ANNOUNCEMENT 28 Jul 2015

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

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Press release from 28.07.2015 by the EC:
http://europa.eu/rapid/press-release_IP-15-5446_en.htm

Letter from the EC to France to start the investigation on 01.10.2014 (in French):
http://ec.europa.eu/competition/state_aid/cases/254582/254582_1601335_39_2.pdf

Letter from the EC to France re. the conditional decision on 28.07.2015 (in French):
http://ec.europa.eu/competition/state_aid/cases/254582/254582_1691503_253_2.pdf


Inception date: 28 Jul 2015 | Removal date: open ended
Still in force

State loan

 On 28 July 2015, the European Commission approved state aid worth 125 million EUR to French chlorochemicals and PVC producer Kem One SAS.
 
The state aid includes a loan of 30 million EUR from the Economic and Social Development Fund, a grant of 15 million EUR and repayable advances worth 80 million EUR. As the company is currently facing financial difficulties, the aid may also include a write-off of tax debts and social security payments.
 
The Commission started a procedure back in October 2014 to assess if the state aid at hand was compatible with the single market. The EC concluded in its assessment that the aid does constitute an economic advantage to the entity (art. 212, letter from the EC to France, 28.07.2015) and "threatens to distort competition between operators in the PVC sector and in the market for the production of chlorine and caustic soda" (art. 238; own translation). However, it argued the restructuring plan for Kem One SAS was satisfactory and the company provided a sufficient contribution to the restructuring.
 
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.
 

AFFECTED SECTORS

 
Inception date: 28 Jul 2015 | Removal date: open ended
Still in force

Financial grant

 On 28 July 2015, the European Commission approved state aid worth 125 million EUR to French chlorochemicals and PVC producer Kem One SAS.
 
The state aid includes a loan of 30 million EUR from the Economic and Social Development Fund, a grant of 15 million EUR and repayable advances worth 80 million EUR. As the company is currently facing financial difficulties, the aid may also include a write-off of tax debts and social security payments.
 
The Commission started a procedure back in October 2014 to assess if the state aid at hand was compatible with the single market. The EC concluded in its assessment that the aid does constitute an economic advantage to the entity (art. 212, letter from the EC to France, 28.07.2015) and "threatens to distort competition between operators in the PVC sector and in the market for the production of chlorine and caustic soda" (art. 238; own translation). However, it argued the restructuring plan for Kem One SAS was satisfactory and the company provided a sufficient contribution to the restructuring.
 
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.