financial assistance to the auto industry, we don’t want to see another factory being moved to the Czech Republic,” he said, referring to Peugeot Citroen’s seven-year old Czech plant.

As the global economy worsens, other nations are reining in tendencies towards globalization. “The French have signaled that they are willing to do things they know are illegal under E.U. law,” says Katinka Barysch, Deputy Director at the London-based Centre for European Reform. “But if one E.U. country goes down this route, others will feel they have to follow.”