Case T-228/01: Action brought on 25 September 2001 by Territorio Histórico de Vizcaya — Excma. Diputación de Vizcaya, and the Comunidad autónoma del País Vasco — Gobierno Vasco against Commission of the European Communities
Date: 2001-11-24
Institutions: Court of First Instance
Subjects: Basque Country, European Commission, State aid, action for annulment (EU), corporation tax, tax relief

C 331/30

EN

Official Journal of the European Communities

24.11.2001

The applicants claim that the Court should:

— annul

in its entirety the decision of the Commission
which is contested in this action, in the alternative, annul
Article 3 of that decision,

— order the Commission to pay the costs.

Pleas in law and main arguments

The applicants contest Commission Decision C(2001) 1759
final of 11 July 2001 declaring incompatible with the common
market the tax reductions arising from a number of regional
Laws (1) which provide for a tax credit of 45 % of the
investment in new fixed material assets in excess of ESP
2 500 million (EUR 15 025 303 ) made by undertakings in
the Territorio Histo´ rico de Alava.

In support of their claims, the applicants put forward the
following three arguments:

(a)

there is no ‘aid’ within the meaning of Article 87 of the
EC Treaty. The applicants maintain that, contrary to what
is stated in the contested decision:

— the existence of a minimum quantitative threshold

does not imply that there is any selectivity,

— the Commission has not given any substantiate its
charge that the fiscal measure threatens to distort
competition,

— moreover, the decision is disproportionate, since it
does not even exclude those sectors which are not
open to competition nor that portion of alleged aid
which could be regared as compatible;

— recovery of

the aid cannot be imposed as an
obligation when there are other options for restoring
the status quo.

(1) That tax credit, in the form now challenged by the contested
decision, was provided for in respect of 1995,
in the sixth
(Regional Law No 22/1994 of
addendum to Norma Foral
20 December 1994, and was extended until 1996 (Norma Foral
No 33/1995) and 1997 (Norma Foral No 31/1996);
it was
amended by Norma Foral No 24/1996 relativa al Impuesto sobre
Sociedades (Regional Law on Corporation Tax). Normas Forales
33/1997 and 36/1998 made similar provision in respect of
1998 and 1999.

Action brought on 25 September 2001 by Territorio
Histo´ rico de Vizcaya — Excma. Diputacio´ n de Vizcaya,
and the Comunidad auto´ noma del Paı´s Vasco — Gobierno
Vasco against Commission of the European Communities

(Case T-228/01)

(2001/C 331/49)

(Language of the case: Spanish)

An action against the Commission of the European Communi-
ties was brought before the Court of First Instance of the
European Communities on 25 September 2001 by the Territo-
rio Histo´ rico de Vizcaya — Excma. Diputacio´ n de Vizcaya, and
the Comunidad auto´ noma del Paı´s Vasco — Gobierno Vasco,
Vizcaya (Spain), represented by Ramo´ n Falco´ n, lawyer.

The applicants claim that the Court should:

(b) misuse of powers: the Commission is using its powers in
the field of State aid in order to pursue an objective more
appropriate to tax harmonisation.

— annul

in its entirety the decision of the Commission
which is contested in this action, in the alternative, annul
Article 3 of that decision,

(c)

recovery of the aid, at least in the way required by the
contested decision, is excluded:

— order the Commission to pay the costs.

— the requirement to recover the aid is in breach of

legitimate expectations,

Pleas in law and main arguments

— recovery should have been excluded in respect of
those undertakings whos production is intended for
the local market or for sectors in which there is no
competition, as well as in respect of that portion of
the tax credit that does not exceed 25 % net grant
equivalent (NGE),

applicants

The
contest Commission Decision C(2001)
1765 final of 11 July 2001 declaring incompatible with the
common market the tax reductions arising from the fourth
addendum to Norma Foral (Regional Law) No 7/1996 of
26 December 1996, and the 10th addendum to Norma Foral

24.11.2001

EN

Official Journal of the European Communities

C 331/31

4/1998 of 2 December 1998, which provide for a tax credit
of 45 % of the investment in new fixed material assets in
excess of ESP 2 500 million (EUR 15 025 303 ) made by
undertakings in the Territorio Histo´ rico de Vizcaya.

Action brought on 25 September 2001 by Territorio
Histo´ rico de Vizcaya — Excma. Diputacio´ n de Vizcaya,
and the Comunidad auto´ noma del Paı´s Vasco — Gobierno
Vasco against Commission of the European Communities

The pleas in law and main arguments put forward by the
forward in Case
applicants are identical with those put
T-227/01.

(Case T-231/01)

(2001/C 331/51)

(Language of the case: Spanish)

Action brought on 25 September 2001 by Territorio
Histo´ rico de Guipu´ zcoa — Excma. Diputacio´ n de Guipu´ z-
coa, and the Comunidad auto´ noma del Paı´s Vasco —
Gobierno Vasco against Commission of the European
Communities

(Case T-229/01)

(2001/C 331/50)

An action against the Commission of the European Communi-
ties was brought before the Court of First Instance of the
European Communities on 25 September 2001 by the Territo-
rio Histo´ rico de Vizcaya — Excma. Diputacio´ n de Vizcaya, and
the Comunidad auto´ noma del Paı´s Vasco — Gobierno Vasco,
Vizcaya (Spain), represented by Ramo´ n Falco´ n, lawyer.

(Language of the case: Spanish)

The applicants claim that the Court should:

An action against the Commission of the European Communi-
ties was brought before the Court of First Instance of the
European Communities on 25 September 2001 by the Territo-
rio Histo´ rico de Guipu´ zcoa — Excma. Diputacio´ n de Guipu´ z-
coa, and the Comunidad auto´ noma del Paı´s Vasco — Gobierno
Vasco, Guipu´ zcoa (Spain), represented by Ramo´ n Falco´ n,
lawyer.

The applicants claim that the Court should:

— annul

in its entirety the decision of the Commission
which is contested in this action, in the alternative, annul
Article 3 of that decision,

— order the Commission to pay the costs.

Pleas in law and main arguments

applicants

The
contest Commission Decision C(2001)
1764 final of 11 July 2001 declaring incompatible with the
common market the tax reductions arising from the 10th
(Regional Law) No 7/1997 of
addendum to Norma Foral
22 December 1997, which provides for a tax credit of 45 % of
the investment in new fixed material assets in excess of
ESP 2 500 million (EUR 15025303) made by undertakings in
the Territorio Histo´ rico de Guipu´ zcoa.

The pleas in law and main arguments put forward by the
applicants are identical with those put
forward in Case
T-227/01.

— annul

in its entirety the decision of the Commission
which is contested in this action, in the alternative, annul
Article 3 of that decision,

— order the Commission to pay the costs.

Pleas in law and main arguments

applicants

The
contest Commission Decision C(2001)
1763 final of 11 July 2001 declaring incompatible with the
common market the tax reductions arising from Article 26 of
Norma Foral (Regional Law) No 3/1996 of 26 June 1996, on
corporation tax, which provides for a reduction of 99 %,
75 %, 50 % and 25 % of the basis for assessment of the
aforementioned tax applicable during the four first tax years
for undertakings which set up business in the Territorio
Histo´ rico de Vizcaya with effect from the entry into force of
the Law, provided that they have disbursed capital amounting
to more than ESP 20 million (EUR 120 202 ), invest more
than ESP 80 million (EUR 430 810 ) and create more than
10 new jobs.

The pleas in law and main arguments put forward by the
applicants are identical with those put
forward in Case
T-227/01.