EC investigates a possible state aid offered by the Romanian state to Oltchim

The European Commission investigates the conversion of a debt worth 135 million euro and a state guarantee of 339.2 million euro which the government plans to offer to Oltchim, the biggest chemicals company in Romania, Romanian news agency NewsIn informs, quoting a press release of the institution. EC doubts whether these measures are compatible with state aids.

The investigation offers interested parties the possibility to present observations regarding the measures taken, but these do not affect the result of the procedure. The European Commission needs to verify the measures proposed, Neeli Kroes, EC Commissioner on Competition declared.

On July 17, 2009, Romania notified the EU regarding to measures taken to sustain Oltchim, one of the biggest chemical companies in Romania and in South East Europe. The Romanian state owns most of the shares of this company.

In accordance with EU norms, public authorities can intervene if the intervention take place in conditions which would otherwise be accepted by any private actor on the market ( the principle of the investor in market economy).