The European Commission started a thorough investigation on the circumstances the Romanian state offered a 57 million euro state aid to Ford for its factory in South Romania, a press release of the institution shows. Commissioners fear that the state aid offers Ford an advantage as compared to the normal program in progress.
The Commission needs to make sure that public funds are not intended to cover operational costs of the big factories but are intended to add some value, European Commission on Competition Neelie Kroes declared. She underlined that the Commission sustains funds that improve worker's skills.
Romanian authorities notified the Commission of their intention to subsidize the workers' training program with 57 million euro at Ford, an action which abides the regulations in the EC Treaty. However, the Commission has its doubts regarding the compatibility of the aid proposed with the European regulations on training improvements.
Ford took over last year 72.4% of the Romanian car factory Automobile Craiova for 57 million euro. The contract was analyzed by the European Commission that rules that Romania needs to recover an illegal state aid of 27 million euro.