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Germany: State ordered by EC to recover wood state aid

 |  November 6, 2013

Aid given to wood processor HoKaWe was ruled illegal under state aid law by the European Commission, say reports, resulting in a ruling that orders the German government to recover the funds.

The regulator announced the completion of its investigation into an agreement in which German Land Brandenburg delivered wood to HoKaW, finding that the deal offered an unfair economic advantage for the company.

The Commission has now ruled the company must pay back $3.25 million, as well as interest.

In a more in-depth explanation, the Commission said that the companies’ 2006 agreement included flawed wood price adjustments intended to reflect price fluctuations of the German wood index.

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