A premium paid to companies stripping car wrecks in the Netherlands, so that their
parts can be re-used or recycled, is being investigated by the European Commission,
which claims that the rate could be so high, that it would be an illegal subsidy,
outlawed by European Union law.
EC state aid rules are designed to ensure that national governments do not
give their industries an unfair advantage in the EU marketplace. The Commission
has the power to order Member States to cease making payments, or even order
that they are repaid, if it concludes they break the regulations.
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In this instance, the Commission is focusing on a system, which sets a levy
of 45 euros to be paid in 2001-2003 by car producers and importers, which is
used to cover the cost of dismantling and recycling car wrecks.
Because the premium paid to dismantling companies has been established by calculating
the average cost of dismantling a car wreck, and the actual costs vary significantly
– with some four times as low as others – the Commission alleged that
“it is likely that the premium implies overcompensation” to some companies,
which could be considered illegal state aid, said an EC statement.
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