The European Commission has opened a formal investigation into a planned €7.425m-subsidy package planned by the Dutch government into its country's malt sector.
The money would help establish a malt production plant in Eemshaven, in the Netherlands' roningen province. Its aim is to create an integrated national chain of malt production, from the storage and processing of malting barley to the production and trade in malt.
However, the Commission is questioning whether there is a sufficient market for the plant's malt.
Under European Union (EU) state aid rules, national governments are banned from subsidising what would otherwise be unprofitable enterprises. If Brussels concludes that the subsidies conflict with these EU guidelines, it could block their payment by The Hague.
Sectors: Beer & cider
