The European Commission opened an in-depth investigation on Monday 1st July to determine whether or not a Spanish public measure supporting PSA for investment in an existing plant in Vigo complies with EU State aid rules.
The group plans to invest 500 million euros in new production lines and process improvements at its Vigo plant in Galicia (western Spain). Work to this end began in April 2015.
In 2017, Madrid notified the Commission of its intention to grant PSA public aid of 20.7 million euros for this project.
The institution has doubts as to whether the aid is compatible with the 2014 Regional State Aid Guidelines. In particular, it wonders whether the aid attracted the investment project away from an economically more disadvantaged region in another Member State or whether PSA would not have invested in Vigo anyway, even without the aid. It also questions the eligibility of the aid, the contribution of regional official development assistance, its justification and its proportionality. In addition, the Commission does not exclude at this stage that the measure may have a negative impact on competition in the automotive sector.
It has therefore decided to open an in-depth investigation to shed light on these points. (Original version in French by Lucas Tripoteau)