Brussels, 15/01/2002 (Agence Europe) - In a decision adopted in Strasbourg on Tuesday, the European Commission considers that the Crédit Mutuel was over-compensated by the French State in relation to the management costs for the savings account ("livret bleu") entrusted to it. This over-compensation runs counter to European rules on State aid and the amounts should, therefore, be paid back to the French government. The Commission notes that the decision does not target the account itself, which is the product of detaxed savings to the direct benefit of the consumer, but the over-compensation that it generated. In compliance with the rules set out in the EC Treaty, if the State is entitled to grant to any party compensation for a public service mission entrusted to that party, then the compensation must not exceed the total net costs entailed for accomplishing that mission.
Organised in the form of a cooperative society, the Crédit Mutuel is present over the whole of French territory with some 3300 agencies. In 1975, the French government had decided to encourage public savings by distributing a tax-free savings income with attractive remuneration. Part of the funds collected through the intermediary of this product was intended for investment in projects of general economic interest such as development of the social fund, a mission comprising both costs and benefits. In the present case, the costs consisted in the distribution of the savings product to the public, without cost for the consumer, and the investment of part of the fund in local authorities and other public bodies. Compensation, on the other hand, included the exclusive right to collect funds and manage the system, as well as a commission for this service provided on behalf of the State. Following an inquiry opened in 1997, the European Commission noted that, between 1991 and 1998, the commission paid to the Crédit Mutuel for its public service mission exceeded net costs. More especially, over-compensation accounted for FF 1074 million (EUR 164 million), to the Crédit Mutuel's advantage, by providing it with additional funds that its rivals did not receive, and thus giving it a considerable market advantage. Given the existence of overcompensation for the years 1999 and 2000 also, and the interests that the Crédit Mutuel will have to pay until the date when the funds are recovered by the French government, the total sum to be reimbursed should amount to around EUR 300 million. The French government is invited to inform the Commission, within the two months following reception of this decision, of measures taken to comply.