The EU Court of Justice confirms prior State aid cannot be taken into account by a public authority to justify further subsidies as market behaviour (Land Burgenland)

Maier, Martina; Werner, Philipp

Previous article The EU Court of Justice establishes that the privatisation of the Austrian bank has not been carried out in the light of the private investor in a market economy principle (Land Burgenland) Next article The EU Court of Justice recalls that except in the case of ‘absolute impossibility’, the provider State of illegal State aid is obliged to obtain recovery thereof, despite the potentially major economic consequences for the recipient of the aid (Alcoa)

24 Oct 2013

The EU Court of Justice confirms prior State aid cannot be taken into account by a public authority to justify further subsidies as market behaviour (Land Burgenland)

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Reference

EU Court of Justice, Land Burgenland, C-214/12 P, 24 October 2013

In its recent judgment in Land Burgenland (Joined Cases C-214/12 P, C-215/12 P and C-223/12 P) the Court of Justice of the European Union (CJEU) has confirmed that compatible State aid granted to an undertaking in the past must not be taken into account in the context of the Market Economy Operator Principle (MEOP) to justify further subsidies in the context of the Private Investor Test, even if the prior aid was declared compatible with State aid rules. Background In this case, Land Burgenland, an Austrian Province, privatised its regional bank, Bank Burgenland, via a public tender procedure. Two bidders answered the public call for tenders: a consortium that included Austrian and Ukrainian companies and the Austrian insurance company GRAWE. Land

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Authors

Martina Maier
Siemens (Brussels)

Belgium 8 contributions 9753 visits
Philipp Werner
Jones Day (Brussels)

Belgium 21 contributions 13287 visits

Quotation

Martina Maier, Philipp Werner, The EU Court of Justice confirms prior State aid cannot be taken into account by a public authority to justify further subsidies as market behaviour (Land Burgenland), 24 October 2013, e-Competitions October 2013, Art. N° 60157

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