The Italian Council of State overturns a decision which blocked a recovery of State aid order by the EU commission on the grounds that there was negligible room for discretion by national authorities, thus the Regional Administrative Court of Veneto was acting ultra vires by blocking it (INPS)

On 16 June 2015, the Council of State delivered Decision No. 3036 in which it partially upheld the appeal brought by the National Social Security Authority (“INPS”) against a decision issued by the Regional Administrative Court of Veneto (“TAR Veneto”). The TAR Veneto decision annulled certain notices through which INPS had implemented a Commission recovery order. Background & facts of the case Art. 5-bis of Law Decree 96/95 introduced certain tax benefits for employers operating in Venice and Chioggia between 1995 and 1997. The Commission was not notified accordingly and, after investigations, declared that when the benefits were granted to companies other than SMEs and companies located outside the areas eligible for exemption under Art. 107(3)(c) TFEU, they constituted unlawful