WRITTEN QUESTION E-2665/99

by Yasmine Boudjenah (GUE/NGL) to the Commission

(12 January 2000)

Subject: Restructuring of ABB Alstom Power

The management of the ABB Alstom Power group, which was formed in a merger on 30 June 1999, has announced a restructuring programme. In some countries where the undertaking operates job cuts have already been announced.

Have this group and/or its pre-merger constituent groups received any EU aid?

If so, could the Commission give details of the amount and the conditions under which it was granted? Was such aid conditional on job creation? Is the Commission prepared to ask for it to be repaid?

Supplementary joint answer to Written Questions E-2665/99 and E-0233/00 given by Mr Barnier on behalf of the Commission

(7 June 2001)

The information received from the competent authorities in the various Member States shows that the ABB Alstom Power group has received the following Community aid.

In Greece, the company formed part of a consortium carrying out a major energy-producing project at Komotini, which received part-financing amounting to 72 million under the Community support framework for the programming period 1994-1999. The company also worked on a number of projects part-financed by the European Regional Development Fund under national aid schemes. These totalled 36 million.

In France, the following aid was provided for staff training under Objective 4 of the Structural Funds during the programming period 1994-1999:

- FRF 1 056 616 to the Alstom electrical machines company;

- FRF 2 214 760 to the Alstom steam turbines company.

None of this part-financing was subject to conditions as regards the creation of jobs.

Companies in the Abb Alstom Power group also received funds from the European Social Fund (ESF) in 1994-1999 under Objective 4 Preparing workers for industrial changes and changes in systems production. In France this amounted to 1 442 919, in Finland to 44 107 and in Sweden to 244 324.

In Germany, three training operations for some 220 partially unemployed workers in the ABB group took place; the amount programmed was 929 000. However, the group itself did not benefit directly from ESF assistance.

The ESF contributed at the maximum rate of 50 % to a number of operations which were selected by a programming committee of which the Commission was not a member. To be selected and benefit from Community financial assistance they had to meet the general eligibility criteria laid down by the Commission and the specific criteria laid down by the Monitoring Committee. Checks on the eligibility and correctness of the operations were carried out by the Member State, in compliance with its obligations under Commission Regulation (EC) No 2064/97 of 15 October 1997 establishing detailed arrangements for the implementation of Council Regulation (EEC) No 4253/88 as regards the financial control by Member States of operations co-financed by the Structural Funds(1), the Commission or the Court of Auditors. In the event of an infringement, any sums wrongly paid were to be refunded.

The Commission would, however, draw the attention of the Honourable Members to the fact that regional aid for the initial investment and related job creation must now be made conditional, by the method of payment or the conditions attached to the grant, to maintenance of the investment in question or the job created for at least five years.

The Commission introduced this new provision at the end of 1997 in its guidelines on national regional aid(2). This condition, imposed by the Commission in its decisions on Community surveillance of State aids, is gradually being introduced into all national provisions on regional aid to firms, whether or not these include assistance under the Structural Funds.

(1) OJ L 290, 23.10.1997.

(2) OJ C 74, 10.3.1998.