ANNOUNCEMENT 28 Dec 2009

In December 2009, the government of Spain 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 Spain - Brussels, 26.01.2011 C(2011)264 final. Available from : < http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_N3_2010 >


Inception date: 28 Dec 2009 | Removal date: 27 Dec 2013
Still in force

State loan

On 26 May 2009, the Spanish authorities pre-notified their plans to grant interest-free loans to AERNNOVA AEROSPACE S.A. (hereinafter "AERNNOVA") for development of the horizontal tail plane fixed parts and elevator for Airbus' new generation aircraft family A350 XWB.
 
The Spanish authorities intend to grant an interest-free loan without collateral to AERNNOVA. The nominal loan amount will correspond to 75 % of the total eligible costs, resulting in a loan of EUR 129.2 million.
 
The commission found that the measure constitutes State aid within the meaning of Article 107 (1) TFEU and gave the following assessment:
'The notified loan will be provided by the Spanish authorities and will result in foregone interest revenues and it is thus funded from State resources. The loan is provided to a single beneficiary, namely AERNNOVA, and is therefore selective. By relieving AERNNOVA from R&D costs which should otherwise have been borne by the company, the measure confers an advantage on AERNNOVA. The beneficiary is active in the sector of manufacture of air and spacecraft and related machinery, which is open for trade between Member States. The aid could improve the financial situation and enhance the market position of AERNNOVA and thereby distorts or threatens to distort competition and affects trade between the Member States.' (par. 35 of the letter from the EC to Spain - Brussels, 26.01.2011 C(2011)264 final)
 

The Commission considers the aid compatible with the TFEU on the basis of Article 107(3)(c) thereof and has accordingly decided not to raise objections to the notified measure.
 
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