Keywords
Summary

Keywords

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1. Aid granted by States - Concept - Grant of a tax exemption to certain undertakings by the public authorities - Included

(EEC Treaty, Art. 92(1))

2. Aid granted by States - Existing aid and new aid - Distinction also applicable to aid granted to undertakings covered by Article 90(2) of the Treaty - Consequence - Aid introduced in Spain before the date of accession - Classification of existing aid

(EEC Treaty, Arts 90(2), 92 and 93)

Summary

1. A measure by which the public authorities grant to certain undertakings a tax exemption which, although not involving a transfer of State resources, places the persons to whom the tax exemption applies in a more favourable financial situation than other taxpayers constitutes State aid within the meaning of Article 92(1) of the Treaty.

2. The distinction which Article 93 of the Treaty draws between existing aid and new aid is equally applicable to State aid granted to public undertakings responsible for the management of services of general economic interest or having the character of a revenue-producing monopoly, which are covered by Article 90(2). It follows that such aid, where it has the character of existing aid may, as long as the Commission has not found it to be incompatible with the common market, continue to be implemented, whether or not it is capable of falling outside the scope of the prohibition of Article 92 by virtue of Article 90(2) of the Treaty.

The rules on existing aid must be applied in the case of aid implemented in Spain by a law prior to the accession of that Member State to the European Communities.