Brussels, 04/02/2000 (Agence Europe) - The European Commission has opened an investigation into six sets of State aid the Netherlands has paid to manure processing companies, following expiry, in 1994, of the aid scheme approved by the Commission. In July 1989, the European Executive approved the "Bijdrageregeling Proefprojecten Mestverwerking" scheme (BPM scheme) that allowed for the financing of pilot projects for processing excess manure into fertiliser. The competition services had considered that this scheme could be authorised on an exceptional basis to encourage the introduction of innovative technologies and extended the authorisation until 1994.
Following complaints, the Commission noted that six sets of aid representing a total of 2.5 million euro had been granted after 31 December 1994 and that they risked distorting competition between organic fertiliser producers and between breeders who thus obtain new outlets for their surpluses, without personal investment. It has therefore decided to open an investigation procedure.