CASE COMMENTS: PUBLIC ACTIONS - FRANCE - LIABILITY OF THE PUBLIC AUTHORITY - ABUSIVE SUPPORT

Liability: The French Supreme Administrative Court rules that the liability of a public entity for the granting of public aid is not subject to the requirement of gross negligence (AOM Air Liberté)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. In a decision of 27 November 2020, the Conseil d'Etat ruled for the first time on the conditions under which a public entity granting financial aid is liable to the creditors of the supported company, outside the specific case of de facto management. In 2002, the State granted AOM Air Liberté a loan from the Economic and Social Development Fund amounting to EUR 16,5 million for a period of six months, which was subsequently increased to EUR 30,5 million and extended for a further eight months, in order to enable France's second-largest airline group to overcome serious financial difficulties. AOM Air Liberté also benefited from a moratorium on the social

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  • Strasbourg Institute of Political Sciences

Quotation

Jean-Philippe Kovar, Liability: The French Supreme Administrative Court rules that the liability of a public entity for the granting of public aid is not subject to the requirement of gross negligence (AOM Air Liberté), 27 November 2020, Concurrences N° 2-2021, Art. N° 100595, pp. 204-205

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