The Italian Council of State rules that the national res judicata principle cannot be used to shield a company from an action to recover illegal State aid because of the primacy of EU law (INPS)

On 21 July 2015, the Council of State delivered Decision No. 3596 concerning the appeal brought by the National Social Security Authority (“INPS”) against Decision 897/2014 issued by TAR Veneto, Division I, which annulled the obligation for the company Principessa S.r.l. to repay unlawful, incompatible aid. Background & facts of the case The decision is part of a series of actions brought following Commission Decision 2000/394/EC, which declared the social security benefits granted to companies in Venice and Chioggia unlawful in certain circumstances. Based on the Commission’s decision, which was upheld by the Court of Justice, [1]