The Italian Supreme Court orders the recovery of aid given to Sardinian hotels and dismisses arguments that the local government’s reassurances should provide the undertakings with protection due to legitimate expectations (Eurosarda Gestioni Turistiche)

On 26 February 2019, the Supreme Court delivered Decision No. 5594 in a case concerning the reimbursement of aid unlawfully received by Eurosarda Gestioni Turistiche S.r.l. from the Sardinian regional government. Background & facts of the case In Decision 2008/854, the Commission declares that the aid granted under the State aid scheme in support of initial investment in the Sardinian hotel industry, envisaged by Regional Law No. 9 of 11 March 1998, was incompatible with the common market. The aid scheme was authorised by the Commission on condition that investment was made after each undertaking concerned submitted the related application, whereas the Sardinian regional government granted some of the subsidies in question for investment projects that started before that time. The