Kroes Cautions Against Loosening State Aid Rules

Law360, New York (April 30, 2007, 12:00 AM EDT) -- The European Union’s Competition Commissioner has taken a hard stance against Member States adding extra incentives to state aid, warning that the move could negatively affect competition and trigger a subsidy war.

On Saturday, EU Competition Commissioner Neelie Kroes spoke of the dangers of state aid sweeteners to a group of EU economy ministers at the informal competitiveness council in Wuerzburg, Germany.

“Such aid would undermine one of the Union’s fundamental objectives: cohesion,” said Kroes. “The positive effect of structural funds intervention would be diluted if...
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