Judgment of the Court (Eighth Chamber) of 17 October 2013 — Commission v Italy

(Case C‑344/12)

‛Failure of a Member State to fulfil obligations — State aid — Aid granted by the Italian Republic for the benefit of Alcoa Trasformazioni — Commission Decision 2010/460/EC declaring that aid to be incompatible and ordering its recovery — Failure to implement within the prescribed period’

1. State aid — Recovery of unlawful aid — Obligation — Duty to comply immediately and effectively with the Commission’s decision (Arts 108(2) TFEU and 288 TFEU; Council Regulation No 659/1999, Art. 14(3)) (see paras 37-40, 47)

2. Actions for failure to fulfil obligations — Non-compliance with a Commission decision concerning State aid — Duty to recover the aid granted — Reference period — Time-limit prescribed either in the unimplemented decision or subsequently by the Commission (Art. 108(2), second para., TFEU and 288 TFEU) (see paras 41, 42)

3. Actions for failure to fulfil obligations — Failure to comply with the obligation to recover aid granted unlawfully — Defences — Absolute impossibility of implementation — Criteria for assessment — Difficulties in implementing — Obligation of the Member State to undertake real steps in relation to the undertakings concerned and to propose to the Commission alternative solutions enabling such difficulties to be overcome — Obligation of the Commission and of the Member State, where there are difficulties of implementation, to cooperate in finding a solution consistent with the Treaty — Failure to adopt with the prescribed period the measures necessary to recover from the beneficiaries any aid granted unlawfully — Failure to fulfil obligations (Art. 4(3), TEU; Art.108(2) TFEU and 288, fourth para., TFEU; Council Regulation No 659/1999, Art. 14(3)) (see paras 48-51, 55, operative part)

Re:

Failure of a Member State to fulfil obligations — Failure to have adopted the necessary measures to comply with Articles 2, 3 and 4 of Commission Decision C(2009) 8112 final of 19 November 2009, concerning State aids C 38/A/2004 (ex NN 58/2004) and C 36/B/2006 (ex NN 38/2006), implemented by the Italian Republic for Alcoa Trasformazioni srl, and infringement of Article 288 TFEU.

Operative part

The Court:

1. Declares that, by not adopting within the prescribed period all the measures necessary to recover from the beneficiary of the State aid declared to be unlawful and incompatible with the common market under Article 1 of Commission Decision 2010/460/EC of 19 November 2009 concerning State aids Nos C 38/A/2004 (ex NN 58/2004) and C 36/B/2006 (ex NN 38/2006) implemented by Italy for Alcoa Trasformazioni, the Italian Republic has failed to fulfil its obligations under Articles 2 and 3 of that decision;

2. Orders the Italian Republic to pay the costs.

Judgment of the Court (Eighth Chamber) of 17 October 2013 — Commission v Italy

(Case C‑344/12)

‛Failure of a Member State to fulfil obligations — State aid — Aid granted by the Italian Republic for the benefit of Alcoa Trasformazioni — Commission Decision 2010/460/EC declaring that aid to be incompatible and ordering its recovery — Failure to implement within the prescribed period’

1. State aid — Recovery of unlawful aid — Obligation — Duty to comply immediately and effectively with the Commission’s decision (Arts 108(2) TFEU and 288 TFEU; Council Regulation No 659/1999, Art. 14(3)) (see paras 37-40, 47)

2. Actions for failure to fulfil obligations — Non-compliance with a Commission decision concerning State aid — Duty to recover the aid granted — Reference period — Time-limit prescribed either in the unimplemented decision or subsequently by the Commission (Art. 108(2), second para., TFEU and 288 TFEU) (see paras 41, 42)

3. Actions for failure to fulfil obligations — Failure to comply with the obligation to recover aid granted unlawfully — Defences — Absolute impossibility of implementation — Criteria for assessment — Difficulties in implementing — Obligation of the Member State to undertake real steps in relation to the undertakings concerned and to propose to the Commission alternative solutions enabling such difficulties to be overcome — Obligation of the Commission and of the Member State, where there are difficulties of implementation, to cooperate in finding a solution consistent with the Treaty — Failure to adopt with the prescribed period the measures necessary to recover from the beneficiaries any aid granted unlawfully — Failure to fulfil obligations (Art. 4(3), TEU; Art.108(2) TFEU and 288, fourth para., TFEU; Council Regulation No 659/1999, Art. 14(3)) (see paras 48-51, 55, operative part)

Re:

Failure of a Member State to fulfil obligations — Failure to have adopted the necessary measures to comply with Articles 2, 3 and 4 of Commission Decision C(2009) 8112 final of 19 November 2009, concerning State aids C 38/A/2004 (ex NN 58/2004) and C 36/B/2006 (ex NN 38/2006), implemented by the Italian Republic for Alcoa Trasformazioni srl, and infringement of Article 288 TFEU.

Operative part

The Court:

1. Declares that, by not adopting within the prescribed period all the measures necessary to recover from the beneficiary of the State aid declared to be unlawful and incompatible with the common market under Article 1 of Commission Decision 2010/460/EC of 19 November 2009 concerning State aids Nos C 38/A/2004 (ex NN 58/2004) and C 36/B/2006 (ex NN 38/2006) implemented by Italy for Alcoa Trasformazioni, the Italian Republic has failed to fulfil its obligations under Articles 2 and 3 of that decision;