Press Release: State aid: Commission approves restructuring of Spanish public military shipyards

The European Commission on 1 June 2005 approved, under the terms of the EC Treaty's rules allowing Member States to take measures to protect essential security interests linked to defence industries (Article 296 of the EC Treaty), a reorganisation of the Spanish public military shipyards. These yards were formerly owned by IZAR but have recently been taken over by a new company called Navantia. The solution allowed Spain to protect its essential security interests by rescuing its military shipyards, while ensuring that there would be no undue distortion of competition in the market for civil shipbuilding and ship repair. The solution also took account, to the greatest possible extent, of the social and regional problems involved in this case.