Judgment of the Court (Fifth Chamber) of 14 July 2011 – Commission v Italy
(Case C-303/09)
Failure of a Member State to fulfil obligations – State aid – Aid to firms investing in the municipalities seriously affected by natural disasters in 2002 – Recovery
1.State aid – Commission decision finding aid incompatible with the common market and ordering its recovery – Obligations of the Member States – Duty to recover – Implications (Arts 88(2) EC and 249 EC; Council Regulation No 659/1999, recital 13 and Art. 14(3); Commission Decision 2005/315, Art. 5(3)) (see paras 29-31, 41)
2.Actions for failure to fulfil obligations – Failure to comply with a Commission decision concerning State aid – Decision ordering recovery of unlawful aid – Defences – Absolutely impossible to implement – Criteria for assessment – Difficulties in implementing – Duty of the Commission and the Member State to work together in seeking a solution consistent with the Treaty (Arts 88(2) EC and 249 EC) (see paras 33-38)
3.State aid – Commission decision finding aid incompatible with the common market and ordering its recovery – Action before the national court against national implementing measures – Preliminary plea challenging the legality of that decision – Grant by that court of provisional suspension measures – Whether permissible – Conditions (Art. 88(2) EC; Commission Decision 2005/315) (see paras 45-46)
Re:
| Failure of a Member State to fulfil obligations – Failure to adopt, within the prescribed period, the measures necessary to comply with Articles 2, 5 and 6 of Commission Decision 2005/315/EC of 20 October 2004 on the aid scheme implemented by Italy for firms investing in municipalities seriously affected by natural disasters in 2002 (notified under document No C(2004) 3893) (OJ 2005 L100, p.46). |
Operative part
The Court:
1. |
| Declares that, by failing to adopt, within the prescribed period, the measures necessary to recover from the beneficiaries all the aid granted under the aid scheme declared incompatible with the common market by Commission Decision 2005/315/EC of 20 October 2004 on the aid scheme implemented by Italy for firms investing in municipalities seriously affected by natural disasters in 2002, the Italian Republic has failed to fulfil its obligations under Article 5 of that decision; |
2. |
| Orders the Italian Republic to pay the costs. |