Press Release: State aid: Commission opens inquiry into France’s guarantee to Finnish electricity producer TVO

The European Commission has launched an in-depth investigation to establish whether the guarantee granted by France to a €570 million loan from a syndicate of banks financing the Finnish electricity producer Teollisuuden Voima Oy (TVO) is compatible with EC Treaty rules on state aid. The Commission considers that it needs to obtain clarifications from France and interested parties so as to establish whether the total costs of the loan (interest rate plus guarantee premium paid by TVO to the French Government) conform with market practices for this type of financial tool. The opening of an in-depth investigation allows interested parties to comment on the measure and on the initial assessment made by the Commission. It does not prejudge the outcome of the procedure.