The European Commission holds that even when a public authority invests together with private investors on pari passu terms, the expected profitability of the project should still be demonstrated in order to comply with State Aid rules (Project Consorzio Casalasco del Pomodoro)

Application of the Market Economy Investor Principle to a Company Processing Agricultural Products* When a public entity injects fresh capital in a company in which it is already a shareholder, the new capital does not constitute State aid when it satisfies three conditions: i) all shareholders contribute in proportion to the shares they own, ii) the private participation is simultaneous and iii) the private participation is economically significant. Introduction In this article I examine Commission decision SA.36178 concerning an investment that is to be undertaken by Istituto Sviluppo Agroalimentare [ISA] in the share capital of Consorzio Casalasco del Pomodoro [CCDP]. [1] The investment is in the form of a capitalisation programme to achieve the financial balance of CCDP. The

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Author

Quotation

Phedon Nicolaides, The European Commission holds that even when a public authority invests together with private investors on pari passu terms, the expected profitability of the project should still be demonstrated in order to comply with State Aid rules (Project Consorzio Casalasco del Pomodoro), 17 July 2013, e-Competitions Bulletin July 2013, Art. N° 70654

Visites 61

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues