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Image header Agence Europe
Europe Daily Bulletin No. 7843
Contents Publication in full By article 24 / 56
GENERAL NEWS / (eu) eu/state aid

Commission orders recovery of aid provided by Belgium to Cockerill Sambre

Brussels, 16/11/2000 (Agence Europe) - The Commission has decided that the aid provided by Belgium to the steel company Cockerill Sambre SA are incompatible with the common market and must be recuperated. This concerns a sum of EUR 13.8 million granted by the Belgian State and the Walloon Region on 1 January 1999, and which should have been paid over a seven year period, between 1999 and 2005. The Commission feels that by granting this aid, the Belgian public powers had, in fact, taken charge of the companies running costs resulting from a reduction in working time, which is contrary to the steel aid code. Moreover, Belgium did not notify the operation. The plan for the reduction in working time, from 27 to 34 hours compensated by the hiring of 150 young employees, had been proposed by the trade unions and accepted by the Belgian company on condition that it did not shoulder the cost. The Commission feels that the financing by Belgium of the additional cost from the difference in working time is in contradiction with Community rules.

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