The European Union Commission recently overturned its previous ruling and said that Euro 8.68 million in Belgian government aid to container glass maker Verlipack SA was illegal.
In a statement, the …
The European Union Commission recently overturned its previous ruling and said that Euro 8.68 million in Belgian government aid to container glass maker Verlipack SA was illegal. In a statement, the Commission said it reversed the ruling because a Euro 12 million contribution from a private investor, made at the same time as the government aid, and seen as indicating Verlipack“s future viability, came from public resources. The aid was paid in 1997 and approved by the Commission in 1998. However, capital contributions from government are only allowed if carried out under conditions acceptable to a private investor in normal market conditions. Since the Commission has now concluded that the aid isn“t consistent with the action of a private investor, it is requiring Belgium to recover all the unlawful aid given to Verlipack.