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HomeLatest NewsEuropean justice suspends aid to Italian airlines due to the pandemic

European justice suspends aid to Italian airlines due to the pandemic

Date: March 2, 2024 Time: 07:11:07

The General Court of the European Union (TGUE) has announced this Wednesday the suppression of the aid of 130 million euros granted by Italy to several airlines in the country to compensate for the consequences that the pandemic brought with it and that had been appealed before the Just European start by the Irish airline Ryanair. The Luxembourg-based court has issued a ruling two weeks after annulling the recapitalization plan for the airline Lufthansa, to which the German government granted 6,000 million euros to avoid its bankruptcy.

The sentence, which is appealable by the Italian authorities, justifies its decision in that the European Commission “did not justify its conclusion according to which the contested measure was not contrary” to other community regulations other than those relating to State aid.

In order to receive the aid, the airlines must have assigned to all their employees based in Italy or in third-party companies that participate in their activities a salary that is at least equal to the minimum remuneration agreed in the national collective agreement for the air transport sector. .

Brussels did not assess compatibility with the market

In its analysis of the measure, the Community Executive did not initiate a formal investigation procedure on the understanding that the aid was compatible with the internal market, a possibility that it has as long as it demonstrates “clearly and unequivocally” the reasons for that decision. conclusion. However, the ruling issued today by the Court based in Luxembourg understands that the evaluation of Brussels does not duly justify this decision.

In the first place, the ruling indicates that the European Commission ruled at the same time that the minimum wage requirement was “inseparably” linked to the aid and that “it was not inherent to the objective of the measure, but it did” without clearly showing and unequivocalizes the reasoning that led her to that double sustained”.

On the other hand, the General Court also finds that the Brussels finding that the minimum wage requirement was not contrary to “other provisions” of EU law “also suffered from a lack of reasoning”.

This lack of reasoning, the ruling explains, “is revealed by the fact that, when examining the minimum remuneration requirement, the Commission took into account a complaint from the Italian Association of Low Cost Companies questioning the compatibility with the freedom to provide services (…) of an Italian regulation that imposed a minimum remuneration requirement like the one contained in the contested measure.

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Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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