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Europe Daily Bulletin No. 9700
Contents Publication in full By article 25 / 27
GENERAL NEWS / (eu) eu/court of justice

Court upholds Commission decision on state aid for Alitalia between 1996 and 2000

Brussels, 09/07/2008 (Agence Europe) - In a judgment delivered on Wednesday 7 July, the Court of First Instance confirmed the Commission decision to approve, subject to conditions, state aid for the airline Alitalia between 1996 and 2000. Alitalia appealed against the decision on the grounds of procedural defects and misapplication of the criterion of private investor. The Court dismissed the company's action and upheld all the conditions imposed by the Commission (case T-301/01). Although the aid in question has already been paid, the Court considered that the company had a legal interest in pursuing its action. According to some observers, Alitalia was entitled to seek to clarify the legality of certain conditions, with a view to more favourable assessment of future aid. A further state loan amounting to €300 million to the company is currently being investigated by the Commission. The Commission does not foresee the imposition of any conditions on this loan, it simply wants to check whether or not it constitutes state aid. If it proves to be so, it will not be allowed. The “one time, last time” principle, applied by the Commission since 2004, excludes the possibility of all state aid, with or without conditions, for Alitalia until 2011. (C.D./transl.rt)

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