Nürburgring aid illegal
October 1, 2014
The EU Commission said on Wednesday that financial aid worth 456 million euros ($575 million) granted mainly by the German state of Rhineland-Palatinate to the Nürburgring racetrack, which hosts Formula One races, was in violation of EU rules.
EU Competition Commissioner Joaquin Almunia said that financial assistance was only allowed if they serve to "restructure a company and help it to become viable again, not keep them afloat artificially." In the case of the famous German racetrack "the aid clearly violated the [EU] rules."
The state of Rhineland-Palatinate has been ordered to pay the money back. The Nürburgring is based in the western German region of the Eifel, which is in Rhineland-Palatinate.
In 2012, the EU launched an investigation into several tranches of aid that were granted between 2002 and 2012. The aid was used, among other things, to build a theme park, which failed spectacularly, and hotels, which the EU says gave the racetrack's previous owners an unfair advantage.
The EU also criticized that the regional government never presented a viable restructuring plan in Brussels.
The Nürburgring itself as well as all the companies who benefited form the aid, have since gone into administration.
The EU also declared that the current owner of the Nürburgring, car parts maker Capricorn, will not have to pay. Capricorn bought the racetrack for just 77 million euros, less than one-quarter of the money spent on renovating what was always state property.
ng/uhe (dpa, AFP)