91998E3003

WRITTEN QUESTION E-3003/98

by Gerhard Hager (NI) to the Commission

(8 October 1998)

Subject: Application for State aid by the firm of Anker

An application for support from the firm of Anker (industrial bakers) is currently being considered by the Social Affairs Ministry in Vienna. The financial assistance requested is in the region of 90 million schillings, to be used for restructuring the firm and maintaining its economic viability. This will not be the first time that this operation has been restructured with the help of State funds.

According to press reports, the Austrian Social Affairs Ministry has already agreed to grant the aid.

This assistance will go to alleviate burdens which should in fact be borne by the firm of Anker itself. The money is to be used not only for restructuring and safeguarding jobs, but also for purposes of expansion.

In my view, further support would represent a distortion of competition to the detriment of many small and medium-sized businesses in the baking and confectionery industry in Austria.

1. Is the Commission aware of this situation?

2. What is the Commission's view of this financial assistance from the State?

3. What will the Commission do if the situation is deemed to violate the rules of competition?

Answer given by Mr Van Miert on behalf of the Commission

(12 November 1998)

A complainant already informed the Commission that the Austrian firm Anker applied for a state aid to the ministry of social affairs. The Commission will ask the Austrian authorities for their comments and will also investigate whether the company received any state aid in the past, and if so, whether the aid was provided in accordance with an approved or existing scheme.

In general, rescue or restructuring aid to a large undertaking would require an individual notification to the Commission. If any Member State grants state aid to an undertaking before the Commission has made its position known, the Commission would without any delay initiate the procedure provided in Article 93 (2) of the EC Treaty. If the Commission considers that such a state aid is not compatible with the common market having regard to Article 92, the Commission would declare the aid illegal and the Member State would have to recover the state aid.