The Italian Council of State overturns a ruling which annulled a EU Commission State aid recovery order on the grounds of limitation periods because such a ruling undermines the European legal principle of effectiveness (INPS)

On 16 June 2015, the Council of State delivered Decision No. 3036 in the appeal brought by the National Social Security Authority (“INPS”) against a decision issued by TAR Veneto that annulled orders to repay unlawful, incompatible aid. Background & facts of the case Between 1995 and 1997, Italy introduced [1] a series of social security benefits for companies operating in Venice and Chioggia without first notifying the Commission. The Commission ruled (in Decision 2000/394/EC) that the benefits constituted unlawful, incompatible aid when granted to companies other than SMEs and companies located outside the areas entitled to the aid. The companies concerned appealed Decision 2000/394/EC, but the Court of Justice