Spanish drop objections, Slovakia closes 28th EU chapter

Slovakia yesterday came to a deal on the economic competition area of European Union rules after Spain dropped its objections to the Slovak government’s continuing financial support of a Volkswagen factory in Bratislava.

VW, which has decided to shift its production of the Seat Ibiza model from Spain to Slovakia, will be allowed to keep most of the tax breaks promised by the Slovak government through 2008, although the extent of the aid will be limited to 30 per cent of the car maker’s investments. VW has been one of Slovakia’s most important foreign investors since settling in Bratislava in 1991.

Steel firm US Steel Košice, on the other hand, will be allowed to keep up to $500 million worth of the tax breaks it had been promised through the year 2009.

European rules forbid state aid to steel and auto sector firms, and Slovakia had faced stiff opposition to keeping its investment stimuli in these branches following its expected entry to the EU in 2004.

Other aid the Slovak government has offered to dozens of investors will have to be phased out within a year of entering the Union.

Compiled by Tom Nicholson from press reports.
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

Bratislava for Everyone

Open houses, free events mark start of tourist season

WARM weather invites people to spend more time outdoors and tourism season ceremonially opens with  Bratislava for Everyone, or Open Days of Bratislava, events taking place April 24-26.

Váhostav-SK is heavily involved in highway construction in Slovakia.

Bailout for Váhostav-SK creditors sails through parliament

AMID a race to pass legislation that would come into effect before construction firm Váhostav-SK meets with creditors April 30, Prime Minister Robert Fico's government passed an overhaul to insolvency laws coupled…

Abada Capoeira to perform with Elledanse dancers

Countrywide events

Tips for events in Slovakia between April 24 and May 3, including  dance event, two coffee fests, jazz award gala, May Day celebration, teamsters' race and more.

Prime Minister Robert Fico

Poll: Smer's popularity falling

IF a general election had been held in mid April, the governing Smer party would still win with 34.7 percent of the vote, but this is down slightly from the month before according to the latest opinion poll carried…