European Commission Says Madeira Free Zone is not in compliance with State Aid rules

On December 4th, the European Commission determined that Portugal’s Ilha da Madeira Free Zone is not in compliance with the E.U. state aid rules and conditions. 

The European Commission determined that tax reductions were granted to companies that made no real contribution to the region. Portugal will now recover the incompatible aid, plus interest from those companies that did not meet the conditions.