The European Commission has launched an in-depth investigation into the financial aid that was granted to the Nurburgring’s operators.
The racetrack has been under growing financial uncertainty after it was redeveloped to include improved facilities and a leisure park. However the redevelopment failed to attract additional visitors which has resulted in delayed loan repayments and further loans from the local government to prop up its finances.
Germany has argued that the facility is a “general” infrastructure built in the public interest and open for public use, therefore is exempt from state aid rules.
However in a statement, the European Commission disagreed, saying it “has strong doubts that infrastructure for motor sport can be exempted from state aid rules,” which specify that a company in financial trouble can only be granted aid once within a ten year period.
It added: “The complex benefited from several support measures, mainly in the form of loans, guarantees, capital increases and revenues from a gambling tax. These measures were granted by the German Land Rhineland-Palatinate and by public undertakings controlled by the Land.
“The support related to expenses for the construction and operation of facilities directly linked to the race track (mainly a tribune), for the construction and operation of facilities for the promotion of tourism and for the organisation of Formula 1 races.
“At this stage the Commission takes the preliminary view that all these measures, which have not been notified to the Commission, may have been granted under terms more favourable than the market conditions and may therefore confer an undue economic advantage to the owners and operators of the complex vis-à-vis their competitors. This would distort competition in the Internal Market, in breach of EU state aid rules.”
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