P.M. BRIEFING : Renault Told to Repay Some Aid
The European Commission ordered French car maker Renault today to repay $625 million out of a total of $2.1 billion of aid it received from the French government.
A spokesman for the commission, the executive body of the European Community, said the state-owned car maker must also keep another $446 million on its books as long-term debt, paying interest as scheduled.
He told reporters that France will not be allowed to inject fresh capital into the company until the end of 1990.
The decision was reached at the weekly meeting of the 17 European commissioners who are responsible for ensuring that government aid does not distort free competition in the community.
The Renault case was one of the most sensitive in the sector, with Competition Commissioner Sir Leon Brittan pressing for repayment of $1.5 billion and France insisting that it was entitled to inject capital into a state-owned company.
The spokesman said, however, that the commission meeting was cordial and that the agreement on repayment terms was “a collective decision.”
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