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[December 2002]
EC Demands Recovery of Illegal Grant to Refractories Concern
The European Commission has ordered Spain's wage guarantee fund to recover 545,000 euro in debt owed by the specialist heat resistant ceramics manufacturer Refractarios Especiales SA.This move came after the Commission concluded that an earlier waiving of this due payment was an illegal government grant. The EC has the power to order the recovery of such subsidies under European Union state aid rules designed to ensure that European companies operate on a level playing field in Europe.
In this case, however, the EC did approve some preferential debt rescheduling arrangements agreed by Refractarios Especiales SA with Spain's tax and social security authorities.
ENDS