CASE COMMENTS: STATE AID - EUROPEAN UNION – EMPLOYMENT AID – APPLICABILITY TO AN UNDERTAKING PROVIDING LOCAL PUBLIC TRANSPORT SERVICES

Employment aid: The Court of Justice of the European Union considers that the European Commission’s Decision 2000/128/EC of 11 May 1999 concerning aid granted by Italy to promote employment is applicable to an undertaking which, on the basis of a direct and exclusive award by a municipality, has provided local public transport services and has benefited from reductions in social security contributions under national legislation which was declared by that decision to be incompatible, in part, with the common market (Istituto nazionale della previdenza sociale / Azienda Napoletana Mobilità)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The facts underlying the case giving rise to the judgment under comment are particularly old. They go back to the adoption in 1984 by Italy of legislation to promote employment, which introduced a "training and work contract". This was a fixed-term contract, with a training period, for the recruitment of unemployed persons not over 29 years of age. Recruitment under this contract was exempt for two years from social security contributions payable by the employer. This exemption applied uniformly, automatically and non-discretionarily throughout the national territory. In 1990 and 1994, this legislation was amended, in particular by allowing the regional

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  • European Court of Justice (Luxembourg)

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Raphaël Vuitton, Employment aid: The Court of Justice of the European Union considers that the European Commission’s Decision 2000/128/EC of 11 May 1999 concerning aid granted by Italy to promote employment is applicable to an undertaking which, on the basis of a direct and exclusive award by a municipality, has provided local public transport services and has benefited from reductions in social security contributions under national legislation which was declared by that decision to be incompatible, in part, with the common market (Istituto nazionale della previdenza sociale / Azienda Napoletana Mobilità), 29 July 2019, Concurrences N° 4-2019, Art. N° 92423, pp. 138-140

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