European Commission 26 January 2010, 2010/605/EU: Commission Decision of 26 January 2010 on State aid C 56/07 (ex E 15/05) granted by France to La Poste (notified under document C(2010) 133) Text with EEA relevance

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The European Commission determined that the unlimited state guarantee resulting from La Poste's legal form as a publicly owned establishment (établissement public) constitutes incompatible State aid under Article 107(1) TFEU. The Commission held that the inapplicability of ordinary insolvency procedures and the State's last-resort liability for debts provided a selective advantage by granting the entity more favorable borrowing terms. Consequently, France was ordered to effectively withdraw the guarantee by March 31, 2010, a requirement satisfied by the entity's conversion into a public limited company.AI