Keywords
Summary

Keywords

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1 . COMMUNITY LAW - PRINCIPLES - RIGHT TO A FAIR HEARING - APPLICATION TO ADMINISTRATIVE PROCEDURES INITIATED BY THE COMMISSION - EXAMINATION OF AID SCHEMES - SCOPE

( EEC TREATY, ART . 93*(2 )*)

2 . AID GRANTED BY MEMBER STATES - CONCEPT - SECTORAL AID FINANCED BY A PARAFISCAL CHARGE LEVIED ON NATIONAL PRODUCTION IN THE SECTOR IN QUESTION - ARRANGEMENT OF NO CONSEQUENCE FOR THE PURPOSE OF THE APPLICATION OF ARTICLE 92 OF THE TREATY

( EEC TREATY, ART . 92 )

3 . AID GRANTED BY MEMBER STATES - PROHIBITION - DEROGATIONS - ADVERSE EFFECT ON TRADING CONDITIONS TO AN EXTENT CONTRARY TO THE COMMON INTEREST

( EEC TREATY, ART . 92*(3)*(C )*)

Summary

1 . OBSERVANCE OF THE RIGHT TO BE HEARD IS, IN ALL PROCEEDINGS INITIATED AGAINST A PERSON WHICH ARE LIABLE TO CULMINATE IN A MEASURE ADVERSELY AFFECTING THAT PERSON, A FUNDAMENTAL PRINCIPLE OF COMMUNITY LAW WHICH MUST BE GUARANTEED EVEN IN THE ABSENCE OF ANY RULES GOVERNING THE PROCEDURE IN QUESTION .

APPLIED TO THE COMMISSION' S EXAMINATION OF AID SCHEMES, THAT PRINCIPLE REQUIRES THAT THE MEMBER STATE IN QUESTION MUST BE ENABLED EFFECTIVELY TO MAKE KNOWN ITS VIEWS ON THE OBSERVATIONS WHICH INTERESTED THIRD PARTIES HAVE SUBMITTED UNDER ARTICLE 93*(2 ) OF THE TREATY AND ON WHICH THE COMMISSION PROPOSES TO BASE ITS DECISION . IN SO FAR AS THE MEMBER STATE HAS NOT BEEN AFFORDED THE OPPORTUNITY TO COMMENT ON THOSE OBSERVATIONS, THE COMMISSION MAY NOT USE THEM IN ITS DECISION AGAINST THAT STATE WITHOUT INFRINGING THE RIGHT TO BE HEARD . FOR SUCH AN INFRINGEMENT TO RESULT IN AN ANNULMENT IT MUST, HOWEVER, BE ESTABLISHED THAT, HAD IT NOT BEEN FOR THAT IRREGULARITY, THE OUTCOME OF THE PROCEDURE MIGHT HAVE BEEN DIFFERENT .

2 . THE MERE FACT THAT A SYSTEM OF SUBSIDIES WHICH BENEFITS CERTAIN TRADERS IN A SPECIFIC SECTOR IS FINANCED BY A PARAFISCAL CHARGE LEVIED ON EVERY SUPPLY OF NATIONAL GOODS IN THAT SECTOR IS NOT SUFFICIENT TO DIVEST THE SYSTEM OF ITS CHARACTER AS AID GRANTED BY A MEMBER STATE WITHIN THE MEANING OF ARTICLE 92 OF THE TREATY . THE ASSESSMENT OF THAT SYSTEM FOR THE PURPOSES OF ARTICLE 92 DEPENDS ON THE DETAILED ARRANGEMENTS UNDER AND THE EFFECTS OF THE SYSTEM .

3 . THE COMMISSION DOES NOT EXCEED THE LIMITS OF ITS DISCRETION IN TAKING THE VIEW THAT EVEN RELATIVELY LITTLE AID MAY NEVERTHELESS ADVERSELY AFFECT TRADING CONDITIONS TO AN EXTENT CONTRARY TO THE COMMON INTEREST FOR THE PURPOSES OF ARTICLE 92*(3)*(C ) OF THE TREATY WHEN, IN A SECTOR CHARACTERIZED BY ITS NARROW PROFIT MARGINS, THAT AID HELPS THE RECIPIENT UNDERTAKINGS TO FINANCE INVESTMENTS IN TECHNOLOGICALLY ADVANCED EQUIPMENT SO AS TO RAISE PRODUCTIVITY AND PRODUCT-QUALITY, THEREBY ENABLING THE SECTOR IN QUESTION TO COMPETE MORE EFFECTIVELY WITH IMPORTS, WHICH COME MAINLY FROM THE OTHER MEMBER STATES .