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You are here: BAILII >> Databases >> Court of Justice of the European Communities (including Court of First Instance Decisions) >> Rinaldo Piaggio (State aid) [1999] EUECJ C-295/97 (17 June 1999) URL: http://www.bailii.org/eu/cases/EUECJ/1999/C29597.html Cite as: [1999] ECR I-3735, EU:C:1999:313, [1999] EUECJ C-295/97, ECLI:EU:C:1999:313, [2000] 3 CMLR 825 |
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JUDGMENT OF THE COURT (Fifth Chamber)
17 June 1999 (1)
(State aid - Article 92 of the EC Treaty (now, after amendment, Article 87 EC) - New aid - Prior notification)
In Case C-295/97,
REFERENCE to the Court under Article 234 EC (ex Article 177) by the Tribunale di Genova (Italy) for a preliminary ruling in the proceedings pending before that court between
Industrie Aeronautiche e Meccaniche Rinaldo Piaggio SpA
and
International Factors Italia SpA (Ifitalia),
Dornier Luftfahrt GmbH,
Ministero della Difesa
on the interpretation of Article 92 of the EC Treaty (now, after amendment, Article 87 EC),
THE COURT (Fifth Chamber),
composed of: J.-P. Puissochet, President of the Chamber, P. Jann, C. Gulmann, D.A.O. Edward and M. Wathelet (Rapporteur), Judges,
Advocate General: D. Ruiz-Jarabo Colomer,
Registrar: L. Hewlett, Administrator,
after considering the written observations submitted on behalf of:
- Industrie Aeronautiche e Meccaniche Rinaldo Piaggio SpA, by Tomaso Galletto, of the Genoa Bar,
- Dornier Luftfahrt GmbH, by Antonio Fusillo and Alessandro Fusillo, both of the Rome Bar, and Gianfranco Nasuti, of the Genoa Bar,
- the Italian Government, by Umberto Leanza, Head of the Foreign Litigation Department at the Ministry of Foreign Affairs, acting as Agent, assisted by Oscar Fiumara, Avvocato dello Stato,
- the Commission of the European Communities, represented by Gérard Rozet, Legal Adviser, and Paolo Stancanelli, of its Legal Service, acting as Agents,
having regard to the Report for the Hearing,
after hearing the oral observations of Industrie Aeronautiche e Meccaniche Rinaldo Piaggio SpA, represented by Tomaso Galletto and Ivano Cavanna, of the Genoa Bar, Dornier Luftfahrt GmbH, represented by Antonio and Alessandro Fusillo, the Italian Government, represented by Oscar Fiumara, and the Commission, represented by Paolo Stancanelli, at the hearing on 27 January 1999,
after hearing the Opinion of the Advocate General at the sitting on 4 March 1999,
gives the following
Luftfahrt GmbH ('Dornier') concerning the repayment of a sum of ITL 30 028 894 382 paid by Piaggio to Dornier.
million, equivalent to at least 51% of the paid-up capital, to the State, to public bodies or to companies in which the State has a majority shareholding, by way of repayment of State aid which is unlawful or incompatible with the common market, or in connection with financing provided for technological innovation and research.
'1. Can a national court request the Court of Justice of the European Communities to rule directly on whether a legislative provision of a Member State is compatible with the provisions of Article 92 of the Treaty (State aid)?
2. If the answer is in the affirmative: can it be argued that, by Law No [95] of 3 April 1979 establishing a special administration procedure for large undertakings in a state of crisis, and in particular by the provisions of that Law set out in the grounds of the present order, the Italian State has granted to such undertakings as are covered by that Law (that is to say, large undertakings) aid contrary to Article 92 of the Treaty?'
The admissibility of the reference
during the suspect period preceding the declaration of insolvency. That question is a matter for the national court to determine.
Question 1
Classification as aid
effect, Case C-241/94 France v Commission [1996] ECR I-4551, paragraphs 23 and 24).
- has been permitted to continue trading in circumstances in which it would not have been permitted to do so if the rules of ordinary law relating to insolvency had been applied, or
- has enjoyed one or more advantages, such as a State guarantee, a reduced rate of tax, exemption from the obligation to pay fines and other pecuniary penalties or de facto waiver of public debts wholly or in part, which could not have been claimed by another insolvent undertaking under the application of the rules of ordinary law relating to insolvency.
