Brussels, 09/04/2014 (Agence Europe) - On Wednesday, 9 April, the Court upheld the Commission Decision (T-150/12) ordering Greece to recover aid granted to cereal producers and agricultural cooperatives in 2008.
According to the Greek authorities, a surplus of maize and wheat in 2008 led to a fall in prices. In order to ensure a minimum income for farmers, 100% state-guaranteed loans amounting to €150 million together with interest-rate subsidies were granted by several ministerial decisions to 57 Unions of Agricultural Cooperatives (“UACs”). The Commission found that those loans conferred an advantage, selectively, that entailed a distortion of competition and affected trade between member states. In its decision of 25 January 2012, the Commission ordered Greece to recover the aid granted in 2008 to cereal producers and to agricultural cooperatives in the sector. Greece sought the annulment of the Commission's decision before the Court. By its judgment, the Court has dismissed the action in its entirety.
The Court points out that state intervention, in any form whatsoever, which may favour certain undertakings or which confers an economic advantage that an undertaking would not have obtained under normal market conditions constitute state aid. That is the case as regards interest-rate subsidies. In principle, state aid which reduces the costs that an undertaking would ordinarily have to pay in the course of its normal business distorts competitive conditions. With regard to the nature of the aid granted, the Court found that the selective financial advantages obtained by the interest-rate subsidies and the full guarantee of the loan - though relatively minor - could not have been obtained under normal market conditions. It also said that the aid is liable to affect trade between member states and distort competition. (LC)