The EU Court of Justice admits the suspension of a new aid measure, awaiting the effective recovery of formerly granted incompatible aid to the same beneficiary (Textilwerke Deggendorf)

On 15 May 1997, the European Court of Justice (‘ECJ’) ruled in an appeal, lodged against a General Court judgment of 13 September 1995 (T-244/93). The action was brought by Textilwerke Deggendorf GMBH (‘TWD’), beneficiary of two separate State aid measures, granted by the German Authorities. The action concerned a decision by the European Commission (‘EC’), suspending the payments of a second aid measure. According to the EC, the second aid measure (the ‘TWD II aid’) should be suspended until the first aid was effectively recovered (the ‘TWD I aid’). The General Court (‘GC’) had upheld the suspension decision. The claims made in the