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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) [2007] EUECJ C-177/06 (20 September 2007) URL: https://www.bailii.org/eu/cases/EUECJ/2007/C17706.html Cite as: [2007] EUECJ C-177/6, [2007] ECR I-7689, [2007] EUECJ C-177/06 |
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(State Aid Aid scheme Incompatibility with the common market Commission decision Implementation Abolition of the aid scheme Cancellation of outstanding aid Recovery of aid made available Failure to fulfil obligations Defences Illegality of the decision Absolute impossibility of giving effect to a decision)
In Case C-177/06,
ACTION under Article 88(2) EC for failure to fulfil obligations, brought on 4 April 2006,
Commission of the European Communities, represented by F. Castillo de la Torre and C. Urraca Caviedes, acting as Agents, with an address for service in Luxembourg,
applicant,
Kingdom of Spain, represented by N. Díaz Abad, acting as Agent, with an address for service in Luxembourg,
defendant,
composed of K. Schiemann, acting for the President of the Second Chamber, L. Bay Larsen (Rapporteur), J.-C. Bonichot, T. von Danwitz and C. Toader, Judges,
Advocate General: E. Sharpston,
Registrar: Maria Ferreira, Principal Administrator,
having regard to the written procedure and further to the hearing on 26 April 2007,
having decided, after hearing the Advocate General, to proceed to judgment without an Opinion,
gives the following
Commission Decision 2003/28/EC of 20 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Álava (Spain) (OJ 2003 L 17, p. 20);
Commission Decision 2003/86/EC of 20 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Vizcaya (Spain) (OJ 2003 L 40, p. 11);
Commission Decision 2003/192/EC of 20 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Guipúzcoa (Spain) (OJ 2003 L 77) (together, 'the contested decisions'),
or, in any case, by having failed to communicate those measures in accordance with Article 4 of those decisions, the Kingdom of Spain has failed to fulfil its obligations under those provisions.
I The background to the dispute
they were formed with a minimum paid-up capital of ESP 20 million;
they invested a minimum amount of ESP 80 million between the date of creation of the company and 31 December 1995, and
they created at least 10 jobs within six months of the start of their business.
'Article 2
Spain shall abolish the aid scheme referred to in Article 1, if it is still in force.
Article 3
1. Spain shall take all necessary measures to recover from the recipients the aid referred to in Article 1, which has been unlawfully made available to them. Spain shall cancel all payment of outstanding aid.
2. Recovery shall be effected without delay in accordance with the procedures of national law, provided these allow the immediate and effective [execution (Decision 2003/28)]/[implementation (Decisions 2005/86 and 2003/192)] of this Decision ...
Article 4
Spain shall inform the Commission, within two months of the date of notification of this Decision, of the measures taken to comply with it.'
II Procedure before the Court
III The action
A Arguments of the parties
1. Arguments of the Commission
2. Arguments of the Spanish Government
a) Illegality of the contested decisions
b) Absence of a failure to fulfil obligations
i) Obligations to abolish aid schemes in so far as they were still in force and to cancel outstanding aid
ii) Obligations to recover aid already made available
B Findings of the Court
1. The plea based on the unlawfulness of the contested decisions
2. The existence of the failure to fulfil obligations
a) The pleas relating to the obligations to abolish aid schemes in so far as they were still in force and to cancel outstanding aid
b) The pleas relating to the obligation to recover aid already made available
'...recovery shall be effected without delay and in accordance with the procedures under the national law of the Member State concerned, provided that they allow the immediate and effective execution of the Commission's decision. To this effect and in the event of a procedure before national courts, the Member States concerned shall take all necessary steps which are available in their respective legal systems, including provisional measures, without prejudice to Community law.'
IV Costs
On those grounds, the Court (Second Chamber) hereby rules:
1. In failing to take the necessary measures within the prescribed period, to comply with Articles 2 and 3 of each of:
Commission Decision 2003/28/EC of 20 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Álava (Spain);
Commission Decision 2003/86/EC of 20 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Vizcaya (Spain);
Commission Decision 2003/192/EC of 2 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Guipúzcoa (Spain),
the Kingdom of Spain has failed to fulfil its obligations under those provisions;
2. The Kingdom of Spain is ordered to pay the costs.
[Signatures]
* Language of the case: Spanish.