login
login
Image header Agence Europe
Europe Daily Bulletin No. 10409
Contents Publication in full By article 31 / 33
GENERAL NEWS / (ae) eu/state aid

Aid measures approved in four member states

Brussels, 30/06/2011 (Agence Europe) - On 29 June and 30 June, the European Commission cleared a series of measures in Ireland, France, Slovenia and Germany, considering them to be in line with EU rules on state aid. Thus:

- In Ireland, it cleared a joint plan for Anglo Irish Bank (Anglo) and Irish Nationwide Building Society (INBS), submitted on 31 January 2011, whereby they will be merged and resolved over a period of 10 years. The two Irish financial institutions received massive state support during the crisis after they overexposed themselves to the commercial loan and property development sector, which eventually caused their downfall. Their exit from the market deals with the distortions of competition caused by the support. The Commission has therefore authorised all aid granted to the two banks and to the entity formed after their merger, considering support as restructuring aid. It has closed its investigation into the restructuring of Anglo Irish Bank.

- In France, it concluded that: (1) The unlimited state guarantee granted to the Institut Français du Pétrole Energies Nouvelles (IFP) because of its status as a public body constitutes state aid compatible with the internal market as long as the IFP's economic activities are conducted solely on an ancillary basis and are connected with its main activity, which is public research. This decision was taken also taking into account the positive impact that its ancillary activities would have on the spread of scientific knowledge. (2) The procedure for transfer of equipment from French public ports to the private sector offers sufficient guarantees that equipment will be sold at the market rate. Such transfers do not, therefore, constitute state aid. This decision is based on France's undertakings to strengthen supervision of equipment transfer conditions, thereby allaying the doubts expressed by the Commission in April 2009.

- In Slovenia, the Commission issued clearance for the country's plan to grant financial support towards the closure of the Trbovlje Hrastnik coal mine located in the central region of Zasavska, considering it in line with the December 2010 Council Decision on state aid intended to facilitate the closure of non-competitive coalmines. The Slovenian plan involves financing towards a social programme to re-qualify workers and help them find a new job or create their own as well as to co-finance the pension if of those reaching retirement age. It should also cover costs relating to the rehabilitation of the site.

- In Germany, the Commission approved a plan by the German government to exempt selected groups of passengers to and from certain German islands from a newly-created tax on air transport. These passengers are residents, medical personnel and postal officials on the German islands of Juist, Norderney, Helgoland, Baltrum, Langeoog, Wangerooge and Borkum, and exemption concerns flights to and from these islands that do not have an effective ferry service. For exemption to apply, the island must not have a rail or road connection the mainland which is independent of the tide. The point of departure or arrival on the mainland must also not be more than 100 km away from the North Sea or the Baltic Sea coast, or it must be on another island. (F.G./transl.jl)

 

Contents

A LOOK BEHIND THE NEWS
THE DAY IN POLITICS
GENERAL NEWS
SUPPLEMENT