ECONOMY

Larco is given two months to pay back state subsidies

larco-is-given-two-months-to-pay-back-state-subsidies

Time is running out for mining company Larco, given the European Commission’s new intervention on the return of state subsidies.

On Thursday Brussels announced its decision to sent a letter of formal notice to Athens over the non-implementation of the November 2017 European Court ruling regarding the recovery of illegal state subsidies of 135.8 million euros to Larco.

According to the Commission, Greece has two months to respond and prove it has recovered the aid in question. Otherwise, the Commission may decide to refer Greece to the European Union Court of Justice, calling on the latter to impose a lump sum fine and financial penalties on subsidies destined for Athens.

The case has been open since 2014, and Larco, which is under state control, has not implemented a streamlining plan in the meantime. This has resulted in the accumulation of debts to third parties, such as Public Power Corporation, to which Larco owes more than 300 million euros in unpaid electricity bills.

PPC has asked the government to approve the termination of the power supply contract between the two firms.