The European Commission has decided that tax breaks granted to thousands of companies are incompatible with EU State aid law. Greek Law 3220/2004 allows companies in a number of sectors to deduct up to 35 per cent of their profits, on the condition that the exempted income is used to finance expenditure on the purchase, construction and expansion of plants, buildings and equipment. The sectors include the production of textile materials and basic metals, manufacturing, energy production, mining, intensive agriculture and fisheries and certain tourism activities. The Commission has required the immediate recovery of the incompatible aid, including interest, from the beneficiaries.