Brussels, 20/12/2006 (Agence Europe) - Following an in-depth investigation, the European Commission concluded, on 20 December, that restructuring aid to the Polish motor vehicle manufacturer, Fabryka Samochodow Osobozych (FSO), is compatible with EC Treaty State aid rules provided that certain conditions are met. The Commission found that aid is limited to the minimum necessary and that the FSO restructuring plan is sufficient to restore the firm's long term viability. It also considers, however, that, without appropriate safeguards, the aid could lead to undue distortion of competition. As the car manufacturing sector has surplus capacity in the EU, the Commission feels aid could shift the difficulties and the burden of adjustment to other firms and workers in other Member States. In order to limit such distortion, the Commission's decision to authorise aid is therefore subject to a production and sales threshold being maintained (150,000 motor vehicles annually), which will limit the production of the plant and its ability to bid for additional licence agreements until February 2011. (ol)