Brussels, 05/07/2005 (Agence Europe) - On Tuesday, the European Commission decided to approve French State aid to public rendering companies in 2003 (EUR 325 million for transporting and destroying fallen stock and slaughterhouse waste banned from human consumption). However, as in December 2004, it launched a formal investigation into rendering tax exemptions conferred on a number of meat businesses (EUROPE 8849).
The Commission concludes that French State aid for rendering measures in 2003 complies with the EU's guidelines concerning EU State aid for epizootic screening and slaughterhouse waste. The aid will no longer be financed by the rendering tax but by funding made available by the French Ministry of Agriculture, the Commission explains.
The Commission nonetheless has serious doubts about the compatibility of such measures with Community law on tax exemptions for meat purchases by certain businesses (exemption is granted to businesses with sales of less than EUR 381 122 in the previous calendar year).