BUSINESS

New case at ECJ on Larco subsidies

CHRYSSA LIAGGOU

TAGS: Privatizations

The European Commission is pressuring the government to sort out state nickel producer Larco, either through its privatization or its closure: Brussels has again referred Greece to the European Court of Justice, demanding a huge fine for the non-implementation of the same court’s decision on illegal state subsidies to the mining company since 2017.

The Commission is demanding a penalty of 30,407.12 euros per day since the ECJ’s decision on November 9, 2017 for the delay in its implementation. This currently runs to more than €27.4 million.

Brussels has made this new case at the European court while taking into account the seriousness and the duration of the European law violation by Greece. The case of the illegal subsidies of €136 million has been of concern to the Commission since 2014, when it issued its first reasoned opinion against Athens.

This new case finds Larco in a state of receivership, while also held hostage by its unions, which oppose government plans for the industry’s privatization. The latter appears to be the only way for the company to attain sustainability.

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