Press Release: State aid: Commission takes two state aid decisions regarding German paper mill Propapier

The European Commission concluded after a thorough investigation that a German measure authorising investment aid to Propapier for the construction of a paper mill in Eisenhüttenstadt (Brandenburg, Germany) was in line with EU state aid rules. In particular, it concluded that the positive effects of the aid on regional development outweighed its negative effects on competition. The Commission re-assessed this case, after the annulment of its original decision of 2008 by the EU General Court, in light of the guidance provided by the court. In a separate investigation, the Commission also found that a new waste water plant and surrounding infrastructure built by the German state did not involve state aid, as they were general infrastructure, not dedicated specifically to Propapier. Moreover, the wastewater treatment fees charged to Propapier cover the incremental costs and involve no state aid.

ESO: Background information: State aid: Commission opens investigation into public financing for German paper mill Propapier after Court judgment http://www.europeansources.info/record/press-release-state-aid-commission-opens-investigation-into-public-financing-for-german-paper-mill-propapier-after-court-judgment/

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