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Article in EStAL: ​A New Boost to National Recovery? · Case C 349/17 Eesti Pagar · Annotation

Partner Svein Terje Tveit has written the article "​A New Boost to National Recovery?". On 5 March 2019, the Grand Chamber of the Court of Justice of the European Union (CJ) issued an important ruling clarifying the scope of the national authorities’ obligation to recover unlawful State aid. The judgement could trigger further national enforcement of the state aid rules.

Annotation on the Judgment of the Court (Grand Chamber) of 5 March 2019 in Case C‑349/17 Eesti Pagar AS v Ettevõtluse Arendamise Sihtasutus, Majandus- ja Kommunikatsiooniministeerium

On 5 March 2019, the Grand Chamber of the Court of Justice of the European Union (CJ) issued an important ruling clarifying the scope of the national authorities’ obligation to recover unlawful State aid and the test for ‘incentive effect’ — a requirement for an aid measure to benefit from the General Block Exemption Regulation (GBER). The CJ confirms that national authorities must recover unlawful State aid also in cases where the aid is granted (wrongfully) under the GBER as regional investment aid and the Commission has not adopted any Decision. The aid beneficiary may not rely on the principle of protection of legitimate expectations even if the granting authority had recommended the aid beneficiary to apply for aid knowing that work on the project had begun before the aid application was submitted. In cases where the EU rules on limitation period and interests are not directly applicable, national rules apply, so that the national authorities must seek full recovery of the unlawful aid and thereby ensure the effectiveness of State aid rules.

The article is available here.

Author: Svein Terje Tveit
Year: 2019
Publication: 
European State Aid Law Quarterly, volume 18 (2019), Issue 2

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