Investigation launched into state aid for Spanish aeronautics company
The European Commission has launched an investigation to assess whether a Spanish Government loan of EUR 27 million to Industria de Turbo Propulsores (ITP), an aero-engines and gas turbines manufacturer, is breaching the Community's state aid rules. The aid would finance the company's involvement in developing a low-pressure turbine for the Boeing B787. It is intended to lower the risk associated with such projects, since the return on investment is uncertain and slow. 'We need to assess thoroughly whether the positive effects of the aid outweigh its possible negative effects on competition,' EU Competition Commissioner Neelie Kroes commented. Among the aspects to be investigated will be the effects of the aid on stimulating further ITP research and development activities; the eligible R&D costs and their classification; and the aid's impact on competition. Interested parties will be invited to provide comments on these and other aspects.
Countries
Spain