Press Release: State aid: Commission prohibits Dutch energy tax exemption for production of ceramic products

After an in-depth investigation opened in February 2009, the European Commission found in December 2009 that a tax exemption the Dutch State intends to grant for natural gas used in installations for the production of ceramic products would be in breach of EU state aid rules and therefore cannot be implemented. In particular, the Commission found that the tax exemption would provide a selective advantage to the Dutch ceramic sector and so constitute operating aid. Such aid can be authorised only if it furthers, at least indirectly, environmental objectives, in line with the requirements of the EU Guidelines on State Aid for Environmental Protection. As The Netherlands has not demonstrated how the measure would comply with the relevant provisions of these Guidelines, the Commission has concluded that the measure would be incompatible with the EU state aid rules.