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You are here: BAILII >> Databases >> Court of Justice of the European Communities (including Court of First Instance Decisions) >> Commission v Italy (State aid) [2004] EUECJ C-99/02 (01 April 2004) URL: https://www.bailii.org/eu/cases/EUECJ/2004/C9902.html Cite as: [2004] EUECJ C-99/2, [2004] EUECJ C-99/02 |
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JUDGMENT OF THE COURT (Fifth Chamber)
1 April 2004
(1)
(Failure of a Member State to fulfil obligations - State aid - Second paragraph of Article 88(2) EC - Aids incompatible with the common market - Obligation to recover - Absolute impossibility of implementation)
In Case C-99/02, Commission of the European Communities, represented by V. Di Bucci, acting as Agent, with an address for service in Luxembourg,applicant,
v
Italian Republic, represented by I. Braguglia, acting as Agent, assisted by O. Fiumara, vice avvocato generale dello Stato, with an address for service in Luxembourg,defendant,
APPLICATION for a declaration that, by not adopting within the time-limit prescribed all measures necessary for the recovery from the recipients of the aid which was found, according to Commission Decision 2000/128/EC of 11 May 1999 concerning aid granted by Italy to promote employment (OJ 2000 L 42, p. 1), notified on 4 June 1999, to be unlawful and incompatible with the common market, and in any event by not notifying the Commission of such measures, the Italian Republic had failed to fulfil its obligations under Articles 3 and 4 of that decision and under the EC Treaty,THE COURT (Fifth Chamber),
having regard to the Report for the Hearing,
after hearing oral argument from the parties at the hearing on 18 September 2003, at which the Commission was represented by E. Montaguti, acting as Agent, and the Italian Republic by O. Fiumara, vice avvocato generale dello Stato, and A. Morrone,having decided, after hearing the Advocate General, to proceed to judgment without an Opinion,
gives the following
' Article 1 1. The aid granted unlawfully by Italy since November 1995 for employment under the training and work experience contracts provided for in Laws Nos 863/84, 407/90, 169/91 and 451/94 is compatible with the common market and the EEA Agreement provided that it concerns: - the creation of jobs in the recipient firm for persons who have not yet found employment or have lost their previous employment within the meaning of the guidelines on aid to employment, - the employment of workers experiencing particular difficulties in entering or re-entering the labour market. For the purposes of this Decision, workers experiencing particular difficulties in entering or re-entering the labour market shall mean young persons under the age of 25, [university graduates] up to the age of 29 and the long-term unemployed, i.e. out of employment for more than one year 2. Aid for training and work experience contracts which does not satisfy the conditions set out in paragraph 1 is incompatible with the common market. Article 2 1. The aid granted by Italy under Article 15 of Law No 196/97 for the conversion of training and work experience contracts into open-ended contracts is compatible with the common market and the EEA Agreement provided that it complies with the net job creation requirement as defined in the Community guidelines on aid to employment. The workforce employed by a firm shall be calculated without taking account of jobs resulting from the conversion and jobs created through fixed-term contracts or not guaranteeing sufficiently stable employment. 2. Aid for the conversion of training and work experience contracts into open-ended contracts which does not satisfy the requirement laid down in paragraph 1 is incompatible with the common market. Article 3 Italy shall take all necessary measures to recover from the recipients the aid which does not satisfy the conditions of Articles 1 and 2 and has already been unlawfully paid. Repayment shall be made in accordance with the procedures of Italian law. The amounts to be repaid shall bear interest from the date on which the aid was paid until the date on which it is effectively recovered. The interest shall be calculated on the basis of the reference rate used to calculate the net grant equivalent of regional aid. Article 4 Italy shall inform the Commission within two months of the date of notification of this Decision of the measures it has taken to comply herewith.'
Findings of the Court
On those grounds,
THE COURT (Fifth Chamber)
hereby 1) Declares that, by not adopting within the time-limit prescribed all measures necessary for the recovery from the recipients of the aid which was found, according to Commission Decision 2000/128/EC of 11 May 1999 concerning aid granted by Italy to promote employment, to be unlawful and incompatible with the common market, the Italian Republic has failed to fulfil its obligations under Articles 3 and 4 of that decision; 2) Orders the Italian Republic to pay the costs.
Jann |
Timmermans |
Rosas |
La Pergola |
von Bahr |
|
R. Grass |
V. Skouris |
Registrar |
President |
1 - Language of the case: Italian.