Brussels, 20/11/2009 (Agence Europe) - On Friday 20 November, the European Commission announced two measures taken against Spain concerning its state aid programme. On one hand, Brussels calls on Spain to recover aid granted by two provinces, but declared incompatible by a judgement of the Court of Justice of the EC in 2007. On the other, the Community competition demands recovery of aid granted to the Magefesa group, declared illegal by the Court in 2002.
Concerning aid to the Basque provinces of Guipúzcoa and Alava, the Commission notes that Spain has not fully recovered the illegal state aid, as it had an obligation to do following the Commission's decisions of December 2001 and a Court ruling of 2007. The Commission's request on Friday takes the form of a reasoned opinion, the second stage in infringement procedure for failing to implement a Court judgement. The fiscal aid schemes in question granted a 10-year corporate tax exemption for newly created firms in the three Basque Provinces. The Commission considers that this provides a selective advantage to certain companies and ordered Spain to recover aid under these schemes.
With regard to the Magefesa Group (Indosa-CMD), the Commission notes that no notification of aid recovery has reached it to date. Aid had been granted in the form of loan guarantees granted under non-commercial conditions, subsidies that were not reimbursable and interest rate subsidies. The aid to Magefesa during the nineties were condemned by the Commission in 2001, then by the Court of Justice in 2002. The company, through its subsidiaries Migasa, Gursa, Cunosa and Indosa, produces kitchen utensils in stainless steel and small electrical appliances. The Commission announced on Friday that it had sent a letter of formal notice to Spain, the first stage in the infringement proceedings foressen by the EC Treaty for failing to implement a Court ruling (Article 228). (C.D./transl.jl)