91997E2766

WRITTEN QUESTION E-2766/97 by Christoph Konrad (PPE) to the Commission (1 September 1997)

Subject: State aid from the Kingdom of Belgium to the Forges de Clabecq steel company

1. On 18 December 1996 the Commission ruled that subsidies amounting to BEF 3 billion from the Kingdom of Belgium to the Forges de Clabecq steel company were incompatible with the common market. Belgium was required to reclaim the subsidies within two months of the decision. Does the Commission know whether repayment has duly taken place? If repayment of the subsidies should prove unenforceable, is the Commission prepared to examine whether the distortion of competition caused by subsidies must not be alleviated by a reduction in capacity?

2. On 13 June 1997 the Belgian daily Le Soir reported that in the possible sale of Forges de Clabecq to a private company the Walloon Region was prepared to grant the company an extra BEF 1.8 billion. Does the Commission find this further subsidy incompatible with the steel aid code, and what steps does it intend to take to bring about the necessary reduction in capacity?

3. Will the Commission be treating the most recent events concerning Forges de Clabecq as a reason for requiring the Kingdom of Belgium to suspend payment of all funds to that company?

Answer given by Mr Van Miert on behalf of the Commission (2 October 1997)

1. On 19 December 1996, Forges de Clabecq went into bankruptcy. Therefore, when requested to recover the aid paid to the company, the Belgian authorities registered with the bankruptcy authorities a claim corresponding to the amount to be recovered.

2. The Commission has not yet received notification of the joint participation of the Walloon Region in the acquisition of Forges de Clabecq. If such information is received, the Commission will assess it thoroughly in order to ensure that no new aid is involved in any possible form. As for an eventual reduction in capacity, there is no situation in which aid could be considered compatible with the steel aid code against a reduction in capacity unless such aid aimed at facilitating the partial or total closure of a company.

3. The Commission has no reason to believe that the Belgian authorities will not comply with their notification obligations. It will however take all appropriate measures to ensure that the Community rules are respected.