Keywords
Summary

Keywords

1 . AIDS GRANTED BY STATES - EFFECT ON TRADE BETWEEN MEMBER STATES - CRITERIA

( EEC TREATY , ART . 92 )

2 . AIDS GRANTED BY STATES - PROHIBITION - DEROGATIONS - AIDS WHICH MAY BE CONSIDERED AS COMPATIBLE WITH THE COMMON MARKET - COMMISSION ' S DISCRETION - REFERENCE TO THE COMMUNITY CONTEXT

( EEC TREATY , ART . 92 ( 3 ))

Summary

1 . WHEN STATE FINANCIAL AID STRENGTHENS THE POSITION OF AN UNDERTAKING COMPARED WITH OTHER UNDERTAKINGS COMPETING IN INTRA-COMMUNITY TRADE THE LATTER MUST BE REGARDED AS AFFECTED BY THAT AID .

2 . IN THE APPLICATION OF ARTICLE 92 ( 3 ) OF THE EEC TREATY THE COMMISSION HAS A DISCRETION THE EXERCISE OF WHICH INVOLVES ECONOMIC AND SOCIAL ASSESSMENTS WHICH MUST BE MADE IN A COMMUNITY CONTEXT .

THE COMMISSION IS ENTITLED TO REGARD AN AID PROJECT AS NOT MEETING THE REQUIREMENTS OF ARTICLE 92 ( 3 ) ( B ) IF SUCH AN AID WOULD HAVE PERMITTED THE TRANSFER OF AN INVESTMENT WHICH COULD BE EFFECTED IN OTHER MEMBER STATES IN A LESS FAVOURABLE ECONOMIC SITUATION THAN THAT OF THE MEMBER STATE IN WHICH THE RECIPIENT UNDERTAKING IS LOCATED .