Fiat’s grand plans have been foiled by the Canadian parts manufacturer Magna International, which has joined with Russian bank, Sberbank to make a deal to buy the European operations of GM. Under the terms of the deal GM would retain a 35 per stake in the new company, the Russian government controlled Sberbank would take 35 per cent, Magna would hold 20 per cent and Opel’s employees would control interest in the remaining 10 per cent.

Chrysler’s long-term future, which would have brightened as part of a larger company, has darkened with Fiat’s apparent loss to Magna for GM’s European operations.

For an in depth analysis of this emerging story including its ramifications for the European Union, please read Saturday’s story in the New York Times.

This was the strongest pushback yet, from a European leader, after the US criticism that Europe was not spending enough to stimulate demand.

European politicians have gone into damage control mode, the major EU nations largely ignoring Topolanek and his remarks.