- Apr 27, 2006
EU announces investigation into planned GM aid
The European Commission announced yesterday that it is investigating a $6.6 million dollar subsidy grant planned for General Motors of Europe. The aid package was to be supplied by the Belgian regional government in Flanders and go towards training employees at the EuroGeneral's plant in Antwerp.
EU authorities are openly skeptical that the funds would actually go towards funding training, fearing that the hefty subsidy would be used for other non-approved ends. Under state trade rules, national and/or regional governments are banned from giving aid to a non state-owned entity if such arrangements upset EU competition rules.
[Sources: Associated Press via Forbes; paed.uni-muenchen.de]