Brussels, 27/07/2001 (Agence Europe) - The European Commission has adopted two closely related decisions concerning the German company in liquidation, Erba Lautex GmbH, and its legal successor, Neue Erba Lautex GmbH (NEL). During this double examination, both legal entities were considered as an economically unique structure. The Commission has, on one hand, opened formal review proceedings on new aid of EUR 7.83 million, of which EUR 4.76 million is granted as alleged rescue aid and EUR 3.07 million corresponds to a capital increase. As Germany had not notified this aid prior to its allocation, it is therefore considered illegal. The Commission, on the other hand, has serious doubts about its compatibility.
Furthermore, the European Executive has decided to take action against Germany at the European Court of Justice for failure to implement its negative decision of July 1999 concerning aid of EUR 61.36 million, granted to Erba Lautex, which has since gone bankrupt. The Commission doubts that Germany took all the illegal aid into account in the estate of bankruptcy and therefore considers that it did not execute its decision which ordered all incompatible aid to be recovered, allowing Erba Lautex to continue its business through NEL. This has resulted in persisting competition distortion.