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Europe Daily Bulletin No. 9520
Contents Publication in full By article 19 / 36
GENERAL NEWS / (eu) eu/state aid

In-depth investigation opens into possible aid in privatisation of Romanian car producer Automobile Craiova

Brussels, 10/10/2007 (Agence Europe) - On 10 October, the European Commission decided to open a formal investigation into possible aid granted in the context of the privatisation of Automobile Craiova (former Daewoo Romania) and its sale to Ford Motor Company in September 2007. The Commission has also asked Romania to suspend the granting of any unlawful aid until the Commission takes a decision on its compatibility. The Romanian authorities attached specific conditions to the privatisation, in particular the achievement of a minimum production level of 200 000 cars in the fourth year after the privatisation, the continuation of the current activity for four years and the maintaining of all former employees of Automobile Craiova and Daewoo Romania. The Commission has to verify whether these conditions resulted in a lower sales price than if the privatisation had been unconditional. If this is the case, the privatisation could involve elements of state aid. In addition, Romania seems to have changed the terms of the privatisation at a later stage of the process, which might have involved additional aid elements. On Wednesday the commissioner for competition, Neelie Kroes, said: "The Commission fully supports Romania in its privatisation policy. However, we have to ensure an open and transparent privatisation process free of unlawful state aid. In this particular case, I have concerns that the state aid rules might have been breached." The opening of an investigation gives interested parties the possibility to comment on the measures under examination. It does not prejudge the outcome of the procedure. (ol)

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