Brussels, 17/12/2008 (Agence Europe) - On Thursday 11 December, the Commission gave the go-ahead to several state aid projects.
Poland/BVG - Public funding of over €47 million was approved for an investment project by BDN Sp. z o.o. Sp.k. belonging to BVG Medien Beteiligungs GmbH ("BVG") and linked to the Heinrich Bauer Verlag. The investment is intended to fund a new rotogravure printing plant in Nowogrodziec, south-west Poland. The Polish region of Lower Silesia is an area with high unemployment, and is, therefore, eligible for regional aid. The Commission had to be given separate, individual notification of the investment project, because of its great size. In a press release issued last Thursday, the Commission said that competition rules had been respected, particularly since the production capacity created by the project was found to remain below 5% of the size of the relevant markets.
Germany/Masdar - The Commission authorised €28 million of regional investment aid, which the German authorities intend to grant to Masdar for the production of thin-film solar modules in Thüringen, Germany. The project involves investments of €143 million and is expected to create at least 184 new jobs. The Commission found, in particular, that the measure would not cause Masdar to significantly increase its share of a rapidly growing market. Thüringen is eligible for regional aid because of the high level of unemployment in the region.
France/Iseult-Inumac - Finanacial support granted by France to the Iseult-Inumac research and development programme was also approved by DG Competition. The programme is being implemented by a consortium of six partners led by Guerbet, a private holding specialised in contrast agents for medical imagery. The aim is to improve high field magnetic resonance imaging (MRI), with a view to a better diagnosis, follow up and treatment of diseases like Alzheimer's disease, strokes and brain tumours. The project will be co-financed by France and Germany - the French share is €109 million, including €54.5 million in aid. The Commission considered that the programme remedies certain medical research market failures, given the uncertainty of long-term prospects for viability, which would discourage investors whose interests were purely commercial.
Netherlands/SNS REAAL - The European Commission also approved an emergency recapitalisation worth €750 million that the Dutch authorities intend to grant to SNS REAAL NV. The Commission found the measure to be in line with its Guidance Communications on state aid to overcome the current financial crisis and on support for fundamentally sound financial institutions, as was the case here. In particular, the measure is limited in time and scope, requires an adequate remuneration and provides safeguards that the Commission finds satisfactory to minimise distortions of competition. See press release IP/08/1951 for further details on aid arrangements.
Polish aid to Dell under investigation - The Commission announced last Thursday that it was investigating €52.7 million worth of aid for a new production factory which Dell Products Poland (a company wholly owned by Dell Inc., a US-based computer manufacturer). In a press release issued the same day, the Commission said it had doubts as to its compatibility with the rules on regional aid for large investment projects. The investigation will look closely at the definition of the market for the products to be made at the plant, the extent of the increase in production capacity resulting from the investment and the extent to which demand for these products is in decline. The opening of the new factory would, according to Dell, create up to 3,000 jobs in the £ódŸ region, which is eligible for regional aid. The costs to be taken into account for the calculation of the aid amount to €189.58 million and the proposed aid amount is €52.73 million. (C.D./transl.rt)