On Friday 4 December, the European Commission found that implementation of the aid scheme for the Madeira Free Zone (Regime III) in Portugal does not comply with State aid rules.
The Commission argued that the investigation showed that planned tax reductions were applied to companies that made no real contribution to the region’s development, including jobs created outside Madeira (and even outside the EU), in breach of the conditions of EU state aid rules.
Portugal must now recover the...