Appropriate Measures to Remedy the Consequences of Unlawful State Aid
14 Pages Posted: 20 Feb 2010
Date Written: 2009
This analysis deals with the judgment of 12 February 2008 of the European Court of Justice in the CELF/SIDE case and its effects on the enforcement of European State aid law. The Court answered two questions referred to it by the French Conseil d’État in an ongoing dispute about French State aid to book export centre CELF. According to the Court, Community law requires a national court to order appropriate measures to remedy the consequences of unlawful State aid. However, Community law does not impose an obligation of full recovery of unlawful aid in the event that the Commission subsequently declares the aid in question compatible with the common market. Are the measures chosen by the Court really appropriate to remedy the consequences of unlawful State aid? This analysis shows that the Court’s judgment could have negative effects on the effectiveness of the enforcement of European State aid law.
Keywords: State Aid, EU Law, Enforcement, Recovery of Unlawful Aid
JEL Classification: K23, K33
Suggested Citation: Suggested Citation