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Image header Agence Europe
Europe Daily Bulletin No. 8481
Contents Publication in full By article 21 / 49
GENERAL NEWS / (eu) eu/state aid

Partial Yes to aid for Volkswagen

Brussels, 12/06/2003 (Agence Europe) - After an indepth inquiry, the European Commission has approved part of the Spanish investment aid being proposed to Volkswagen Navarra for its Arazuri (Pamplona) plant. Pursuant to the rules applying to investment in the automobile sector, the Commission has examined whether the aid proposed was needed for carrying out the project and proportionate to the regional problems that it must help resolve. Spain has proposed the Volkswagen site in Bratislava (Slovakia) as an alternative. The Commission has agreed that this is indeed an economically valid alternative and thus considers the project geographically mobile and the aid necessary for completion of the project. On the other hand, it has calculated the amount of aid needed for the project at EUR 15.21 million and has therefore only approved this amount, whereas Spain had notified aid of EUR 62 million.

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