EU aid cleared for old Polish piles
The European Commission recently approved government aid for subsidizing the renovation of historic sites and supporting cultural activities. It says these activities do not distort competition as they focus on noncommercial activities.
"The EU is about more than free trade," said EU Competition Commissioner Neelie Kroes. "I am therefore pleased to be able to apply EU state aid rules that authorize subsidizes for projects that aim at preserving the diverse culture and national heritage of its member states."
Specifically, the Commission cleared the Danish, Hungarian and Polish programs. In Poland and Hungary, governments give money to companies to fund renovation and conservation work of historic buildings. The Polish government gives about EUR 4 (zł.16.6) million a year and the Hungarian authorities disburse about EUR 20 (zł.82.9) million a year.
In Denmark, companies are allowed to deduct donations to fund cultural events. About EUR 4.7 (zł.19.5) million in tax revenue is lost. But because the donations are limited to noncommercial activities, they don't cause any competition problems, the Commission said.
Some of the money goes to private companies and could be considered illegal state aid, the Commission cautioned. But because the money promotes "culture and heritage," it will be allowed. (Reuters)
"The EU is about more than free trade," said EU Competition Commissioner Neelie Kroes. "I am therefore pleased to be able to apply EU state aid rules that authorize subsidizes for projects that aim at preserving the diverse culture and national heritage of its member states."
Specifically, the Commission cleared the Danish, Hungarian and Polish programs. In Poland and Hungary, governments give money to companies to fund renovation and conservation work of historic buildings. The Polish government gives about EUR 4 (zł.16.6) million a year and the Hungarian authorities disburse about EUR 20 (zł.82.9) million a year.
In Denmark, companies are allowed to deduct donations to fund cultural events. About EUR 4.7 (zł.19.5) million in tax revenue is lost. But because the donations are limited to noncommercial activities, they don't cause any competition problems, the Commission said.
Some of the money goes to private companies and could be considered illegal state aid, the Commission cautioned. But because the money promotes "culture and heritage," it will be allowed. (Reuters)
