ANNOUNCEMENT 13 Feb 2009

In February 2009, the government of Austria announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



the letter from the EC to Austria - Brussels, 14.04.2009 C (2008) 2967. Available from < http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_N81_2009 >


Inception date: 01 Mar 2009 | Removal date: open ended
Still in force

Bailout (capital injection or equity participation)

 On 13 February 2009, Austria notified a rescue aid destined to the firm Eybl Austria Gmbh ("Eybl Austria"), a company active in the manufacturing of textiles.
 
The entity receiving the rescue aid is the company Eybl Austria, employing 405 persons located in Krems and Gmünd, both in Niederösterreich. Eybl Austria is a limited liability company and is a 100% subsidiary of the Eybl International AG. Eybl Austria itself has four subsidiaries, Eybl Deutschland GmbH, Eybl Development GmbH, Eybl Automotive Romania s.r.l. and Eybl Hungaria Textilipari Kft.
 
The notified rescue aid measure at stake is a rescue by the Land Niederöstereich for a loan of EUR 2 million to Eybl Austria to cover a loan for its current liquidity needs.
 
The Commission found that the present loan guarantee in favor of Eybl Austria constitutes State aid pursuant to Article 87(1) of the EC Treaty and gave the following assessment:
 
"The loan guarantee of EUR 2 million is provided by the Austrian Land Niederösterreich and involves therefore state resources. It will provide Eybl Austria - a firm in difficulty - with funds at more favourable terms than those it could obtain under normal market conditions. Therefore, the firm benefits from an advantage it would not be able to obtain under normal market conditions. Furthermore, as the company sells its products to numerous international automotive producers, the measure improves the position of the beneficiary in relation to its competitors and it consequently distorts competition and affects trade between Member States." (par. 17 of the letter from the EC to Austria - Brussels, 14.04.2009 C (2008) 2967).
 
The Commission, however, decided to consider the aid compatible with the common market.
 
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 SECTORS