Tarom's 600m euros "not state aid"

Officials from the national carrier Tarom have maintained they will not receive state aid worth 600 million euros, since the respective sum in fact represents the state increasing its participation in the company’s share capital. The Competition Council has recently issued a decision authorising 600 million euro state aid for the restructuring of the airline by 2005, when Tarom should return to profit. “This is a sum by which the state is raising its stake in Tarom’s share capital. In the case of state aid, Tarom would benefit from preferential interest rates,” Tarom representatives feel. However, the text of the decision issued by the Competition Council entirely contradicts Tarom officials. In line with decision 130, “the total value of the state aid to be granted to SC Compania Nationala de Transporturi Aeriene Romane Tarom stands at 24,507 billion ROL (about 600 million euros)”. ZF