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Image header Agence Europe
Europe Daily Bulletin No. 9611
Contents Publication in full By article 11 / 31
GENERAL NEWS / (eu) eu/state aid

€27 million must be recovered from Automobile Craiova

Brussels, 27/02/2008 (Agence Europe) - At the end of its in-depth investigation begun in October 2007, the Commission has requested Romania recovers €27 million in unlawful aid awarded to Automobile Craiova (trading in car spare parts, EUROPE 9520).

The Commission investigation demonstrated that privatisation of Automobile Craiova resulted in a lower sales price. The value of its participation of 72.4 % held by the Romanian state and bought out by Ford was estimated at €84 million.

Consequently, Romania, in imposing several non-economic conditions on the tender, forewent €27 million of revenue. Since the conditions ensured the achievement of a certain production, employment and investment level, the conditional tender gave an economic advantage to Automobile Craiova and Daewoo Romania. This advantage was financed by the revenue that the state foregoes through the sale.

The granting of the aid did not meet the criteria for compatible restructuring aid or compatible regional aid. The Commission has therefore ordered a full recovery of the aid. (C.D.)

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