The European Commission is set to order the Spanish treasury to recover "illegal aid" granted as tax cuts to leading companies including Telefonica, Banco Santander and Abertis, reports El Pais, citing unnamed EC sources. The tax probe led by outgoing EU competition commissioner Joaquin Almunia centres on aid given to Spanish multinationals to facilitate the buyout of foreign companies. Although the sums involved have not been quantified and sources close to the companies insist that only a fraction of the aid has been spent, the cuts amount to ''several thousands of millions of euros'' according to the report. In Telefonica's case, three unnamed sources estimate that tax cuts for its EUR 7.5 billion acquisition of Brazilian operator Vivo in 2010 amount to around EUR 4 billion, although other sources close to the company suggest that the figure is much lower. The company said it wouldn't make any comments until it received the EC's final decision.
