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You are here: BAILII >> Databases >> Court of Justice of the European Communities (including Court of First Instance Decisions) >> Commission v Spain (State aid) [2002] EUECJ C-499/99 (02 July 2002) URL: https://www.bailii.org/eu/cases/EUECJ/2002/C49999.html Cite as: [2002] EUECJ C-499/99 |
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JUDGMENT OF THE COURT (Sixth Chamber)
2 July 2002 (1)
(Failure by a Member State to fulfil its obligations - State aid - Aid granted to companies in the Magefesa group - Commission Decisions 91/1/EEC and 1999/509/EC - Non-performance)
In Case C-499/99,
Commission of the European Communities, represented by G. Rozet and R. Vidal, acting as Agents, with an address for service in Luxembourg,
applicant,
v
Kingdom of Spain, represented by R. Silva de Lapuerta, acting as Agent, with an address for service in Luxembourg,
defendant,
APPLICATION for a declaration that, by failing to adopt, within the prescribed period, the measures necessary to comply with Commission Decision 91/1/EEC of 20 December 1989 concerning aids in Spain which the central and several autonomous governments granted to Magefesa, producer of domestic articles of stainless steel and small electric appliances (OJ 1991 L 5, p. 18) and Commission Decision 1999/509/EC of 14 October 1998 concerning aid granted by Spain to companies in the Magefesa group and their successors (OJ 1999 L 198, p. 15), declaring that certain aid to companies in the Magefesa group was granted unlawfully and is incompatible with the common market, the Kingdom of Spain has failed to fulfil its obligations under the fourth paragraph of Article 249 EC and Articles 2 and 3 of those decisions,
THE COURT (Sixth Chamber),
composed of: F. Macken, President of the Chamber, J.-P. Puissochet (Rapporteur), R. Schintgen, V. Skouris and J.N. Cunha Rodrigues, Judges,
Advocate General: J. Mischo,
Registrar: R. Grass,
having regard to the report of the Judge-Rapporteur,
after hearing the Opinion of the Advocate General at the sitting on 24 January 2002,
gives the following
Background to the litigation
The facts
The Commission's decisions
- loan guarantees amounting to ESP 1 580 thousand million;
- a loan of ESP 2 085 thousand million at other than market conditions;
- non-repayable subsidies amounting to ESP 1 095 thousand million;
- an interest subsidy estimated at ESP 9 million.
- by Indosa and Cunosa, until they were declared insolvent;
- by Migsa and Gursa, until they ceased to operate;
- by Indosa, after it was declared insolvent and until May 1997.
Decision 91/1
Actions of the Spanish Government
- as regards aid granted by Fogasa (National fund guaranteeing the rights of workers in the case of insolvency of their employer), a loan of ESP 2 085 thousand million at other than market conditions to the Magefesa group;
- as regards aid granted by the Autonomous Community of the Basque Country, a loan guarantee of ESP 300 million paid directly to Indosa, a loan guarantee of ESP 672 million to Ficodesa for companies belonging to the Magefesa group and an interest subsidy of ESP 9 million;
- as regards aid granted by the Autonomous Community of Cantabria, loan guarantees of ESP 512 million to Gemacasa for Cunosa and Gursa and non-repayable subsidies of ESP 262 million also granted to Gemacasa for Cunosa and Gursa;
- as regards aid granted by the Autonomous Community of Andalucia, loan guarantees of ESP 96 million granted to Manufacturas Damma for Migsa and non-repayable subsidies of ESP 29 million also granted to Manufacuras Damma for Migsa.
Impossibility of recovering the aid
Decision 1999/509
Steps taken by the Spanish Government
Social security debts
Fiscal debts
The alleged impossibility of recovering the aid
Costs
47. Under Article 69(2) of the Rules of Procedure, the unsuccessful party is to be ordered to pay the costs if they have been applied for in the successful party's pleadings. Since the Commission has applied for costs and the Kingdom of the Spain has been unsuccessful, the latter must be ordered to pay the costs.
On those grounds,
THE COURT (Sixth Chamber),
hereby:
1. Declares that, first, by failing to adopt, within the prescribed period, the necessary measures to comply with Commission Decision 91/1/EEC of 20 December 1989 concerning aids in Spain which the central and several autonomous governments granted to Magefesa, producer of domestic articles of stainless steel and small electric appliances, in so far as it declared the aid granted to Industrias Domésticas SA (Indosa), Manufacturas Gur SA (Gursa), Manufacturas Inoxidables Gibraltar SA (Migsa) and Cuberta del Norte SA (Cunosa) illegal and incompatible with the common market and with Commission Decision 1999/509/EC of 14 October 1998 concerning aid granted by Spain to companies in the Magefesa group and their successors, in so far as it declared the aid granted to Gursa, Migsa and Cunosa illegal and incompatible with the common market, and second, by failing to inform the Commission, within the prescribed period, of measures taken to implement Decision 1999/509 in so far as it declared aid granted to Indosa illegal and incompatible with the common market, the Kingdom of Spain has failed to fulfil its obligations under the fourth paragraph of Article 249 EC and Articles 2 and 3 of those decisions;
2. For the rest, dismisses the Commission's action;
3. Orders the Kingdom of Spain to pay the costs.
Macken
Skouris Cunha Rodrigues
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Delivered in open court in Luxembourg on 2 July 2002.
R. Grass F. Macken
Registrar President of the Sixth Chamber
1: Language of the case: Spanish.