Brussels, 03/05/2000 (Agence Europe) - The European Commission has decided to initiate a formal investigation into a Belgian plan to grant regional aid to the Ford factory based in Genk (Flanders). The total cost of the investment notified by Belgium to the Commission amounts to 310 million euro, 6.5 million of which would be covered by State aid for regional purposes.
The Commission has evaluated this aid under the Community framework for State aid to the motor vehicle industry providing, in particular, for aid only being authorised if it is necessary for the location of a project in the region in question. To demonstrate the necessity of the aid, it has to be proven that the beneficiary has an alternative economically viable site for its location or part of it. Yet, the Belgian authorities have not mentioned any other possible location to that of Genk, whence the Commission's doubts as to the geographically mobile nature of the project, and, thus, the need for the aid. The formal investigation procedure does not prejudge the Commission's final decision but allows for transparency, as the interested parties will have to supply a maximum of information on which the final decision can be based. This decision follows the Commission's line of assessing projects involving state aid to the car industry strictly according to EU State aid rules.