A German Administrative Court decides that if an aid measure that is found to formally infringe EC law cannot automatically be challenged for recovery then the infringement justifies the suspension of any further payment of that aid to the beneficiary (Betriebsstätte des Tourismusgewerbes)

Brief description of the facts and legal issues The Potsdam Administrative Court holds that, if an aid measure that is found to formally infringe EC law cannot automatically be challenged for recovery, the infringement justifies the suspension of any further payment of that aid to the beneficiary (Betriebsstätte des Tourismusgewerbes Berlin-Potsdam) Parties: The applicant: Property developer; The defendant: German local administration. Factual background: The applicant's predecessor applied for State aid in the form of a lump sum in order to erect business premises for use by a tourism office. On 9 May 2000, the local administration granted aid amounting to DM 5.380.000 covering the period 1 January 1998 to 31 August 2001. That period was later extended until 30 September 2002.

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Rainer Wessely, Alix Müller-Rappard, A German Administrative Court decides that if an aid measure that is found to formally infringe EC law cannot automatically be challenged for recovery then the infringement justifies the suspension of any further payment of that aid to the beneficiary (Betriebsstätte des Tourismusgewerbes), 26 August 2008, e-Competitions Bulletin Economic assessment of damages, Art. N° 26928

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