Brussels, 21/09/2000 (Agence Europe) - The European Commission has decided to revoke a negative decision taken in 1998 concerning measures in favour of Sniace SA, a Spanish viscose and synthetic fibres producer. The Commission had initially estimated that the measures taken constituted illegal aid. Sniace had concluded an agreement with the public authorities of its country on the deferral of social security debts with interest rates that did not correspond to those on the market, as well as a reimbursement agreement with Fogasa (Wage Guarantee Fund), also at advantageous interest rates. The Commission had therefore considered that this was discretionary treatment in favour of the company and that the aid was not intended for restructuring. Nonetheless, in the light of a ruling from the European Court of Justice in a similar case (C342/96 Spain versus the Commission; public aid granted by Spain to Tubacex), the Commission went back on its decision and ruled that it was not a question of aid.
With its decision, the Court had cancelled a negative decision by the Community Executive considering that, in this kind of reimbursement or deferral agreement, the State was not acting like a public investor whose behaviour should be compared to that of a private investor who invests capital in the aim of making a profit, but as a public creditor who, after the fashion of a private creditor, seeks to recover the amounts due. It was in this light that the Commission reexamined the Sniace case and decided that it was not necessary to revoke the earlier decision.