Plans to liberalise the €10 billion European car parts market look set to be approved by the European Commission this month, to the dismay of carmakers and in spite of opposition by German and French EU commissioners.
Günter Verheugen, the German commissioner nominated as the EU's competitiveness chief from November 1, sided with carmakers such as VW in opposing the proposal, which aims to cut car repair bills for consumers.
The dispute is likely to be a foretaste of future battles between free market liberals in the Brussels executive and those who fear that fully opening the single market could imperil the EU's industrial base.
Frits Bolkestein, the liberal EU internal market commissioner, is determined to launch the proposal before his term in office expires on October 31, and is privately scornful of what he sees as special pleading on behalf of powerful industrial interests.
"This is another classic example of Germany and France taking a protectionist approach to the single market," said one of Bolkestein's allies.
Carmakers have fought a ferocious lobbying campaign against the European Commission's plan to open up the market for replacement spare parts such as doors, bumpers and windscreens, to allow independent manufacturers to compete.
The manufacturers argue that the proposals, which would give independent manufacturers the rights to sell their products throughout the EU, could jeopardise safety, employment and intellectual property, as well as profits.
The lobbying effort has already delayed a Commission decision from May to June, and then again until September.
Verheugen, supported by French commissioners Pascal Lamy and Jacques Barrot, and several others from carmaking countries including the Slovakian Jan Figel, now argue that a final decision should await the arrival of Jose Manuel Barroso's new administration on November 1st.
However, at a meeting of senior Commission officials last week, a significant majority supported Bolkestein's view that the delays should end. Aides to Romano Prodi, the outgoing European Commission president, said he was backing Bolkestein.
The new proposal, which is likely to come under fierce scrutiny in the European Parliament and from member states, does not apply to "non-visible" parts, such as engines, or to the original components in cars. Financial Times Service