ABSTRACT
The European Union is about to introduce a new policy to support motor car production. No matter how many vehicles the industry produces, the EU Commission will pay a subsidy equal to at least half production costs to help any manufacturer to sell cars in eastern Europe and Asia. Any surplus cars not bought by EU motorists or sold abroad will be bought up by the Commission, stored, allowed to rust and then sold off for scrap so that they can be melted down and then manufactured into more motor cars…. But wait, this is only a dream-or rather a nightmare. There is no such EU policy, nor is there ever likely to be. None the less, such a policy would be the industrial equivalent of the policy which the European Union actually does use to support farm prices.
