Spanish Foreign Minister Jose Manuel Garcia-Margallo said on Monday that the European Commission (EC) has opened an official investigation into the receipt of illegal state aid by seven Spanish football clubs including Elche and Hercules, Real Madrid, FC Barcelona, Athletic Bilbao, Osasuna and Valencia,
He then confirmed that the Spanish government has never made any illegal grants and is now preparing arguments to defend the clubs in question. "It is obvious that the government will defend the seven clubs which are all part of the brand Spain" he said.
However the EC is citing the clubs for three different reasons, stating that they have benefited from public support incompatible with European Community rules.
Real Madrid, Barcelona, Athletic Club Bilbao and Osasuna are all being investigated because of their special tax status which, as they are still owned by their members, or socios, is said to provide them with an unfair tax advantage while the focus is on Valencia, Elche and Hercules who are being investigated because of help that they have received from the regional government in the form of loans and bank guarantees.
In addition, a further investigation is being carried out by the Commission into the affairs of Real Madrid over aid they received for the construction of their new training facilities at Valdebebas near Madrid’s main airport, and Bilbao over aid they received for the construction of their new stadium, which opened this season.
Brussels has said that all these investigations are at an early stage and there is still a great deal of legal argument to be covered. The minister said, there will now be a period of three months for the government to present it’s arguments.
The decision to begin proceedings, which could take many months to conclude and produce actual sanctions, will be officially announced in Brussels on Wednesday, Margallo was quoted as telling reporters in the Belgian capital.
Filed under: http://www.theleader.info/article/41967/
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