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Judgment of the Court (First Chamber) of 1 June 2006. # Commission of the European Communities v Italian Republic. # Failure of a Member State to fulfil obligations - State aid - Second subparagraph of Article 88(2) EC - Aid incompatible with the common market - Duty to recover -Non-fulfilment. # Case C-207/05.

ECLI:EU:C:2006:366

62005CJ0207

June 1, 2006
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(Case C-207/05)

Failure of a Member State to fulfil obligations – State aid – Second subparagraph of Article 88(2) EC – Aid incompatible with the common market – Duty to recover – Non-fulfilment

3. State aid – Recovery of unlawful aid (Art. 88(2), first subpara., EC) (see para. 44)

4. Actions for failure to fulfil obligation – Failure to comply with a decision of the Commission relating to State aid – Grounds of defence (Arts 10 EC and 88(2), EC) (see paras 45, 47-48, 50)

Re:

Failure of a Member State to fulfil obligations – Breach of Articles 3 and 4 of Commission Decision 2003/193/EC of 5 June 2002 on State aid granted by Italy in the form of tax exemptions and subsidised loans to public utilities with a majority public capital holding [C-27/99 (ex NN 69/98)] (OJ 2003 L 77, p. 21) – Failure to adopt, within the prescribed period, the necessary measures to recover aid declared incompatible with the common market.

Operative part

The Court:

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