CASE COMMENTS: STATE AID – EUROPEAN UNION - REGIONAL INVESTMENT AID – GENERAL EXEMPTION BY CATEGORY – PROPORTIONALITY

Proportionality: The Court of Justice of the European Union rules that the European Commission could reduce the aid amount compatible with the internal market to the amount strictly necessary to ensure that an investment project could be carried out in an assisted region, although a higher amount of aid could have been covered by the general exemption by category (BMW)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The judgment on appeal of 29 July 2019 follows the judgment of the Court of First Instance of 12 September 2017 (Trib. EU, BMW, case T-671/14 ; see Concurrences No. 4-2017), by which the Court of First Instance had upheld the validity of a Commission decision declaring investment aid granted by Germany to BMW to be partly incompatible. A major investment project was involved. With the aid that Germany intended to grant, BMW would establish a production site for electric and hybrid vehicles in Leipzig instead of Munich. The Commission declared the aid compatible to the tune of around €17 million and incompatible with the internal market for the part

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  • European Commission - Legal Service (Brussels)

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Bruno Stromsky, Proportionality: The Court of Justice of the European Union rules that the European Commission could reduce the aid amount compatible with the internal market to the amount strictly necessary to ensure that an investment project could be carried out in an assisted region, although a higher amount of aid could have been covered by the general exemption by category (BMW) , 29 July 2019, Concurrences N° 4-2019, Art. N° 92421, pp. 136-138

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