Judgment — ECLI:EU:C:2008:349
Date: 2008-06-19
Language of the case: German
Court formation: First Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: State aids;Competition
Concepts: Defences;General
Procedure: Action for failure to fulfil obligations - successful
Origin: Germany

Action brought on 24 January 2006 by Commission of the European Communities against the Federal Republic of Germany (Case C-39/06) (Language of the case: German) An action against the Federal Republic of Germany was brought before the Court of Justice of the European Communities on 24 January 2006 by the Commission of the European Communities, represented by K. Gross and T. Scharf, acting as Agents, with an address for service in Luxembourg. The applicant claims that the Court should: declare that by not taking all the measures necessary to recover the aid granted, the Federal Republic of Germany has failed to fulfil its obligations under Article 249 EC and Articles 1, 2 and 3 of the Commission Decision in the State aid procedure C-62/00 (ex NN 142/99) of 30 October 2002, in the form of the corrected decision of 13 May 2003 (2003/643/EC)1 on the State aid implemented by Germany for Kahla Porzellan GmbH and Kahla/Thüringen Porzellan GmbH; order the Federal Republic of Germany to pay the costs. Pleas in law and main arguments According to the European Commission, the Federal Government failed to sufficiently implement the Commission's decision in the State aid procedure C-62/00 (ex NN 142/99) of 30 October 2002 in the form of the corrected decision of 13 May 2003 (2003/643/EC). By means of the decision, a number of items of State aid granted by Germany to Kahla Porzellan GmbH in the years from 1991 to 1993 and to Kahla/Thüringen Porzellan GmbH in the years from 1993 to 1999 were declared to be incompatible with the common market. At the same time the decision ordered that they be recovered, including interest. The fact that Decision 2003/643/EC is being contested in Case T-20/03 is irrelevant as regards the obligation to execute the decision, as the bringing of the action has no suspensory effect. As the Federal Republic has not yet fully implemented Decision 2003/643/EC, despite repeated written demands on the part of the Commission, the Commission has brought an action under the second paragraph of Article 88(2) of the EC Treaty. ____________ 1 - OJ 2003 L 227, p. 12.