Press Release: State aid: Commission requires Greece to suspend illegal tax exempt fund and opens investigation

The European Commission required Greece under the EU state aid rules to suspend further granting of illegal state aid in the form of tax breaks under Greek Law 3220/2004, 21 October 2005. This law reduced the tax base of many companies in various sectors by 35% of their profits. This measure had never been notified to the Commission and was therefore illegal. At the same time the Commission launched an in-depth investigation as it had doubts that such aid would be compatible with EC Treaty state aid rules (Article 87) because of the serious risk that it would distort competition in a way liable to affect trade between Member States.