The EU has been busy investing heavily in Morocco, not least in providing massive subsidies in order that Renault can start producing vehicles there.
Currently, Renault produces Dacia cars in Romania as it has done for over 20 years. Since February 2012, however, the EU has been pumping money into building a new factory for Renault, south of Tangier. The grants of around 400 million euros have been enhanced this year with a further loan of 440 million euros. On top of that, the EU has been heavily involved in the financing of “Tangier Med”, a complete overhaul of the key Moroccan port.
What is the rationale for shifting production of Dacia vans and cars from Romania? Labour costs in Romania are now seen as too high, with Romanian workers earning a mighty 250 euros per month (£215)! ■