The European commission left itself open to ridicule last night after it bowed to intensive lobbying from the German car industry and signalled it would delay a key reform designed to lower car prices in Britain and the rest of Europe.
In a move certain to infuriate consumer groups, Mario Monti, the EU's competition commissioner, said he was willing to consider delaying a crucial element of his long-awaited shake-up of the way cars are sold in the single market.
Under the plan, which has already been approved by the commission, car dealers would have the freedom to solicit and open for business anywhere in the EU, rather than being confined to specific geographical locations as is currently the case.
But the reform has alarmed Europe's powerful auto lobby and provoked the ire of Gerhard Schröder, the German chancellor, who is facing an election later this year and is anxious not to upset the likes of BMW and Volkswagen. Mr Schröder took the unusual step of travelling to Brussels this month to lobby the commission over the proposal, arguing that it would lead to German job losses and damage his country's competitiveness.
Although commission sources deny that Mr Monti has "been got at" the famously inflexible commissioner yesterday told the European parliament that he was willing to consider a more lax regime.
"I am ready to reflect on the usefulness of a somewhat longer transition period regarding the entry into force of this specific measure," he said, conceding that he was confronted with "heavy lobbying efforts against the proposal".
The new Europe-wide rules for car sales already have a one-year transition period effective from this October and Mr Monti did not specify how much longer he would be prepared to give the industry to adapt to the changes.
He did signal, however, that there was no chance of him mothballing the measure altogether, telling MEPs that "we should not fall victim to the dark scenarios that are often repeated by lobbyists."
News that Mr Monti is willing to allow manufacturers to retain their stranglehold on dealers for the foreseeable future will be seen as a serious blow for British consumers who are repeatedly shown to pay more for their vehicles than other Europeans.
