SPAIN STATE AID
October 1st, 2004
Keith Nuthall
THE EUROPEAN Court of Justice (ECJ) has overturned a European Commission order that Spanish synthetic fibres producer Sniace SA, of Cantabria, repay state aid of Pesetas 8 billion (Euro 48 million) it received in the 1990's. This was paid via the rescheduling of debts to Spain's social security fund and de facto low interest loans from its wage guarantee fund Fogasa. Judges ruled the Commission "made a manifest error of assessment" in concluding this assistance to a struggling company broke European Union (EU) state aid rules.
THE EUROPEAN Court of Justice (ECJ) has overturned a European Commission order that Spanish synthetic fibres producer Sniace SA, of Cantabria, repay state aid of Pesetas 8 billion (Euro 48 million) it received in the 1990's. This was paid via the rescheduling of debts to Spain's social security fund and de facto low interest loans from its wage guarantee fund Fogasa. Judges ruled the Commission "made a manifest error of assessment" in concluding this assistance to a struggling company broke European Union (EU) state aid rules.
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