Brussels, 10/10/2001 (Agence Europe) - In concluding the formal state aid investigation procedure launched in December 2000, the European Commission has found that aid of some EUR 13.6 million (DEM 26.6 million) to Zeitzer Maschinen, Anlagen, Geräte ZEMAG GmbH is incompatible with the common market. It therefore decided on Wednesday that Germany must recover the aid with interest since the date of its award.
ZEMAG is situated in Sachsen-Anhalt (East Germany). It develops and manufactures machinery and plant for the briquetting and processing of gypsum and lignite, power station feeders and the granulation of dung. The Commission examined the aid granted in 1997 for ZEMAG's second restructuring under the Community Guidelines on Aid for the Rescue and Restructuring of Firms in Difficulty and concluded that the criteria set out in the Guidelines had not been met. It found in particular that the long-term viability of ZEMAG could not be achieved as the restructuring plan did not adequately tackle the problem of putting the company in a position to cover all its costs in future, and that the aid was not proportionate. The Commission therefore concluded that a number of financial interventions by public authorities amounting to some EUR 13.6 million cannot be considered as being compatible with the common market. Germany must now take all necessary measures to recover from the beneficiary the aid unlawfully provided, in accordance with procedures under German law.