Brussels, 25/10/2005 (Agence Europe) - For the first time in recent years, the Commission has called upon a Member State immediately to suspend the granting of State aid before having taken a final decision after an in-depth investigation. It has serious concerns that Greek legislation is not in line with the provisions of the treaty instituting the Community on State aid and is likely to lead to competition distortions within the internal market. It may call upon Greece to recover the aid paid out to businesses, with interest.
The law 3220/2004 authorises certain Greek businesses active in several sectors (textiles, automotives, energy, mining, intensive agriculture and fishing, international trade and tourism) to deduct up to 35% of profits made in 2003 in 2004 from their tax base. These businesses must use the tax-exempt revenue to pay for outgoings such as construction, extensions and the modernisation of factories and other buildings, the purchase of new equipment or vehicles, training, studies and the drafting or tabling of patents. This law has never been notified to the European Commission.