Brussels, 10/12/2008 (Agence Europe) - On Wednesday 10 December, the Commission opened an in-depth investigation to determine whether the particulars of the sale of the Cassandra mines, owned by the Greek state, to Ellinikos Chrysos for the sum of 11 million euros constituted illegal state aid. In particular, the Commission is concerned that the sale may have taken place for a price lower than the market value. European Competition Commissioner, Neelie Kroes said that she wanted to "make sure that no hidden advantage was granted to Ellinikos Chrysos at the expense of Greek taxpayers and that Greece acted like any private vendor would have when selling these public assets".
In July 2007, the Commission received a complaint that Greece had allegedly granted legal aid to the mining company Ellinikos Chrysos in 2003, when it sold it the public Cassandra mines 11 million euros. The Cassandra site produces gold and copper. The Commission came to the initial conclusion that Greece had sold the Cassandra mines without carrying out an open, transparent and unconditional call for offers, at a price considerably below market value. In June 2004, barely 6 months after the sale, an expert from the global mineral industry estimated the market value of the assets of the Cassandra mines at 408 million euros, which is more than 35 times the actual sale price. In addition, the sales contract provided for tax exoneration and a reduction on administrative costs in favour of Ellinikos Chrysos.
Interventions of the public authorities in companies exercising economic activities can, under Community law, be considered as not constituting state aid when it is done under acceptable conditions and in the way a private operator guided by market criteria might act. In the framework of its investigation, therefore, the Commission will consider whether the state acted as an operator on the market economy when it sold the Cassandra mines. (O.L./trans.fl)