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Image header Agence Europe
Europe Daily Bulletin No. 9424
Contents Publication in full By article 32 / 49
GENERAL NEWS / (eu) eu/state aid

Commission endorses loan granted to Spanish lollipop producer Chupa Chips, but vetoes subsidies

Brussels, 10/05/2007 (Agence Europe) - On 10 May, the European Commission closed an in-depth investigation, which concluded that a number of measures taken to help the Spanish confectionary producer Chupa Chups S.A., in particular a €35 million loan granted by a financial entity belonging to the Catalonian Region in 2003, did not constitute state aid because the conditions under which they were granted would have been accepted by a market economy investor (see EUROPE 9119). The Commission found, however, that €900,000 of subsidies for the company did constitute illegal state aid. The company will have to repay €100,000 of this sum (the Spanish authorities having confirmed that the remaining €80,000 have not yet been paid out). (cd)

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