CASE COMMENTS: STATE AIDS – GUARANTEE – EFFECT ON TRADE – SERIOUS DISTURBANCE IN THE ECONOMY OF A MEMBER STATE

Incompatible aid : The Court of Justice of the European Union confirms the validity of the Commission’s decision, which declares incompatible with the internal market an aid unduly prolonged to a bank in difficulty, although this bank had ceased its activity since the granting of the aid (Banco Privado Português)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. CJEU, 5 March 2015, Banco Privado Português and Massa Insolvente do Banco Privado Português, aff.C-667/13 In March 2009, in the context of the financial crisis, the Commission provisionally authorised, for a period of 6 months, a (low-interest) Portuguese state guarantee in favour of Banco Privado Português (BPP) to cover a loan granted to BPP by 6 Portuguese banks. This authorisation was conditional on the submission of a restructuring plan for BPP within six months. The loan was to be used only to reimburse depositors and other creditors, and not to cover the debts of other group entities. No restructuring plan was submitted by the Portuguese authorities,

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  • European Commission - Legal Service (Brussels)

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Bruno Stromsky, Incompatible aid : The Court of Justice of the European Union confirms the validity of the Commission’s decision, which declares incompatible with the internal market an aid unduly prolonged to a bank in difficulty, although this bank had ceased its activity since the granting of the aid (Banco Privado Português), 5 March 2015, Concurrences N° 2-2015, Art. N° 73093, pp. 135-137

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