Brussels, 09/10/2002 (Agence Europe) - The European Commission has launched a formal investigation into several aid packages for a total of 52 million euro that the German government is considering granting to DaimlerChrysler AG. The plan was notified in March 2002 under regional aid and concerns an investment project in Berlin, and more specifically the production of a new 6-cylinder diesel engine and camshafts for engines. As provided for by the Community framework for State aid to the automobile sector, the Commission has to ensure that the aid is both necessary and proportional. The German government had, notably, to present an alternative site to demonstrate the project's mobility and justify the subsidies received for the choice of the Berlin site, an assisted region. The alternative site chosen by DaimlerChrysler was that of Cugir, in Romania; whereas the Commission suspects that the automobile company of not having seriously considered investing in Cugir. The Commission also has doubts as to the proportionality of the aid. The reported cost disadvantage of Berlin compared to Cugir might be lower than calculated in the cost/benefit analysis notified to the Commission. You may recall that this analysis comprises in comparing the costs that an investor would bear for carrying out a project in the region concerned with those he would have to bear for an identical project on the alternative site (here, Cugir), which allows to determine the specific regional handicaps to which the project will be exposed. The aid can neither exceed the ceiling provided for for regional aid in favour of new investments in the region, nor the regional handicap as established by the cost/benefit analysis. The German authorities now have a month to provide the Commission with all the necessary details to justify the planned aid.