Décisions

CJEC, 4th chamber, February 14, 2008, No C-419/06

COURT OF JUSTICE OF THE EUROPEAN COMMUNITIES

Judgment

PARTIES

Demandeur :

Commission of the European Communities

Défendeur :

Hellenic Republic

CJEC n° C-419/06

14 février 2008

Judgment of the Court (Fourth Chamber) of 14 February 2008 – Commission v Greece

(Case C‑419/06)

Failure of a Member State to fulfil obligations – State aid – Obligation to recover

1. Actions for failure to fulfil obligations – Failure to comply with the obligation to recover aid granted – Grounds of defence – Absolute impossibility of implementation – Assessment criteria (Art. 88(2) EC; Council Regulation No 659/1999, Art. 14(3)) (see paras 39-40)

2. State aid – Commission decision finding aid incompatible with the common market and ordering its repayment – Commission’s power to leave the calculation of the exact amount to be repaid to the national authorities (Art. 88(2) EC) (see paras 44, 46, 48)

3. Actions for failure to fulfil obligations – Non-compliance with a Commission decision concerning State aid – Grounds of defence – Legality of the decision called in question – Inadmissible (Arts 88(2) EC and 230 EC) (see para. 52)

4. State aid – Recovery of unlawful aid – Breach of principle of proportionality – None (Art. 88(2) EC) (see paras 53-55)

5. State aid – Recovery of unlawful aid – Application of national law – Conditions – Introduction of a procedure ensuring the immediate and effective implementation of the Commission’s decision (Art. 88(2), second para., EC; Council Regulation No 659/1999, Art. 14(3)) (see paras 58-59)

Re:

Failure of a Member State to fulfil obligations – Failure to take measures to comply with Commission Decision C(2005) 2706 of 14 September 2005 on the recovery of aid granted to Olympic Airlines.

Operative part

The Court:

Declares that, by not taking, within the prescribed period, all measures necessary to put an end to aid declared unlawful and incompatible with the common market by the Commission Decision of 14 September 2005 concerning State aid granted by Greece to Olympic Airways and Olympic Airlines, and to recover that aid from the recipients, the Hellenic Republic has failed to fulfil its obligations under Articles 2 to 4 of that decision;

Orders the Hellenic Republic to pay the costs.