German Fin Min attacks Nokia over plant closure

BERLIN, Jan 18 (Reuters) - German Finance Minister Peer Steinbrueck said on Friday that Nokia's (NOK1V.HE: Quote, Profile, Research, Stock Buzz) decision to close a plant in Germany was an example of "caravan capitalism," and that the firm was risking its reputation.

Nokia, the world's top cellphone maker, said on Tuesday it was closing the plant in Bochum because it was not competitive and was moving production to Romania.

"This is the expression of a caravan capitalism which systematically undermines support for this economic and social system. People are losing confidence and that is extremely dangerous and of political importance," Steinbrueck told German radio.

Steinbrueck said it was unlikely the Finnish company would reverse its decision to move away from the state of North Rhine-Westphalia (NRW).

"I don't think we should raise any false hopes. But I can understand the outrage," he said.

Some politicians have argued that Nokia should repay subsidies it has received from Germany.

When asked about this, Steinbrueck said it appeared that the NRW state government could be justified in seeking redress on the issue of whether Nokia fulfilled the conditions for subsidies in the region. (Reporting by Sylvia Westall and Iain Rogers)