Greece has agreed to end the civilian activities of its main shipbuilding company for 15 years, in order to end a court case over illegal aid with the European Union, officials in Brussels confirmed Monday.
State aid in the EU is governed by strict rules, but Greece broke them by granting Hellenic Shipyards (HSY) hundreds of millions of euros in aid and guarantees over the last 15 years. In April, the European Commission sued Greece in an attempt to end the situation.
Greece argued that HSY's survival was a national security issue, since it is the country's premier naval shipyard.
The Greek government and the commission have therefore agreed that 'the 'non-naval' assets of HSY will be sold and ... HSY will not carry out any civilian activities for the next 15 years,' the European Commission said in a statement formalizing the agreement.
The money from the sale of the non-naval assets will go back to the embattled Greek state as a partial repayment of the illegal aid.
Greece will also end all illegal financial guarantees to HSY, claim back land which it granted the company for civilian activities and report every year on the implementation of the 15-year ban.
Once those conditions are met, 'the commission will consider the possibility to withdraw the court action it engaged in April,' the statement said.
State aid in the EU is governed by strict rules, but Greece broke them by granting Hellenic Shipyards (HSY) hundreds of millions of euros in aid and guarantees over the last 15 years. In April, the European Commission sued Greece in an attempt to end the situation.
Greece argued that HSY's survival was a national security issue, since it is the country's premier naval shipyard.
The Greek government and the commission have therefore agreed that 'the 'non-naval' assets of HSY will be sold and ... HSY will not carry out any civilian activities for the next 15 years,' the European Commission said in a statement formalizing the agreement.
The money from the sale of the non-naval assets will go back to the embattled Greek state as a partial repayment of the illegal aid.
Greece will also end all illegal financial guarantees to HSY, claim back land which it granted the company for civilian activities and report every year on the implementation of the 15-year ban.
Once those conditions are met, 'the commission will consider the possibility to withdraw the court action it engaged in April,' the statement said.