IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 26 Nov 2009 | Removal date: open ended
Still in force

Bailout (capital injection or equity participation)

On 30 December 2008, Greece notified a restructuring aid for Kalofolias S.A. By letter of 26 November 2009, the Greek authorities submitted the final version of the restructuring plan.
 
Kalofolias S.A is a large company, established in 2000 by way of the merger of several pre-existing firms, which belonged to the Kalofolias family (whose members still hold 100% of the company). Kalofolias S.A is active in the markets of press (financial newspaper "Express", 55% of annual turnover in 2008), printing services (27% of annual turnover in 2008), organization of expositions and conferences (11% of annual turnover in 2008) and e-info services ("Kapa-tel", sms, wap & mms, 7% of annual turnover in 2008).
 
The Greek authorities indicate that the overall costs of the restructuring of EUR 14.2 million will be funded by State aid of EUR 7.1 million and an own contribution of EUR 7.1 million. The State aid consists of a direct grant.
 
The Commission concluded that the measure contains state aid and gave the following assessment:
 
"The notified measure is to be granted by the Ministry of Economy and, therefore, involve State resources. The measure confers an economic advantage to Kalofolias S.A. in the context of its restructuring by relieving it from the costs it would otherwise have to bear under normal market conditions. Since the measure is aimed at a single company, it is considered as selective. By favouring a single firm, the measure threatens to distort competition in relation to other undertakings that do not receive the aid. Finally, and considering that the measure concerns an undertaking involved in activities subject to trade between Member States, there is a risk that the aid could affect that trade." (par. 26 of the letter from the European Commission to Greece - Brussels, 27.1.2010 C(2010) 180)
 
However, the Commission has decided to consider the aid compatible with the Treaty on the Functioning of the European Union.
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
 
 

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

322 Books, in print
4901 Printed books, brochures, leaflets and similar printed matter, whether or not in single sheets.
490110 In single sheets, whether or not folded
490191 Dictionaries and encyclopaedias, and serial instalments thereof
490199 Other
4903 Children's picture, drawing or colouring books.
490300 Children's picture, drawing or colouring books.
323 Newspapers & periodicals, daily, in print
4902 Newspapers, journals and periodicals, whether or not illustrated or containing advertising material.
490210 Appearing at least four times a week
324 Newspapers & periodicals, other than daily, in print
4902 Newspapers, journals and periodicals, whether or not illustrated or containing advertising material.
490290 Other
325 Printed maps, music, cards, & pictures
4911 Other printed matter, including printed pictures and photographs.
491191 Pictures, designs and photographs
326 Stamps, banknotes, stock certificates, brochures & leaflets
4911 Other printed matter, including printed pictures and photographs.
491110 Trade advertising material, commercial catalogues and the like
491199 Other

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