Saturday, July 31, 2010

UPDATE 1-EU takes Greece to justice over taxation breaks

Wed Feb 24, 2010 6:26am EST Related News EU takes Greece to court over tax breaksWed, Feb 24 2010

* European Union executive says tax breaks were illegal

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* EU"s Almunia - determined to take all necessary steps

* Commission - no sign from Athens that money recovered

(Adds background, detail)

BRUSSELS, Feb 24 (Reuters) - The European Commission istaking Greece to court for failing to recover money given tohundreds of companies through what it labelled illegal taxbreaks, the EU executive said on Wednesday.

Under the scheme, companies were given breaks for activitiesincluding car manufacturing, mining and fishing but theCommission later ruled the roughly 200 million euros ($272million) of aid broke European Union rules.

On Wednesday, the EU executive said that Athens had failedto confirm that the tax windfalls given to the companies hadbeen recovered and that it would take Greece to the EuropeanCourt of Justice.

"The recovery of illegal aid is about restoring a levelplaying field in the single market," EU Competition CommissionerJoaquin Almunia said in a statement.

"The Commission is determined to take all necessary steps toensure that member states comply with their recoveryobligations."

(Editing by Ron Askew)

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