Press Release: State aid: Commission opens formal investigation into French plan to grant tax aid to insurers

The European Commission has opened a formal investigation to examine whether France's plan to grant tax aid to insurers for managing certain insurance policies ('contrats solidaires' and 'contrats responsables') is compatible with the rules on state aid in the EC Treaty. France sees the aid as a social measure which is purely of benefit to the final consumer, involves no discrimination between insurance providers and is hence compatible with the common market. Without calling into question the general social objective of the measures, the Commission wonders whether they are indeed non-discriminatory and how much consumers would really benefit from the advantages granted to insurers. The opening of a formal investigation gives interested third parties the opportunity to submit their comments. It in no way prejudges the outcome of the procedure.