12.4.2008

EN

Official Journal of the European Union

C 92/35

(Case T-42/08)

(2008/C 92/71)

Language of the case: English

Parties

Applicant: Shetland Islands Council (represented by: E. Whiteford, Barrister, R. Murray, Solicitor and R. Thompson, QC)

Defendant: Commission of the European Communities

Form of order sought

—Annulment of Articles 1(2), 3, 4 and 5 of the decision; and

—the costs of this application.

Pleas in law and main arguments

The applicant is a public authority that made payments to the fisheries sector under the scope of two general aid measures, named ‘Aid to Fish Catching and Processing Industry’ and ‘Aid to the Fish Farming Industry’ consisting of different types of aid schemes. The Commission found that the aid which the United Kingdom implemented on the basis of the ‘Fishing Vessel Modernisation Scheme’ was incompatible with the common market, in so far as it concerned aid granted for the modernisation projects concerning capacity in terms of tonnage or power.

By means of its application, the applicant seeks partial annulment pursuant to Article 230 EC of Commission Decision C 37/2006 (ex NN 91/2005) of 13 November 2007 concerning the Fishing Vessel Modernisation Scheme implemented in the United Kingdom. In particular, the applicant seeks annulment of Article 1(2), 3, 4, and 5 of the contested decision on two grounds:

(1)The Commission allegedly erred in law in finding that payments for replacement or improvement of engines that do not affect the gross tonnage or power of any vessel ‘concern capacity in terms of tonnage or power’ within the meaning of Article 9(1)(c)(i) of Regulation (EC) No 2792/1999 (1), and are thus incompatible with the common market;

(2)The Commission erred in law in finding that recovery of payments would be compatible with:

(a)Article 14(1) of Council Regulation (EC) No 659/1999 (2);

(b)the general principles of legal certainty and the protection of legitimate expectations and of equality of treatment.

(1) Council Regulation (EC) No 2792/1999 of 17 December 1999 laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector (OJ L 337, p. 10).

(2) Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 93 of the EC Treaty (OJ L 83, p. 1).