Keywords
Summary

Keywords

1. State aid - General aid scheme approved by the Commission - Individual aid purporting to be covered by the approval - Scrutiny by the Commission - Failure to comply with the conditions of the decision approving the scheme - Application of the scheme of new aid

(Art. 88(1) to (3) EC)

2. State aid - Prohibition - Derogations - Criteria governing derogations - Incompatibility with the common market of any aid not complying with those criteria - Role of the Commission - Ensuring compliance with the criteria for derogation

(Art. 87(1) and (3)(e) EC)

Summary

1. The rules of special procedure, laid down by Article 88 EC, which require the Commission to keep State aid under constant review vary according to whether the aid at issue constitutes existing aid or new aid. While the former is subject to Article 88(1) and (2) EC, the latter is governed by Article 88(2) and (3) EC.

Where the Commission finds that aid alleged to have been granted in pursuance of a previously authorised scheme of aid does not comply with the conditions laid down in its decision approving the scheme and is therefore not covered by it, that aid must be regarded as new aid.

If, when aid is granted in pursuance of a previously authorised scheme, the Member State does not comply with the conditions to which the Commission made its decision approving the scheme subject, since the aid paid is new aid, the Commission is obliged to institute the special procedure provided for by the first subparagraph of Article 88(2) EC.

( see paras 22-25 )

2. Where State aid is covered by derogating rules adopted under Article 87(3)(e) EC, that aid is, as a matter of principle, at the outset incompatible with the common market and is considered to be compatible with the common market only on condition that it complies with the criteria for derogation contained in the decision approving that system.

Accordingly, where the Commission finds that aid authorised under that scheme is no longer covered by it, it is not required to reassess its compatibility in relation to the criteria set out in Article 87(1) EC or to determine whether it affects trade between Member States and distorts competition.

( see paras 47-48 )