Brussels, 11/04/2002 (Agence Europe) - The European Commission has decided that aid by Germany of some € 34.26 million to SKL-Motoren- und Systemtechnik GmbH (SKL-M) to be incompatible with the criteria set out in the Community Guidelines on Aid for the Rescue and Restructuring of Firms. The Commission has thus requested that Germany take measures for recovering of the aid granted to SKL-M as well as that to the investor Motoren- und Turbinen-Union Friedrichshafen GmbH (MTU), which might have benefited up to the amount of € 2.71 million. The Commission opened a formal investigation in July 2000 into the aid granted in 1997-1999 for SKL-M's second restructuring, after its first restructuring to LINTRA Beteiligungsholding GmbH failed in 1996. The submitted restructuring plan envisaged that MTU, which develops and manufactures engines for ships and the energy sector, would take over the assets or the shares of SKL-M. The Commission found that the long-term viability of SKL-M could not be achieved as the investor MTU never made a clear commitment to take over SKL-M. Thus the company encountered losses since 1997 and insolvency proceedings were opened in September 2000. The Commission also found that the aid in question was not in proportion to the restructuring costs and benefits and that the restructuring plan did not foresee enough measures as to offset adverse effects on competition by the aid. The Commission concluded that none of the criteria set out in the Guidelines had been met in the granting of aid and has therefore asked Germany to recover the aid from the beneficiaries.