Judgment — ECLI:EU:C:2003:387
Date: 2003-07-03
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: State aids;Competition
Concepts: Statement of reasons;Formal investigation procedure;Commission decision following the formal investigation procedure;Damage to competition and effect on trade;Obligations of the Member States
Procedure: Action for annulment - unfounded
Origin: Belgium

Summary of the Judgment 
1. State aid — Examination by the Commission — Determination of the recipient of 
aid — Actual benefit — Whether possible to take account of the wording of 
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SUMMARY — CASE C-457/00 
allocation clauses in the case of a loan and thus to classify as the beneficiary an entity 
other than the borrower — Whether necessary to classify in advance the State aid 
measure in respect of the borrower — Not necessary 
(Art. 87(1) EC) 
2. State aid — Commission decision declaring aid to be incompatible with the common 
market — Difficulties in implementation — Obligation on the Commission and the 
Member State to cooperate in seeking a solution consistent with the Treaty 
(Arts 10 EC and 88(2), first subpara., EC) 
3. Acts of the institutions — Statement of reasons — Obligation — Scope — Com­
mission decision finding aid incompatible with the common market 
(Arts 87 EC and 253 EC) 
1. In order to determine the recipient of 
State aid, it is necessary to identify the 
undertakings which have actually bene­
fited from it. In the case of a loan, the 
Commission is not precluded from 
taking the wording of the allocation 
clauses into account in order to deter­
mine that recipient and such an analy­
sis could lead to the conclusion that 
that recipient is a different entity from 
the borrower. Given that Article 87(1) 
EC prohibits aid granted by a Member 
State or through State resources in any 
form whatsoever, it is not necessary 
when reaching such a conclusion to 
first make a finding that the inter­
vention constitutes State aid to the 
borrower. 
(see paras 55-57) 
2. A Member State which encounters 
unforeseen difficulties in implementing 
a decision finding that aid is incom­
patible with the common market and 
ordering its recovery may submit those 
problems for consideration by the 
Commission. In such a case the Com­
mission and the Member State con­
cerned must, in accordance with the 
duty of genuine cooperation between 
Member States and Community insti­
tutions stated in particular in Article 10 
EC, work together in good faith with a 
view to overcoming the difficulties 
whilst fully observing the Treaty provi­
sions, in particular the provisions on 
aid. 
(see para. 99) 
3. Whilst in certain cases the very circum­
stances in which State aid has been 
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BELGIUM v COMMISSION 
granted may show that it is liable to 
affect trade between Member States 
and to distort or threaten to distort 
competition, the Commission must at 
least set out those circumstances in the 
statement of the reasons for its decision 
finding that that aid is incompatible 
with the common market. 
(see para. 103) 
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