ANNOUNCEMENT 27 Nov 2015

In November 2015, the government of Portugal announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



SA.38831, Letter from the EC to Portugal, Brussels 01.10.2014
http://ec.europa.eu/competition/state_aid/cases/254583/254583_1601449_27_2.pdf

EC press release on the approval, 27.11.2015
http://europa.eu/rapid/press-release_MEX-15-6190_en.htm


Inception date: 30 Apr 2014 | Removal date: open ended
Still in force

Financial grant

On 27 November 2015, the European Commission approved state aid provided to Volkwagen Autoeuropa in Portugal.
The aid was initially awarded on 30 April 2014 and was distributed in the form of a grant worth 36.15 million EUR. It will be used for the introduction of a new car production technology in Volkswagen's plant in the Setubal region.
According to the Commission, "The financial support will be given for an investment in the car sector, which is subject to intensive trade between Member States, and will partially replace supplies of intermediate goods from other Member States. Therefore, the measure affects trade between Member States. The favouring of Autoeuropa and its production by the Portuguese authorities means that competition is distorted or threatened to be distorted".
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