State investment aid to Duslo Šaľa in Order, says EU

The European Commission on Tuesday concluded that the Slovak Government's plan to provide regional investment aid in the form of tax relief worth €58 million to the chemical company Duslo Šaľa is in line with the EU's rules on state aid. The firm in the Nitra region is part of the Czech conglomerate Agrofert, which is owned by Czech Finance Minister Andrej Babiš, who comes from Slovakia. The company produces artificial fertilisers and other chemical products, including rubber substances. The European Commission has concluded that the aid to Duslo will support the goals of regional development without infringing on economic competition in the EU's common market. According to the Commission, the area of Šaľa has a high unemployment rate (around 10 percent) and lower living standards than the EU average, which entitles it to receive regional aid. Duslo is set to invest around €310 million, with the project expected to preserve 1,800 jobs as well as hundreds of jobs among supply companies. The aid has been criticised by the Slovak Opposition. Freedom and Solidarity (SaS) MEP Richard Sulík stated that the most suspicious thing about the tax relief provided to Duslo Šaľa is selective treatment - more specifically, too much tax relief compared to other companies. If the company gets tax relief of €58 million while investing something more than €300 million, then any company investing €300,000 should get relief of €58,000,000 Sulík says.