European Commission says it will help Nurburgring avoid insolvency – Formula 1 news
European Commission (EC) says that it will investigate the financial case of Nurburgring, as it has doubts related to the financial conditions of the circuit.
Moreover, it believes that Nurburgring is going against the European Union State laws concerned with granting aid.
EC says that it believes that the German circuit has the capabilities to perform its functions even without the intervention of the local government and the companies involved can even operate without any financial assistance.
EC said, “At this stage, the Commission has doubts that the measures were granted on market terms and that the companies are viable without continued state support.”
It believes the investigation will provide third parties an opportunity to comment on more detailed procedures under assessment.
“The extension of an in-depth investigation gives interested third parties an opportunity to comment on the additional measures under assessment,” EC said.
Furthermore, EC said that the purpose of the investigation is to help Nurburgring avoid the chances of immediate insolvency because it fears that the financial aid was granted on market terms.
Moreover, the commission said that it fears that Nurburgring was facing problems in 2008 when it was previously provided financial assistance and financial may only be provided to a company, for once, in a decade according to the rules of European Union
State about aid.
“The Commission is concerned that Nurburgring may already have been a company in difficulties in 2008, when it received the previous aid,” EC said. “Rescue or restructuring aid to a company in financial difficulties may be granted to a given company only
once in a period of 10 years.”
It was earlier announced by the local government that it will provide financial support to Nurburgring so that it may continue hosting races along with Hockenheim alternatively. This was announced after the announcement of Nurburgring that it fears that
it will not be able to host Formula 1 in the next 2013 season.
Responding to the news that Nurburgring will not be able to host the Formula 1 event alternatively, Hockenheim has announced that it has the potential to host the event every year but it would be their pleasure if the event is organised as it always used
to be.
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