The consequences of lack of prior notification
has been notified to the Commission and, if it has been so notified, before the Commission has made a decision acknowledging that the aid plan is compatible with the common market, or, if the Commission takes no decision within a period of two months from the notification, before that period has expired (see Lorenz, paragraph 4).
Within the framework of proceedings brought under Article 234 EC, the Court does not have jurisdiction to interpret national law or to give a ruling on the compatibility of a national measure with Article 92 of the Treaty. However, where an application is made to a national court that it should draw the appropriate inferences from infringement of the final sentence of Article 88(3) EC, it may seek clarification from the Commission on that point or, in accordance with the second and third paragraphs of Article 234 EC, it may or must refer a question to the Court for a preliminary ruling on the interpretation of Article 92 of the Treaty, in order to determine whether the State measures in question constitute State aid which should have been notified to the Commission.
Application to an undertaking of a system of the kind introduced by Law No 95/79, and derogating from the rules of ordinary law relating to insolvency, is to be regarded as giving rise to the grant of State aid, within the meaning of Article 92(1) of the Treaty, where it is established that the undertaking
- has been permitted to continue trading in circumstances in which it would not have been permitted to do so if the rules of ordinary law relating to insolvency had been applied, or
- has enjoyed one or more advantages, such as a State guarantee, a reduced rate of tax, exemption from the obligation to pay fines and other pecuniary penalties or de facto waiver of public debts wholly or in part, which could not have been claimed by another insolvent undertaking under the application of the rules of ordinary law relating to insolvency.
Since it is established that a system such as that established by Law No 95/79 is in itself capable of giving rise to the grant of State aid within the meaning of Article 92(1) of the Treaty, that system cannot be put into operation unless it has been notified to the Commission and, if it has been so notified, before the Commission has made a decision acknowledging that the aid plan is compatible with the common market, or, if the Commission takes no decision within a period of two months from the notification, before that period has expired.
Question 2
Costs
52. The costs incurred by the Italian Government and by the Commission, which have submitted observations to the Court, are not recoverable. Since these proceedings are, for the parties to the main proceedings, a step in the action pending before the national court, the decision on costs is a matter for that court.
On those grounds,
THE COURT (Fifth Chamber),
in answer to the questions referred to it by the Tribunale di Genova by order of 29 July 1997, hereby rules:
1. Within the framework of proceedings brought under Article 234 EC (ex Article 177), the Court does not have jurisdiction to interpret national law or to give a ruling on the compatibility of a national measure with Article 92 of the EC Treaty (now, after amendment, Article 87 EC). However, where an application is made to a national court that it should draw the appropriate inferences from infringement of the final sentence of Article 88(3) EC (ex Article 93(3)), it may seek clarification from the Commission on that point or, in accordance with the second and third paragraphs of Article 234 EC, it may or must refer a question to the Court for a preliminary ruling on the interpretation of Article 92 of the Treaty, in order to determine whether the State measures in question constitute State aid which should have been notified to the Commission.
2. Application to an undertaking of a system of the kind introduced by Italian Law No 95/79 of 3 April 1979, and derogating from the rules of ordinary law relating to insolvency, is to be regarded as giving rise to the grant of State aid, within the meaning of Article 92(1) of the Treaty, where it is established that the undertaking
- has been permitted to continue trading in circumstances in which it would not have been permitted to do so if the rules of ordinary law relating to insolvency had been applied, or
- has enjoyed one or more advantages, such as a State guarantee, a reduced rate of tax, exemption from the obligation to pay fines and
other pecuniary penalties or de facto waiver of public debts wholly or in part, which could not have been claimed by another insolvent undertaking under the application of the rules of ordinary law relating to insolvency.
3. Since it is established that a system such as that established by Law No 95/79 is in itself capable of giving rise to the grant of State aid within the meaning of Article 92(1) of the Treaty, that system cannot be put into operation unless it has been notified to the Commission and, if it has been so notified, before the Commission has made a decision acknowledging that the aid plan is compatible with the common market, or, if the Commission takes no decision within a period of two months from the notification, before that period has expired.
Puissochet
EdwardWathelet
|
Delivered in open court in Luxembourg on 17 June 1999.
R. Grass J.-P. Puissochet
Registrar President of the Fifth Chamber
1: Language of the case: Italian.