Brussels, 15/12/2009 (Agence Europe) - After an in-depth investigation opened in February 2009, the European Commission has found that a tax exemption the Dutch state intends to grant for natural gas used in installations for the production of ceramic products would be in breach of EU state aid rules and therefore cannot be implemented. In particular, the Commission found that the tax exemption would provide a selective advantage to the Dutch ceramic sector and so constitute operating aid. Such aid can be authorised only if it furthers, at least indirectly, environmental objectives, in line with the requirements of the EU guidelines on state aid for environmental protection. As the Netherlands has not demonstrated how the measure would comply with the relevant provisions of these guidelines, the Commission has concluded that the measure would be incompatible with EU state aid rules. Competition Commissioner Neelie Kroes said: “Energy tax exemptions that merely subsidise selected companies' operating costs without pursuing any environmental objective are illegal under EU state aid rules and will not be tolerated”. (O.L./transl.jl)