login
login
Image header Agence Europe
Europe Daily Bulletin No. 10226
Contents Publication in full By article 20 / 27
GENERAL NEWS / (eu) eu/state aid

Commission refers Spain to Court for failure to respect 2002 Court ruling to recover illegal aid from Magefesa group

Brussels, 30/09/2010 (Agence Europe) - On Thursday 30 September, the European Commission decided to refer Spain to the Court of Justice for failing to recover illegal aid granted to Indosa, a subsidiary of the electrical appliance manufacturer, Magefesa, and its own subsidiary, CMD. This was despite an earlier Court ruling in 2002 confirming the unlawfulness of such aid and ordering that aid should be recovered. The Commission calls on the Court to impose a daily fine of €131,136 for each day after the second Court ruling until the infringement ends, and a lump sum based on €14,343 per day elapsed since the 2002 Court judgement until the second Court ruling, the spokesman explained. The aid had been granted by Spain in the form of loan guarantees and subsidies in particular, to four Magefesa subsidiaries. Aid had been declared illegal by the Commission back in 1989 before the Court's confirmation of this decision with a 2002 ruling after infringement proceedings. The aid had been recovered for three of the Magefesa subsidiaries - Migasa, Gursa and Cunosa - but not for Indosa or its subsidiary, CMD. Formal infringement proceedings for failure to comply with the Court's ruling had been initiated in 2009. The magnitude of the fines imposed takes into account the gravity of the infringement and the very long period that has elapsed since the previous Court judgement. (F.G./transl.jl)

Contents

A LOOK BEHIND THE NEWS
THE DAY IN POLITICS
GENERAL NEWS