In all cases, when state aid is extended either by a court decision or by a national authority, it must be considered as new aid and notification of it must be made to the European Commission, the Court of Justice of the EU said on Wednesday 26 October, overturning a previous ruling.
The Court was asked to rule on a case (C-590/14 P) involving former state aid in Greece. This aid was initially to last for a stipulated period. However, following a court order, it ran beyond the period set without the Greek state informing the Commission. The Commission took the view that the aid was then new aid which could no longer be considered compatible with the internal market since no notification had been provided.
In a 2014 ruling, the General Court of the EU annulled the Commission’s decision, holding that that aid must be classified as existing aid. Under this interpretation, the Greek state was under no obligation to notify the extension.
The Court has now annulled the General Court ruling and referred the case back to it for further consideration. The Court concluded that there had been two errors in law. Firstly, extension of the duration of existing aid must be regarded as an alteration of existing aid and constitutes, therefore, new aid. And secondly, the General Court should not have taken the view that, on the grounds that they are ruling in interlocutory proceedings (as in the present case), the national courts may escape the obligations incumbent upon them in the context of the control of state aid. The Commission must be informed of any change to a contract relating to state aid. (Original version in French by Jan Kordys)