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Image header Agence Europe
Europe Daily Bulletin No. 9181
Contents Publication in full By article 25 / 39
GENERAL NEWS / (eu) eu/state aid

Investigation into planned aid for General Motors Belgium

Brussels, 27/04/2006 (Agence Europe) - On Wednesday, the European Commission launched an in-depth investigation to establish whether the €5.33 million grant the Flemish Region intends to give for supporting training at General Motors Belgium in Antwerp is compatible with the EC Treaty rules on state aid. EU Competition Commissioner Neelie Kroes said: “In the context of the Lisbon agenda, the Commission strongly supports training activities. However, there is a risk that this aid actually covers training costs that the company would have incurred anyway, even without aid.” Belgium notified in December 2005 the intention of the Flemish region to grant €5.33 million for a training programme costing € 19.95 million as part of an investment programme in the period 2005-2007 for a total value of €127 million, which will allow the production of an additional version of the Astra and a doubling of the press activity. In the Commission's opinion, applying the rationale of the new regime, the exemption for both Belgian and foreign CIUs in respect of units marketed abroad stems from the basic rule of that regime, as does taxation of both Belgian and foreign CIUs as regards units marketed in Belgium. Accordingly, this exemption does not result from a selective exception to the basic rule and so does not constitute state aid.

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