Memo: State aid: Commission welcomes Court ruling on recovery of illegal aid

The European Court of Justice (ECJ) ruled that France has failed to fulfil its obligations under EC Treaty state aid rules by failing to execute a Commission decision adopted on 16 December 2003. This decision ordered France to abolish an aid scheme granting tax exemptions for the takeover of firms in difficulties and to recover the illegal aid already granted from the beneficiaries. The Court fully confirmed the Commission's decision and rejected all pleas brought by France. The ruling is important, because the Court defined clear criteria to assess the correct implementation of a recovery decision.

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