ANNOUNCEMENT 25 Aug 2016

On 25 August 2016, the European Commission approved a financial grant by Lithuania to finance infrastructural development at the Vilnius airport.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 25 Aug 2016 | Removal date: open ended

Financial grant

On 25 August 2016, the European Commission approved a EUR 34.7 (USD 43.38) million financial grant by Lithuania for financing infrastructural investment in the Vilnius airport. The beneficiary of the grant is a state-owned company Lietuvos Oro Uostai (LUO). The grant will be disbursed over a period of 5 years.

The total cost of investment in the project is EUR 71.4 million. The investment will support infrastructure for aircraft movement, renovation of the runway, taxiway, and aprons, construction of airfield maintenance buildings, installation of wastewater treatment plants, passenger-related infrastructure, installation of noise monitoring systems, and the upgrade of aviation security checking equipment.

In this context, the European Commission noted the: "Public financing for the airport will enable that airport to continue operating and will strengthen the airport’s position vis-à-vis other airports. Hence, the notified measure is liable to have an effect on competition and trade."

Regardless, the Commission has decided not to raise objections to the aid on the grounds that "it is compatible with the internal market pursuant to Article 107(3)(c) of the Treaty on the Functioning of the European Union."

The state aid is notified under the following objective: Sectoral development.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

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