The European Commission this week (31 October) cleared a 283-million-ecu Spanish government subsidy

Date: 02/11/1995

to help restructure Volkswagen subsidiary SEAT. The clearance follows assurances from Madrid that SEAT's capacity would be cut by 30&percent; with the closure of its Zonafranca paintshop in Barcelona and assurances that no further capital injections or discretionary aid would be paid to fund the restructuring.