Keywords
Summary

Keywords

1. State aid — Examination by the Commission — Determination of the recipient of aid — Actual benefit — Whether possible to take account of the wording of allocation clauses in the case of a loan and thus to classify as the beneficiary an entity other than the borrower — Whether necessary to classify in advance the State aid measure in respect of the borrower — Not necessary — (Art. 87(1) EC)

2. State aid — Commission decision declaring aid to be incompatible with the common market — Difficulties in implementation — Obligation on the Commission and the Member State to cooperate in seeking a solution consistent with the Treaty — (Arts 10 EC and 88(2), first subpara., EC)

3. Acts of the institutions — Statement of reasons — Obligation — Scope — Commission decision finding aid incompatible with the common market — (Arts 87 EC and 253 EC)

Summary

1. In order to determine the recipient of State aid, it is necessary to identify the undertakings which have actually benefited from it. In the case of a loan, the Commission is not precluded from taking the wording of the allocation clauses into account in order to determine that recipient and such an analysis could lead to the conclusion that that recipient is a different entity from the borrower. Given that Article 87(1) EC prohibits aid granted by a Member State or through State resources in any form whatsoever, it is not necessary when reaching such a conclusion to first make a finding that the intervention constitutes State aid to the borrower.

see paras 55-57

2. A Member State which encounters unforeseen difficulties in implementing a decision finding that aid is incompatible with the common market and ordering its recovery may submit those problems for consideration by the Commission. In such a case the Commission and the Member State concerned must, in accordance with the duty of genuine cooperation between Member States and Community institutions stated in particular in Article 10 EC, work together in good faith with a view to overcoming the difficulties whilst fully observing the Treaty provisions, in particular the provisions on aid.

see para. 99

3. Whilst in certain cases the very circumstances in which State aid has been granted may show that it is liable to affect trade between Member States and to distort or threaten to distort competition, the Commission must at least set out those circumstances in the statement of the reasons for its decision finding that that aid is incompatible with the common market.

see para. 103