# C_2006331EN.01000102.xml

| 30.12.2006 | EN | Official Journal of the European Union | C 331/1 |
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Judgment of the Court (Second Chamber) of 14 December 2006 — Commission of the European Communities v Kingdom of Spain

(Joined Cases C-485/03 to C-490/03)( 1 )

(State aid - Aid schemes - Incompatibility with the common market - Time-limit for execution of the Commission's decisions - Abolition of aid schemes - Cancellation of outstanding aid - Recovery of aid made available - Absolute impossibility of giving effect to a decision)

(2006/C 331/02)

Language of the case: Spanish

Parties

Applicant: Commission of the European Communities (represented by: J.L. Buendía Sierra and F. Castillo de la Torre, Agents)

Defendant: Kingdom of Spain (represented by: N. Díaz Abad, Agent)

Re:

Failure by a Member State to fulfil obligations — Failure to adopt, within the prescribed period, the measures necessary to ensure the application of Articles 2 and 3 of the Commission decision of 11 July 2001 concerning the State aid scheme implemented by Spain in favour of undertakings in the province of Álava in the form of a tax credit of 45 % of the investments made (notified under No C(2001)1759) (OJ 2002 L 296, p. 1) — Tax measures in the historic territory of Álava — Obligation to recover aid already paid and obligation to abolish future payments

Operative part of the judgment

The Court:

| 1. | Declares that by failing to adopt within the prescribed period all of the measures necessary to comply with Articles 2 and 3 of each of the following decisions:
—
Commission Decision 2002/820/EC of 11 July 2001 on the State aid scheme implemented by Spain for firms in Álava in the form of a tax credit amounting to 45 % of investments (Case C-485/03); —
Commission Decision 2002/892/EC of 11 July 2001 on the State aid scheme applied by Spain to certain newly established firms in Álava (Case C-488/03); —
Commission Decision 2003/27/EC of 11 July 2001 on the State aid scheme implemented by Spain for firms in Vizcaya in the form of a tax credit amounting to 45 % of investments (Case C-487/03); —
Commission Decision 2002/806/EC of 11 July 2001 on the State aid scheme applied by Spain to certain newly established firms in Vizcaya (Case C-490/03); —
Commission Decision 2002/894/EC of 11 July 2001 on the State aid scheme implemented by Spain for firms in Guipúzcoa in the form of a tax credit amounting to 45 % of investments (Case C-486/03), and —
Commission Decision 2002/540/EC of 11 July 2001 on the State aid scheme applied by Spain to certain newly established firms in Guipúzcoa (Case C-489/03), the Kingdom of Spain has failed to fulfil its obligations under those decisions; | — | Commission Decision 2002/820/EC of 11 July 2001 on the State aid scheme implemented by Spain for firms in Álava in the form of a tax credit amounting to 45 % of investments (Case C-485/03); | — | Commission Decision 2002/892/EC of 11 July 2001 on the State aid scheme applied by Spain to certain newly established firms in Álava (Case C-488/03); | — | Commission Decision 2003/27/EC of 11 July 2001 on the State aid scheme implemented by Spain for firms in Vizcaya in the form of a tax credit amounting to 45 % of investments (Case C-487/03); | — | Commission Decision 2002/806/EC of 11 July 2001 on the State aid scheme applied by Spain to certain newly established firms in Vizcaya (Case C-490/03); | — | Commission Decision 2002/894/EC of 11 July 2001 on the State aid scheme implemented by Spain for firms in Guipúzcoa in the form of a tax credit amounting to 45 % of investments (Case C-486/03), and | — | Commission Decision 2002/540/EC of 11 July 2001 on the State aid scheme applied by Spain to certain newly established firms in Guipúzcoa (Case C-489/03), |
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| — | Commission Decision 2002/820/EC of 11 July 2001 on the State aid scheme implemented by Spain for firms in Álava in the form of a tax credit amounting to 45 % of investments (Case C-485/03); | | | | | | | | | | | | |
| — | Commission Decision 2002/892/EC of 11 July 2001 on the State aid scheme applied by Spain to certain newly established firms in Álava (Case C-488/03); | | | | | | | | | | | | |
| — | Commission Decision 2003/27/EC of 11 July 2001 on the State aid scheme implemented by Spain for firms in Vizcaya in the form of a tax credit amounting to 45 % of investments (Case C-487/03); | | | | | | | | | | | | |
| — | Commission Decision 2002/806/EC of 11 July 2001 on the State aid scheme applied by Spain to certain newly established firms in Vizcaya (Case C-490/03); | | | | | | | | | | | | |
| — | Commission Decision 2002/894/EC of 11 July 2001 on the State aid scheme implemented by Spain for firms in Guipúzcoa in the form of a tax credit amounting to 45 % of investments (Case C-486/03), and | | | | | | | | | | | | |
| — | Commission Decision 2002/540/EC of 11 July 2001 on the State aid scheme applied by Spain to certain newly established firms in Guipúzcoa (Case C-489/03), | | | | | | | | | | | | |

| 2. | Orders the Kingdom of Spain to pay the costs. |
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( 1 )  OJ C 21, 24.1.2004.

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