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Image header Agence Europe
Europe Daily Bulletin No. 8310
Contents Publication in full By article 13 / 35
GENERAL NEWS / (eu) eu/state aid

Commission opens detailed investigation into aid to BMW

Brussels, 02/10/2002 (Agence Europe) - Aid totalling EUR 40.25 million that the Austrian authorities plan to grant the BMW factory in Steyr (Austrian region of Oberösterreich) may not meet the criteria established by the existing Community framework on State aid to the motor industry. The Commission has opened a detailed investigation into the project, notified last April by the Austrian authorities under regional development aid, as well as aid to training, research and development, innovation and environmental protection. The main doubts of the Commission relate to the proportionality of the aid. At this stage, it considers that the regional handicap of Steyr, highlighted to justify the level of aid, is not clearly established. Furthermore, the Commission considers at this stage that aid to training, amounting to EUR 6.86 million, is excessive. Finally, the aid foreseen within the framework of aid to research and development, foreseen for the production of new diesel engines, as well as that foreseen under aid to innovation and environmental protection, would not be compatible with the Community framework for the motor industry.

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