Press Release: State aid: Commission opens investigation into UK scheme to support paper production from waste paper

The European Commission on 7 December 2005 opened an in-depth investigation under EC Treaty state aid rules into a proposed UK scheme granting aid to paper mills to increase printing and writing (P&W) paper production capacity and to stimulate the demand for collection of waste paper from offices. The Commission recognised the environmental benefit of recycling waste paper, but it had doubts whether the use of recycled fibre for the production of P&W paper went beyond the 'state of the art' in the industry.