Brussels, 20/12/2007 (Agence Europe) - Following complaints from some of their competitors, the European Commission decided, on Wednesday 19 December, to launch a formal investigation into a number of financial flows and transfers which may constitute state aid to Olympic Airways Services SA and Olympic Airlines SA. The investigated aid payments are believed to have been made to both companies after the period covered by the Commission's negative decision of September 2005, which found that the two companies had received illegal state aid (see EUROPE 9027). The Commission has called on Greece to provide information relevant to its investigation.
The Commission has identified four separate issues: - continued forbearance on the part of the Greek authorities in relation to tax and social security debts since December 2004; - the financing of some of Olympic Airlines aircraft leases since May 2005; - payments made to Olympic Airways Services in respect to a number of arbitration panel decisions against Greece and which may involve overcompensation; - the special creditor protection granted by law to the two companies in 2005 which ensures that no legal action may be taken against either company by any private creditor. Greece has one month to respond to the Commission and provide the required information. (A.By.)