In January 2015, the European Commission approved a state aid by the Slovakian government to a domestic fertiliser producer.



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Letter of the EC to Slovakia, Brussels 06.01.2015:

Inception date: 01 Jan 2018 | Removal date: 30 Dec 2027

Tax or social insurance relief

On 6 January 2015, the European Commission approved state aid to the Slovakian company Duslo, a "major European producer of nitrogen and compound fertilisers and a global supplier of rubber chemicals" (letter from the EC to Slovakia, par. 6). The company is a subsidiary of the Czech Agrofert Group.
With the approved state aid of 58.56 million EUR, the company plans to build a new production unit with a new ammonia production process. Despite the project having already started and being complete by June 2017, the aid will be distributed through a tax rate reduction (corporate income tax relief) over the course of ten years, beginning in 2018. This corresponds to the year where the full production of the ammonia plant is expected (par. 15).
The Commission decided that "the contribution of the aid to regional development outweighs its negative effects on trade and competition. Accordingly, the notified aid measures can be considered compatible with the internal market".
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.