The Court of Justice of the European Union (CJEU) dismissed the appeal brought by the low-cost airline Ryanair against the Spanish fund to support the solvency of strategic non-financial undertakings, intended to respond to the serious disruption to the economy caused by the Covid-19 pandemic, in a judgment handed down on Thursday 6 June (Case C-441/21 P).
The Irish airline is challenging the EU General Court’s ruling of May 2021 dismissing its appeal (case T-628/20 - see EUROPE 12722/24) against the European Commission’s decision of July 2020 approving this €10 billion aid scheme until 2021 (see EUROPE 12540/9).
The CJEU confirms the General Court’s analysis that the aid scheme in question was proportionate and did not breach the principle of non-discrimination on grounds of nationality. EU law allows for differences in treatment between companies in the case of aid intended to remedy a serious disturbance in the economy of a Member State.
According to the European Court, Ryanair has failed to demonstrate that the Spanish scheme produced restrictive effects that went beyond the effects inherent in this type of aid and that the scheme therefore constituted an obstacle to the freedom to provide services and the freedom of establishment.
The Court adds that the General Court also correctly held that the Commission was not obliged to weigh the beneficial effects of the aid scheme at issue against its negative effects on trading conditions between Member States and on the maintenance of undistorted competition. It concludes that the Spanish scheme is in the common interest of the Union.
See the Court’s judgment: https://aeur.eu/f/cjz (Original version in French by Mathieu Bion)