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Image header Agence Europe
Europe Daily Bulletin No. 7914
Contents Publication in full By article 39 / 67
GENERAL NEWS / (eu) eu/state aid

Commission decides to investigate Dutch disposal system for car wrecks

Brussels, 01/03/2001 (Agence Europe) - The European Commission decided to open the investigation procedure foreseen by the Treaty (Article 88, § 2) against the elements of State aid susceptible of being present in the Dutch system for the disposal of waste from car wrecks.

The Commission's concerns covers, in particular, the EUR 45 tax paid by constructors and importers aimed at funding the premium for the dismantling of car parts to be recycled. This premium having not been established through a call for tenders, but on the basis of a calculation of the average costs incurred by the dismantling of a car wreck. As these costs vary significantly, certain companies have costs four times less than those of others, it is probable that the premium paid represents an overcompensation for certain dismantling companies. Being financed by the proceeds of a binding levy, such overcompensation would constitute State aid.

However, underlining that part of the annual proceeds drawn from this levy is used for the professionalisation of the recycling sector, the Commission feels it needs more information to assess the incentives financed, in particular its accessibility.

It remains that the doubts fed by the European executive should not caste doubt over the Dutch system for wreck dismantling, to the extent that it considers it in accordance with the provisions of the Directive on end of life vehicles adopted last year. On the other hand, the companies can only take part in another system if they have been approved by the Dutch authorities responsible for the registration of vehicle; however, the law states that only companies registered in the Netherlands can gain this approval and thus the premium. The Commission understands that the Dutch authorities are looking to prevent that companies can receive an aid without implementing recycling measures, but it doubts "whether the requirement is proportionate to the concern of preventing fraud and whether it is in line with the treaty provisions on the internal market".

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