Brussels, 24/02/2010 (Agence Europe) - On Wednesday 24 February, the European Commission made a series of decisions regarding state aid, including the launch of inquiries into a German anti-crisis measure to help companies temporarily experiencing difficulties, and into a loan agreed by the Slovak state to Železnièná spoloènos Cargo Slovakia a.s (ZSSK Cargo). The Commission has taken Greece to the European Court of Justice because the country has still not recovered state aid illegally granted to hundreds of companies in the form of tax exemptions. In addition; the Commission has for the first time agreed that farmers be compensated for damages to their flocks caused by wolves in Saxony.
End of investigation into Danske Statsbaner. The European Commission has decided to close its inquiry into the public-service contracts concluded with the Danish railway company Danske Statsbaner (DSB) for transporting passengers. This is the first time that the Commission is applying the new regulation, which entered into force on 1 January 2009, on compensation in the railway sector. The public service contracts oblige DSB to respect certain obligations in terms of destinations served, the frequency of services and the quality of rail services provided to passengers. In exchange, the Danish government pays DSB annual compensation for the costs incurred by the execution of these obligations. The spokesperson for Joaquín Almunia, the commissioner for competition, declared that “the Commission is sure that the compensation was limited to covering costs incurred by providing public services and that the state is sure that the company is well managed and provides a safe quality service”. Denmark has modified the mechanism and has received assurances that the company is seeking to modernise its equipment and provide a high quality service, added the spokesperson. In an effort to guarantee healthy competition on the passenger railway transport market, the Commission must ensure that public service contracts do not lead to overcompensating the railway company or give it incompatible state aid.
Investigation into loan to Slovak freight railway operator. The Commission has decided to launch a probe to determine whether the loan of €166 million from the Slovak state to Železnièná spoloènos Cargo Slovakia a.s, the Slovak rail freight operator (currently experiencing financial difficulties), is compatible with EU rules on state aid. At this stage, the Commission considers that this aid may be breaking Union law and conferring an unfair advantage on the beneficiary over its competitors. The launch of this procedure will enable the Commission to carry out a detailed examination of what exactly constituted state aid and in what conditions the aid was granted. In this context, the Commission will specifically examine whether a private investor would have responded in the same way as the Slovak government.
Investigation opens into loan to Czech Airlines. The Commission has opened an investigation into a loan of 2.5 billion Czech crowns (€94 million) granted on 30 April 2009 to ÈSA - Czech airlines a. s. by the public body Osinek a. s. On 26 October 2009, the Czech authorities decided to release assets guaranteeing the loan granted by Osinek to allow ÈSA-Czech airlines to stay in business. So far, the Commission believes that the measures taken to support ÈSA-Czech airlines could constitute state aid by unfairly penalising the airline's rivals. The opening of the procedure will enable the Commission to provide a detailed examination of the precise nature and condition of these measures in favour of de ÈSA-Czech airlines and determine whether the measures constitute state aid. If this is the case, the Commission will decide whether this aid is compatible with the internal market. The Commission intends to decide whether a private investor would have acted in the same way as the Czech government.
Investigation into German rules on fiscal loss carry-forward scheme. The Commission has opened a formal investigation into a German tax advantage granted to ailing companies when there are significant changes in their shareholding. It provides them with the possibility to carry forward fiscal losses, i.e. taxable income in future tax years may be reduced by setting-off the losses incurred in the past (Sanierungsklausel). These are anti-crisis measures taken by the German government to assist viable companies that are temporarily making a loss. According to the German authorities, the rules on state aid do not apply to the planned measure. The Commission, however, has doubts about this, given that the measure appears to provide assistance to companies in difficulty but does not allow healthy companies to carry forward their fiscal losses. The Commission is also concerned by the question of these measures' compatibility with the EU guidelines on company rescues and restructuring.
Austrian federal museums. The European Commission has endorsed a scheme allowing the Austrian minister of finance to assume liability for damage to art objects borrowed by Austrian federal museums for exhibition in Vienna. The duration of the scheme covers a period of 6 years (1 January 2010 until 31 December 2015).
A Commission spokesperson said that this aid encourages loans between museums and therefore allows citizens to see works of art that they would never have seen without this system of aid.
Greece taken to European Court of Justice for non-recovery of illegal aid. The Commission has decided to take Greece to the European Court of Justice for failure to respect a Commission decision of 18 July 2008. This decision requested that Greece recovered state aid illegally granted to hundreds of companies in a variety of different sectors in the form of tax exemptions (Greek law 3220/2004 authorised the companies concerned to deduct up to 35% of profits in 2003 and 2004 provided they used the tax exemptions to fund certain investment). So far, Athens has not recovered any of the aid to the beneficiaries, which explains why the Commission has taken this approach.
Saxony wolf: farmers compensated. This is a first-ever: the Commission has authorised the region of Saxony to grant farmers up to 80% compensation for damages caused by carnivores. The authorised aid system has a total budget of €200,000 and will apply until the end of 2013. Since the return of the indigenous wolf in Saxony, damage has been caused to flocks. Damage caused to animal rearing, including sheepdogs and bee colonies, as well as related costs such as those of lost beehives and costs incurred in removing animal carcasses will receive up to 80% compensation. Farmers whose land is in the main wolf zone (http: //http://www.wolfsregion-lausitz.de ) must take corresponding preliminary prevention measures (closing off land, sheepdogs) if they are to be eligible for aid. Damage must be declared to the local environmental authority within 24 hours and claims for aid must be presented within six months of the incident in question being declared. The aid system so far only covers damage caused by wolves but in the future could be extended to cover damage caused by lynx and bears. (L.C./O.L./transl.fl)