Press Release: State aid: Commission requests France to recover unlawful aid from Arbel Fauvet Rail

The European Commission decided under EC Treaty state aid rules that the French authorities must recover illegal state aid received by Arbel Fauvet Rail, a manufacturer of railway wagons. The aid took the form of lower interest charged on two loans together worth €2 million granted to the company by French local authorities. The Commission's investigation found that the loans were granted at an interest rate lower than the rate the company would have been able to obtain on the market. This difference in interest gave an unfair advantage to Arbel Fauvet Rail over its competitors and constitutes incompatible aid. The precise amount of the aid to be recovered will have to be determined by the French authorities.