 |
 |
||||||
[June 2002]
Spanish Government Must Recover Substantial Payments Made to Ceramic Group
The European Commission has ordered the Spanish Government to recover "billions of Pesetas" in state aid that the EC claims Madrid illegally paid porcelain manufacturer Grupo de Empresas Alvarez (GEA), of Vigo, Pontevedra, although it has reportedly asked the Spanish Government to calculate exactly how much money is involved.The EC concluded that restrictions on the payment of further state aid by Spain to GEA were circumvented, namely that no new subsidies should be handed out while restructuring - that earlier approved aid payments had helped to fund - was carried out.
An EC statement said: "GEA was allowed to continue trading without paying any social security contributions for several years. This is considered as new aid by the Commission which cannot be authorised. Spain will have to quantify the amount of aid granted and recover what it can".
The EC action followed complaints by GEA's competitors about favourable treatment granted to the company regarding social security and tax debts.
ENDS