The European Commission (EU) called for an investigation into the Belgian aid for several airports in the Wallonia region.
The European Commission requested for more information regarding the issue from the Belgian authorities in July 31 of this year, according to an email from EU spokesman Jonathan Todd to Bloomberg.Todd reiterated that the investigation is the competition watchdog's initiative and not a formal probe.If proven improper, the commission has the authority to require and demand that the companies involved pay back the Belgian government the entire amount of the grant.
This is in light of the commission's suspicions that Ryanair Holdings Plc along with its low cost competitors, may have fraudulently profited from the additional funding for capital. With this development, the commission may be pushing to issue stricter regulations next year. According to L'Echo's news report, unprofitable airports may then find government subsidies for their survival more difficult to obtain.
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