EXISTENCE OF STATE AID FOR FRANCE TELECOM CAN BE DEMONSTRATED.

• Position: Brief Article

The French economic daily Les Echos reported on January 13 that the existence of State aid granted by the French Government to France Telecom can be demonstrated, according to the initial conclusions of analysts Nera, assisting Competition Commissioner Mario Monti's services in its enquiry into the dossier. The economic daily insists these are just "preliminary" conclusions, adding that here is no certainty they will be endorsed by the European Commission. Nera points to a series of factors that demonstrate the existence of this aid, notably declarations by the French Government and the Euro 9 billion credit line granted to the operator in autumn 2002, even though it has never been used. By causing a visible increase in share values, the French Government's declarations have had a patent effect on the market, according to Echos. Whilst France insists this "real-false" loan does not constitute aid, since ultimately it has never been used, the daily suggests the Commission may consider that...