Luxembourg, 26/09/2002 (Agence Europe) - The European court of Justice has partially cancelled the European Commission decision of 1998 that declared Spanish aid for buying industrial vehicles within the framework of the "Renove Industrial" plan, as illegal. The court case was brought by the Spanish government, which aimed to use the aid for improving road safety and the environment and was therefore considered as compatible with the common market. The Court points out that Commission policy on State Aid for environmental protection is defined in a section on the "environment". In this context, the Commission must provide a sufficient justification for its decision, which the Court claims it has not done so in this case.
The Court confirms that the case involved State Aid as understood in the sense of the treaty. The Commission will therefore have to re-examine its decision and provide suitable justification. If this is not forthcoming, the Court will confirm the Commission's analysis, namely that the aid constitutes State Aid in the sense of the treaty. The Advocate General, Alber, had confirmed the cancellation of this decision. Similarly, he has proposed the cancellation of the Commission's decision of 2000 condemning "Renove Industrial 1" aid as State Aid which is incompatible with the common market. European Judges are currently examining the matter.