Business in Brief

Commission to probe Ryanair’s Aer Lingus bid

The European Commission announced yesterday (20 December) that it was launching an in-depth inquiry into the planned acquisition by Irish low-cost airline Ryanair of Ireland’s flag-carrier Aer Lingus. The Commission said it had "serious competition concerns" about the deal including a possible reduction in customer choice and higher fares. Ryanair has offered €1.48 billion for Aer Lingus but the deal is not popular with shareholders.

Free trade agreement

On Tuesday (19 December), eight Balkan countries signed an EU-backed Central European Free Trade Agreement during a meeting in Bucharest. Supporters of the agreement say it will make trade within the region easier, replacing 32 existing bilateral treaties. The signatories were Albania, Bosnia and Herzegovina, Bulgaria, Croatia, UNMIK/Kosovo, Macedonia, Moldova, Montenegro, Serbia and Romania.

Price stability risk

European Central Bank (ECB) President Jean-Claude Trichet told MEPs yesterday that there were still "upside" risks to price stability. He told the Parliament’s economic and monetary affairs committee that the ECB would "monitor very closely all developments" so that those risks did not materialise.

French tax scheme broke state aid rules

The Commission said yesterday that a tax scheme benefiting several major French companies broke EU rules on state aid. But companies which benefited from the scheme, known as economic interest groupings (EIGs), mainly in the maritime transport sector, will not have to repay the equivalent of the tax breaks they received between 1998, when the scheme was introduced, and April 2005, when a formal investigation into the practice was launched.

Scania takeover bid

The Commission approved the planned takeover of Swedish bus and truckmaker Scania AB by German vehiclemaker MAN AG, saying the deal would not reduce competition. Competition Commissioner Neelie Kroes said the Commission was "satisfied that competition in price and technology will remain strong in the future on the bus and truck markets".

Utilities conditions

The Commission said yesterday that a tax scheme benefiting several major French companies broke EU rules on state aid. But companies which benefited from the scheme, known as economic interest groupings (EIGs), mainly in the maritime transport sector, will not have to repay the equivalent of the tax breaks they received between 1998, when the scheme was introduced, and April 2005, when a formal investigation into the practice was launched.

The European Commission will open the gates on Friday (22 December) to applications for €4 billion of EU research funding.