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Image header Agence Europe
Europe Daily Bulletin No. 10010
Contents Publication in full By article 22 / 34
GENERAL NEWS / (eu) eu/state aid

France is referred to Court for failure to recover illegal aid

Brussels, 30/10/2009 (Agence Europe) - On Thursday 29 October, the Commission stated its resolve to take France before the European Court of Justice for failure to recover illegal aid granted to the company Arbel Favet Rail. The manufacturer of railway wagons is to reimburse a total of €2 million. In April 2008, the Commission had, after an investigation, determined that two state loans granted to Arbel - located in Douai in northern Frances - had been made according to conditions that were more favourable than those the company normally enjoy. Funds were put forward by the Nord-Pad-de-Calais region and by the Communauté d'agglomeration du Douaisis. As the Commission had not received any information concerning recovery of the funds since the decision in April, it decided to refer the matter to the Court. On Thursday evening, the dossier had still not reached the Court in Luxembourg. Some observers feel this approach is used by the Commission to put pressure on a recalcitrant member state. If France recovers the funds in question or informs the Commission of a timetable for doing so, then the matter may be withdrawn from the Court before proceedings begin. (C.D./transl.jl)

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