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EU Requests Spain To Recover Illegal Aid In Basque Provinces



BRUSSELS -(Dow Jones)- The European Commission asked Spain to comply with a court judgment requiring the country to recover illegal state aid given by certain Basque provinces, it said Friday.

"If Spain continues to fail to comply with the European Court of Justice decision, the commission may refer it to the Court for a second time and request the ECJ to impose fines until the aid has been fully recovered," the commission, the European Union antitrust body, said in a statement.

The commission found out in 2001 that a fiscal aid scheme granting a 10 year corporate tax exemption to new firms in three Basque provinces was giving an advantage to certain companies, and ordered to recover that aid.

-By Alessandro Torello, Dow Jones Newswires; +32 2 741 14 88; alessandro.torello@dowjones.com


  (END) Dow Jones Newswires
  11-20-090600ET
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