On 12 September 2007, the Commission announced an inquiry into the compatibility with EU rules on State aid of a planned subsidy of € 6.02 m from the Flemish Region for general and specific training costs at Volvo Cars Ghent; the subsidy would amount to 20% of the company's total training bill. The Commission states that it wishes to ensure that the aid is not used purely to subsidise training costs which the company would have incurred anyway. The Commission bases its intention on a very restrictive interpretation of Regulation (EC) No 68/2001(1).
Can the Commission clarify how it intends to apply the EU rules on State aid in this case? What facts does the Commission take as a basis for claiming that the aid confers an unlawful competitive advantage and is therefore incompatible with EU rules on State aid?