The French government’s proposed subsidy to the domestic appliances manufacturer, FagorBrandt amounting to €31m, is to be investigated by the European Commission (Commission). FagorBrandt has suffered financial losses between 2004 and 2006 due to competition on the domestic appliances market from Asia and Turkey. The financial difficulties were compounded by a Commission decision in 2003, which required FagorBrandt to pay back more than €22.5m in illegal aid (plus interest). The Commission’s current investigation will focus on whether the subsidy will enable FagorBrandt to be restructured into a viable entity or whether it is being misused towards the repayment of the illegal aid. Interested parties now have the possibility of commenting on the proposed measures before a final decision is taken.