Press Release: State aid: Commission brings actions before the Court of Justice against Italy and Belgium for failing to recover illegal state aid

The European Commission on 25 January 2006 decided to bring proceedings before the Court of Justice against Italy and Belgium for failing to comply with two decisions declaring aid incompatible and ordering it to be recovered. In the case of Italy, the decision of 20 October 2004 found that the aid granted to firms carrying out investment in municipalities affected by natural disasters in 2002 was incompatible and had to be recovered from the recipients (see IP/04/1253). In the case of Belgium the decision of 24 April 2002 declared the aid granted by the Walloon authorities to Beaulieu to be incompatible and ordered that it be recovered from the recipient (see IP/02/608). In neither case had any of the aid been recovered. The European Commission therefore decided to refer the cases to the Court to have its decisions enforced.