Brussels, 11/07/2001 (Agence Europe) - The European Commission has decided to terminate by negative decisions its investigation of six tax aid schemes in the Basque Provinces and one scheme in Navarre. The examination opened in July 1999. Three schemes concern tax aid granted in the form of a tax credit of 45% of the amount of investment exceeding EUR 15 million (2.5 billion pesetas) in Alava, Guipúzcoa and Vizcaya. According to the Commission, the tax credit granted had the character of investment aid, being subject on one hand to investment of more than 2.5 billion pesetas and, on the other, to a percentage of the investment. The Commission then examined whether these schemes complied to the Community rules in force for this kind of aid and concluded with a negative opinion. The four other schemes concern "tax holidays for the year 1996" granted in these same provinces (Alava, Guipúzcoa and Vizcaya) as well as in Navarre to newly created businesses. The latter benefit from substantial tax relief during the first four financial years when they make a profit. According to the Commission, the tax measures enter into the category of operating aid, as they aim to free beneficiary companies from costs (tax charges) that they would have to bear in the context of their normal activities. The Commission examined whether such measures complied with the Community rules and concluded, here also, in the negative. All these schemes have been declared incompatible with the common market, and so the Spanish authorities are now forced to abolish them, suspend the payment of any balance of aid not yet paid, and recover the aid already paid out.