The European Commission is this week expected to approve a UK government proposal to give Nissan Motor £40 million for development of its Sunderland car plant.

News agency Reuters quotes an unnamed EU official as saying the subject of the aid package is "on the agenda" of the EU executive's weekly meeting, due to be held tomorrow in Strasbourg, adding that the recommendation is to give the go-ahead. But the source added that it was ultimately up to the company to decide whether to take up the UK offer.

Previously Nissan has pointed out that the strength of the pound is concern on whether to build the new Micra in the UK or elsewhere in Europe - not the UK aid package.