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Image header Agence Europe
Europe Daily Bulletin No. 10549
ECONOMY - FINANCE - BUSINESS / (ae) state aid

Italy taken to court for failure to claw back illegal aid

Brussels, 08/02/2012 (Agence Europe) - On 8 February, the European Commission decided to send Italy to the European Court of Justice for failing to respect the Commission decision that the subsidised electricity prices for metal manufacturers Portovesme, ILA and Eurallumina are incompatible with EU state aid rules and therefore some €18 million worth of illegal aid must be recovered from the beneficiaries. Italy has not yet done this, hence the decision to take it to court.

On 23 February, the Commission found that preferential electricity tariffs granted by Italy to Portovesme, ILA and Eurallumina provided those companies with an undue economic advantage over their competitors and distorted competition in the internal market. “The aid, which was financed by all electricity users in Italy, merely reduced their operating costs and improved their competitive position without furthering any goal of common interest”, argues the Commission.

The European Commission decided on the same day that the sale of a food processing plant by the Swedish municipality of Vänersborg to real estate company Hammar Nordic Plugg breaks EU state aid rules: “since the sale was not carried out at market conditions, it gives the company an undue economic advantage over its competitors. The Commission has therefore ordered Sweden to recover SEK 14.5 million (around €1.61 million) from Hammar Nordic Plugg.

The Commission decided to open an in-depth investigation to determine whether financial agreements between public authorities and the airport of La Rochelle in France, and the award of trade deals between the airport and some airlines are compatible with EU state aid rules.

The Commission decided, however, that an Austrian renewable energy generation scheme which receives state aid complies with EU state aid rules “because it creates incentives for an increased use of renewable energy while containing safeguards to limit distortions of competition”. The scheme is designed to help Austria reach the mandatory national renewable energy target for 2020 laid down by EU legislation. (OL/transl.fl)

 

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