EU sues Slovakia over illegal state aid
(BRUSSELS) - The European Commission said on Tuesday it had filed a lawsuit against Slovakia before an EU court for failing to recover what it deemed to be illegal state aid.
In June 2006, the commission ruled that a decision by Slovak tax authorities to forgive 416.5 million koruna (13 million euros, 21 million dollars) in arrears from spirits producer Frucona amounted to illegal state aid.
Although action was taken to enact the decision, the case has been bogged down in local courts and the money has not been recovered from Frucona as the commission ordered.
"The commission will continue to be strict with member states that fail to implement its state aid decisions," Competition Commissioner Neelie Kroes said in a statement. "This is crucial to avoid unfair distortions of competition."
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