Brussels, 08/05/2001 (Agence Europe) - After three years on investigations, the European Commission on Tuesday approved part of the aid France paid to Brittany Ferries for the restructuring of the shipping company between the United Kingdom, France, Ireland and Spain.
The Commission considered that an initial slice of aid of 48 million euro (FF 316 million), linked to a restructuring programme, had in fact enabled to reestablish the company's sustainable viability, as its net results should be positive in 2003. It did, however, decide not to approve a further slice of 12 million euro (FF 80 million) in aid which would have led to distortions to competition, as the company is now viable.
The restructuring programme comprised the resizing of the company's activities, the reorganisation of its services, the implementation of a social plan, and a reduction in its operating costs. On the basis of Community guidelines for State aid for the rescue and restructuring of companies facing difficulties, the European executive took account of the "economic and social stakes", as well as the company's role in the regional development of the Atlantic Arc, notably in Brittany and Lower Normandy in France, Plymouth and Poole in the United Kingdom, and Santander in Spain.
In addition, the Commission observed that: 1) "any aid element relating to the inappropriate absence or adequate remuneration of the guarantee of FF 10 million paid in 1992 constitutes operational aid which should be recovered once the exact amount of the aid has been established"; 2) "Brittany Ferries' banking relations with Credit Agricole are of a private nature and cannot therefore constitute aid"; 3) "certain reductions in port fees in favour of Brittany Ferries have been made in accordance with market practices and cannot constitute State aid".