EU to probe Spanish tax aid for ship purchases

EU antitrust regulators are to assess whether a Spanish tax scheme that helps shipping firms acquire vessels at prices lower than market rates breaches state aid rules,

the European Commission said on Friday.
Under the scheme, shipping companies buy the vessels via a contractual and financial structure set up by Spanish banks, rather than directly from the shipyards, resulting in prices up to 30 percent lower than the market price.
The Commission said the opening of an investigation would give third parties an opportunity to comment on the matter.
"The European Union needs a maritime sector that is competitive at international level and hence allows, for that purpose, favourable taxation based on tonnage to prevent companies from relocating," EU Competition Commissioner Joaquin Almunia said in a statement.
"This investigation is not questioning the principle of the tax, but the Commission must ensure that this Spanish scheme does not go beyond what is permitted by European rules and does not create undue distortions of competition in the single market."
Source: Reuters