Brussels backs British Energy

Manufacturing News, Source : TheManufacturer.com
Published : 22 Nov 2002 9:56

European regulators are set to back the £650 million lifeline offered to beleagured nuclear power firm British Energy.

The European Commission is expected to find that the UK Government did not break EU rules by offering the loan and may also be allowed to offer more than the £650 million offered so far, the Financial Times reported. The commission added, however, that the UK had broken EU law by not informing Brussels before the loan offer was made.

However, the commission is expected to impose stiff conditions to the bail-out package. The cash may have to be repaid within a year, which could restrict British Energy’s opportunity for restructuring.

Comments on this story

click here to add a comment