Source: European Parliament
EU State aid rules are intended to ensure a level playing field in terms of trade and competition. In return for free access to the EU market for industrial goods under the Customs Union agreement, Turkey has committed to complying with EU State aid rules. Nevertheless, Turkey has still not fully aligned its legislation with the EU acquis in this area to ensure that State aid regulations are properly enforced. This allows authorities to use public funds for the benefit of individual companies, giving them a competitive advantage over EU Member States in attracting investment. According to several reports, in its bid to convince the car manufacturer Volkswagen to invest in a new production facility, Turkish authorities have offered a purchase guarantee to buy 40 000 vehicles a year for government use and a state subsidy of EUR 400 million.
Does the Commission consider that the scheme offered by the Turkish Government constitutes an infringement of EU State aid rules?
How does the Commission plan to ensure a level playing field between the EU and Turkey and avoid a distortion of competition?
Will the Commission request the Association Council to examine this possible breach of the Customs Union?