EU Acts to Reclaim State Aid to Beaulieu Group

Brussels, Belgium, January 25, 2006--The European Commission said Wednesday it was taking Italy and Belgium to court for failing to obey orders to reclaim illegal state aid, including Belgium's payments to Beaulieu Group. It said Italy never took back extra unnecessary aid it gave in 2002 to companies investing in areas affected by natural disasters such as floods or the volcanic eruption of Mount Etna and Sicily. Belgium did not follow EU instructions to recover Â€2.8 million (US$3.44 million) in claims owed by the Beaulieu group, a holding company for several carpet and synthetic fiber businesses, it said. The EU executive ruled that both government grants were illegal because they did not meet EU rules on state subsidies. "I intend to take a very strict line with member states that do not comply with commission decisions on state aid," said EU Competition Commissioner Neelie Kroes. "This is essential for the credibility of our state aid policy."

Related Topics:Beaulieu International Group

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