FT places EUR755 million in escrow following ECJ ruling

29 Oct 2007

France Telecom (FT) has placed EUR755 million (USD1.09 billion) in escrow following the ruling of the European Court of Justice (ECJ) on 18 October 2007 that the French government must recover up to EUR1.1 billion (USD1.56 billion) in illegal state aid it provided to the country’s incumbent. The Court ruled against the French authorities and sided with the European Commission which now wants the money repaid within months following the three-year legal battle. The ECJ concluded that France had failed to respect its obligation ‘to execute within the prescribed time limits the 2 August 2004 decision of the European Commission relating to the special business tax regime which the law of 2 July 1990 had imposed upon France Telecom’. FT has now placed monies aside pending a final decision on the ruling.

France, Orange Group