Brussels, 13/08/2002 (Agence Europe) - The European Commission has informed the Swedish and Portuguese governments that its review of state aid granted to Mabor-Continental, the Portuguese subsidiary of the tyre manufacturer Continental, has provided no indication of a violation of EU competition rules. Based on information provided by the Portuguese government (explaining that the company is to receive a subsidy of around € 10 million and tax reductions in the same amount), the Commission concluded that the aid in question is in compliance with aid schemes previously authorised by the Commission and well below the allowed regional aid ceiling. Moreover, the aid measures are below the threshold of compulsory notification. Coming on top of the shutdown of the Continental tyre manufacturing plant in Gislaved (southern Sweden), planned for this summer, the aid scheme had caused concern among Swedish authorities, who wondered whether Community rules on state aid were being observed and whether Continental was not simply relocating production to Portugal due to the financial and fiscal benefits promised by the Portuguese government.