Brussels is investigating whether Spain granted illegal aid by compensating a Japanese group

The European Commission has opened an in-depth investigation to determine whether Spain provided illegal state aid through a compensation payment made to a Japanese company. The inquiry focuses on a 23,5 million euro indemnity ordered by an arbitration tribunal and paid by Spain to JGC Holdings Corporation.

The arbitration and subsequent payment stem from regulatory changes and cuts introduced by Spain regarding the country's renewable energy regime. The Commission is examining if this financial compensation complies with European Union state aid rules.