Brussels, 05/06/2002 (Agence Europe) - The Greek company, Hellenic Shipyards (shipbuilding and repair for military and civilian vessels), has been authorised to receive aid of EUR 29.5 million, to allow it to cover the cost of early retirement for some 200 workers. The Commission, however, seeks assurance that other measures granted to the same company meet the criteria of the regulation on aid to shipbuilding. It has opened an investigation on this.
In July 2001, Greece notified plans to grant aid to Hellenic Shipyards in connection with planned privatisation of the company. The planned aid concerned several kinds of measures in the form of incentives to encourage workers to voluntarily leave the company, and also tax advantages linked to losses suffered in the past by the company. Concerning the measures for encouraging early retirement, the Commission notes that 75% of the employees concerned work in the military section of the yard which does not come under the regulation on aid to shipbuilding. EUR 29.5 million have been released for the 200 employees in the civil section of the yard, and the Commission has decided to authorise this amount. The regulation on aid to shipbuilding authorises measures intended to cover the normal costs resulting from the partial closure of the yards, on condition that the resulting reduction in capacities is of a genuine and irreversible nature. Concerning the measures whereby Hellenic Shipyards would receive tax benefits based on old losses, the Commission has doubts as to whether this will not constitute operating aid and thus be incompatible with the common market. It has therefore decided to open a detailed inquiry.