Europe > Western Europe > France > EU Commission investigates on Renault's subsidiary in Slovenia

France: EU Commission investigates on Renault's subsidiary in Slovenia

2013/07/03

The European Commission has opened an in-depth investigation to examine whether Slovenian plans to grant public financing to car maker Revoz, d.d., a subsidiary of Renault S.A of France for an investment project in the Novo Mesto region, are in line with EU national aid rules.

In particular, the Commission will verify whether the positive effects of the project for regional development outweigh the distortions of competition triggered by the public support. The opening of a formal investigation gives interested third parties the possibility to comment on the proposed measure. It does not prejudge the outcome of the investigation.

Commission Vice-President in charge of competition policy Joaquin Almunia said: ''The EU Commission welcomes aid to encourage investment projects in disadvantaged regions. At the same time, such investments must not do additional harm to competition than they help the region concerned, particularly in sectors with overcapacity''. In 2011, Slovenia notified plans to offer Revoz d.d. a 40 million direct grant for an 300 million investment project for the production of two car models (the new Renault Twingo and the new Smart 4 seater). These two models belong to the small city car segment of the passenger car market which is currently in significant absolute decline. The investment is aimed at creating some 162 additional jobs in the Novo Mesto region which is eligible for regional aid as an area with significant unemployment and a below EU average standard of living.

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