pounds 650 Iberia subsidy gets EU go-ahead
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Iberia, the Spanish airline company, is to be allowed by Neil Kinnock, the European Commissioner, to receive a subsidy of 87bn pesetas (pounds 650m) from its state-owned holding company, Teneo. A further pounds 200m may be allowed in 1997.
The Commission's agreement comes despite objections by other European airlines that the capital injection was an indirect form of state aid. Iberia argued that the subsidy, which follows wage cuts of 15 per cent for airline staff and 3,500 planned redundancies in the next two years, will be funded by the privatisation of other companies in the Teneo group.
An Iberia spokesman said yesterday: "We are delighted the [Commission] has concluded that the capital injection is not state aid but the sensible action of an interested shareholder."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments