Keywords
Summary

Keywords

1. State aid — Definition — Payment of costs of disposal of animal carcasses and slaughterhouse waste inherent in the economic activities of farmers and slaughterhouses — Included — (EC Treaty, Art. 92(1) (now, after amendment, Art. 87(1) EC))

2. State aid — Definition — Selective nature of the measure — (EC Treaty, Art. 92(1) (now, after amendment, Art. 87(1) EC))

3. State aid — Effect on trade between Member States — Assessment criteria — (EC Treaty, Art. 92 (now, after amendment, Art. 87 EC))

Summary

1. The notion of State aid can encompass not only positive benefits such as subsidies, loans or direct investment in the capital of enterprises, but also interventions which, in various forms, such as the supply of goods or services on preferential terms, mitigate the charges which are normally included in the budget of an undertaking and which therefore, without being subsidies in the strict sense of the word, are of the same character and have the same effect. In that regard Article 92(1) of the Treaty (now, after amendment, Article 87(1) EC) does not distinguish between measures of State intervention by reference to their causes or aims but defines them in relation to their effects.

Thus, since the financial cost incurred in the disposal of animal carcasses and slaughterhouse waste must be considered to be an inherent cost of the economic activities of farmers and slaughterhouses, intervention by the public authorities intended to relieve them of that financial burden appears to be an economic advantage liable to distort competition within the meaning of Article 92(1) of the Treaty.

see paras 28-29, 31, 33-34

2. Article 92(1) of the Treaty (now, after amendment, Article 87(1) EC) requires the determination of whether, under a particular statutory scheme, a State measure is such as to favour certain undertakings or the production of certain goods over others. If so, the measure satisfies the condition of selectivity which defines State aid as laid down by that provision.

The fact that the undertakings able to claim entitlement under that measure belong to different sectors of activity is not sufficient to call into question its selective nature and therefore, to rule out its classification as State aid.

see paras 35, 39

3. When aid granted by the State strengthens the position of an undertaking vis-à-vis other undertakings competing in intra-Community trade, the latter must be regarded as affected by that aid.

see para. 41