The Deggendorf Case Law as a Means to force the Recovery of illegal aids.
Keywords:
State aid, judgement Deggendorf, illegal aid, recovery of illegal aid.Abstract
The lack of compliance with a recovery decision on illegal aid forces the Commission to bring the matter before the European Court of Justice. Therefore, the distortion of the competition that the illegal aid constitutes carries on during the development of that proceeding. The Deggendorf principle forces the recovery of illegal aid because, according to it, the Commission may suspend the payment of an aid to a company with a pending recovery decision. The Commission has extended the scope of said judgement to entities other than the beneficiary of aid in cases where the beneficiary of new aid belongs to the same «economic unit». The case is pending before the Court of First Instance, which may probably confirm the scope of the Commission. In addition, the Commission is including said principle in the new notification forms; in the decisions approving new aid schemes and in new legislative texts. The negative part of this principle is that it is applied, sometimes, without real motivation. The main positive aspect is that it reinforces the State aid policy.Downloads
Published
2008-05-14
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