December 03, 2008

Court says Salzgitter may have to pay back German state aid

Thomson Financial reported that European Union's highest court ruled that German steelmaker Salzgitter AG may have to repay state aid which the European Commission deemed illegal.

As per report the European Court of Justice sent the case back to the second highest court, the Court of First Instance for scrutiny.

A spokesman for competition commissioner Mr Neelie Kroes welcomed the ruling, but said that the EU executive will have to wait for the CFI's decision on the case before commenting further.

In 2000, the commission said that tax aid granted by the German government to Salzgitter, Preussag Stahl AG and units of the group from the 1980s to 1995 were incompatible with EU rules. It ordered the repayment of the aid. In 2004, the CFI overturned part of the commission's ruling.