Press Release: State aid: Commission endorses €3.5 million training aid to Volvo Cars Gent

The European Commission concluded that €3.54 million aid the Flemish Region intends to grant to support training at Volvo Cars Gent ('VCG') is compatible with EC Treaty state aid rules. The Flemish Region notified in May 2007 a €6.02 million aid project. The Commission opened an in-depth investigation (see IP/07/1311), as it had concerns that part of the aid might serve to finance training activities which VCG would have carried out in any event, even without aid. Such operating aid distorts competition between assembly plants and is in principle prohibited. Following the Commission's concerns, Belgium has modified its project, so as to target only training activities that would not be organised without aid.