Press Release: State aid: Commission opens investigation into possible aid for privatisation of Romanian company Tractorul

The European Commission has opened a formal investigation under EC Treaty state aid rules into possible aid in the context of the privatisation of tractor producer Tractorul and its sale to Flavus Investments SRL in July 2007. The Commission has also required Romania to suspend the granting of any unlawful aid until the Commission takes a decision on the compatibility of the aid. The Romanian authorities attached specific conditions to the privatisation, in particular the maintenance of the current activity for 10 years and the rehiring of former employees of Tractorul. The Commission has to verify whether these conditions resulted in a lower sales price than if the privatisation had been unconditional, in which case there could be some element of state aid. The opening of an investigation gives interested parties the possibility to comment on the measures under examination. It does not prejudge the outcome of the procedure.