Monti steps up battle on state handouts

Date: 22/03/01

By Peter Chapman

COMPETITION chief Mario Monti has launched stage one of his effort to 'name and shame' the EU member states who give the most bail-outs to their industry.

The Commissioner has published a registry showing his team is currently probing 543 state aid cases. Italy (108), Germany (92) and Spain (90) are under the most scrutiny. Luxembourg (1) and Sweden (5) face the fewest investigations.

Historically the Commission is likely to decide that member states in the majority of these cases do not fall foul of the EU's tough state aid regime.

But the register will be followed later this year by a more politically sensitive scoreboard showing which countries have paid the most illegal aid.

Monti said the register would boost transparency and "reinforce the process of peer pressure" on member states to cut subsidies.

"I hope that the register will contribute to a vigorous debate on state aid in member states and stricter respect by all concerned, in particular the member states themselves, of the existing rules," he said.

Monti vowed upon taking over the competition dossier he would "declare war" on state aid, claiming it distorts competition.

Competition chief Mario Monti has launched stage one of his effort to 'name and shame' the EU Member States who give the most bail-outs to their industry.