Brussels, 21/06/2001 (Agence Europe) - On Wednesday, the European Commission decided to open a formal investigation procedure in order to determine whether State aid was granted in favour of the Terra Mítica theme park, in Benidorm (Spain).
The decision follows a complaint filed in August 1997 by the European Federation of Amusement and Leisure Parks, which presented a long series of grievances against Terra Mítica between that date and May 2000. The Commission considered that some of the complainant's objections were founded. Nonetheless, on other points, it was not able to rule out the possibility of advantages being granted in favour of the park by the public authorities. It therefore decided to open the formal investigation procedure in order to verify whether such measures do or do not constitute State aid. The points on which the Commission cast doubt are: 1) The financing of the infrastructure necessary for the operation of the park. The Commission must investigate whether the infrastructure built exclusively or principally for the park was actually financed by the private company which is the titular owner. 2) The value of the assets transferred to Terra Mítica SA by the public company Parque Temático de Alicante SA. The Commission will check whether these assets and in particular the land and the trade mark "Terra Mítica" were valued at their true price and not at a lower price, which would have been an advantage for the private company. 3) The terms of a shareholder's loan granted by the public company to the private company. The Commission will investigate whether this EUR 48.8 million loan was provided on market terms. An eventual contribution of EUR 36 million to Terra Mítica SA, which according to some information, may have been made by the Valencia tourist agency. Finally, the complainant contested a 95% reduction in the municipal tax on buildings granted to the park by the Benidorm local authority. The Commission found that the park was indeed granted this reduction, worth around EUR 500,000, and it will therefore consider whether it is compatible with the EC Treaty.