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Europe Daily Bulletin No. 8062
Contents Publication in full By article 12 / 35
GENERAL NEWS / (eu) eu/transport

Commission should examine Belgian aid to Sabena following its being placed into receivership from point of view of aid to companies in difficulty

Brussels, 03/10/2001 (Agence Europe) - The European Commission should examine Belgian aid to Sabena from the angle of aid to company restructuring. After Swissair had announced that it was not going to participate in the re-capitalisation of the Belgian airline company, Belgian Prime Minister Guy Verhofstadt announced on Wednesday that Sabena had asked to be placed into receivership. The European Commission, which was to decide on the 400 million euro re-capitalisation of Sabena by the Belgian State (40%) and Swissair (60%), from the point of view of State aid to airline companies, should therefore alter its approach. It is indeed guidelines on aid to companies in difficulties that should now apply. These rules allow for treasury aid to the restructuring of a company on condition: 1) of being justified for serious social reasons; 2) being accompanied by a restructuring or liquidation plan (unless the aid is paid back in full); 3) only concern the amount necessary for the company to operate (wagers, current supplies). This aid is only authorised for a limited amount of time, in which the Commission examines the viability of the company and the restructuring plan.

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