Case T-225/01: Action brought on 24 September 2001 by Gobierno Foral de Navarra against Commission of the European Communities
Date: 2001-11-24
Institutions: Court of First Instance
Subjects: European Commission, Spain, State aid, action for annulment (EU), business start-up, tax relief

C 331/28

EN

Official Journal of the European Communities

24.11.2001

The applicant claims that the Court should:

The applicant claims that the Court should:

— declare the action to be admissible;

— annul

the annex to Commission Regulation (EC)
No 1281/2001 (1)
in so far as it fixes the quantities
of sugar considered necessary to supply the Azores,
maintaining in force the preceding situation;

— order the Commission of the European Communities to

pay all the costs.

Pleas in law and main arguments

Infringement of Article 190 of the EC Treaty (now Article 253
EC): manifestly inadequate and inconsistent statement of
reasons,

Infringement of Articles 2, 3 and 8 of Council Regulation
(EEC) No 1600/92 of 15 June 1992: the forecast supply
balance, drawn up by the Commission, does not take account
of traditional trade flows,

Infringement of Article 227 of the EC Treaty (now, after
amendment, Article 299 EC): failure to take account of the
said provision when interpreting and applying legislative
provisions applicable to the outermost regions,

Infringement of Article 4(1) of the EC Treaty (now Article 7(1)
EC): the Commission has exercised its executive powers in a
manifestly abusive and unlawful manner,

Breach of the principle of proportionality: the effects of the
forecast made in Commission Regulation (EC) No 1281/2000
are unfair and unreasonable.

(1) OJ L 176, 29.6.2001, p. 12.

Action brought on 24 September 2001 by Gobierno
Foral de Navarra against Commission of the European
Communities

(Case T-225/01)

(2001/C 331/46)

(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 24 September 2001 by Gobierno
Foral de Navarra (Navarra Regional Government), Navarra
(Spain), represented by Marcos Araujo Boyd, lawyer.

— annul the whole of the Commission’s decision of 11 July
2001 relating to the system of State aid applied by Spain
to certain newly-created undertakings in Navarra (Spain),

— in the alternative, annul Article 3 of the decision on the

ground that repayment of the aid is unjustified,

— order the Commission to pay the costs.

Pleas in law and main arguments

is

applicant

The
challenging Commission Decision
C(2001)1762 final of 11 July 2001 in so far as it characterises
as State aid incompatible with the common market the tax
reductions under Articles 52 to 56 of the Ley Foral (Regional
Law) 24/1996 del impuesto sobre sociedades (Regional Law
on corporation tax) of 30 December 1996 (Boletı´n Oficial de
Navarra No 159 of 31 December 1996) which provide for a
reduction of 50 % on the aforementioned tax for undertakings
which take up business in the Autonomous Community of
Navarra after the entry into force of that Law, provided they
invest a minimum of ESP 100 million (EUR 601 012 ) and
create more than 10 new jobs.

According to the applicant, the contested decision wrongly
finds that the fiscal regime in question provides for aid within
the meaning of Community law, given that they do not
comply with the requirements of Article 87 of the EC Treaty:

(a)

(b)

State resources are not involved. A measure granting a
fiscal reduction does not entail a reduction in State
revenue, since that would imply that there is a homo-
geneous tax debt for which all tax payers are liable.

So far as concerns the charge that competition and trade
are affected, there are a number of reasons for the view
that the Commission has not given an adequate reason
for its finding:

— The Commission has not given the reasons on which
its decision is based. Despite having in the file full
details regarding the undertakings concerned, the
decision contains no analysis whatever either of the
competitive situation of the only two undertakings
to which the reduction has been applied and the
extent to which they are involved in intra-Com-
munity trade or even of the economic sectors in
which they operate.

24.11.2001

EN

Official Journal of the European Communities

C 331/29

— If the Commission were to apply such reasoning
generally to all fiscal legislation, it would arrive at
the absurd conclusion that any change in the fiscal
burden constitutes State aid.

— If the Commission carried its reasoning to its final
logical conclusion, the result would be that any
variation within the regulatory framework in which
undertakings operate would constitute State aid.

(c) The applicant refutes the charge that the measures at
issue are selective and specific in nature, since, first, the
legislation is general in nature, not favouring a particular
undertaking or sector over another and, secondly, the
authority competent to apply it does not enjoy any
discretion but can instead merely ascertain on a case-by-
case basis whether the conditions laid down for triggering
the fiscal advantages are met.

Pleas in law and main arguments

The applicant has brought the present action against the
Commission in order to seek compensation for the damage
allegedly suffered as a result of the decisions adopted in the
context of the tender procedure opened in relation to the
supply of fruit juice and fruit jams intended for the people of
Armenia and Azerbaijan under Commission Regulation (EC)
No 228/96 of 7 February 1996 on the supply of fruit juice
jams intended for the people of Armenia and
and fruit
in particular decision
Azerbaijan (OJ 1996 L 30, p. 18),
C(96)1916 of 22 July 1996 and decision C(96)2208 of
6 September 1996.

Those decisions allowed for the substitution of the fruit
provided for in the tender, with no legal basis nor a supraven-
ing request for it.

Both decisions were challenged by the applicant (Joined Cases
T-191/96 and T-106/97) (1) before the Court of First Instance
which, by judgment of 14 October 1999, annulled the decision
of 6 September 1996, declaring the action brought in Case
T-106/97 inadmissible on the ground that it was out of time.

Action brought on 25 September 2001 by CAS Succhi di
Frutta SpA against the Commission of the European
Communities

The pleas in law and main arguments are similar to those put
forward in the abovementioned cases.

(Case T-226/01)

(2001/C 331/47)

(Language of the case: Italian)

(1) [1999] ECR II-3181.

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 CAS Succhi
di Frutta SpA, represented by Gian Michele Roberti and
Francesco Sciaudone, lawyers.

The applicant claims that the Court should:

— find that the Commission has incurred non-contractual
liability by adopting the decisions of 22 July and of
6 September 1996,

— declare that the applicant suffered damage as a result of
those decisions amounting to ITL 2 682 049 410,

— order the Commission to pay the costs.

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

(Case T-227/01)

(2001/C 331/48)

(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 Alava — Excma. Diputacio´ n de Alava, and the
Comunidad auto´ noma del Paı´s Vasco — Gobierno Vasco,
Alava (Spain), represented by Ramo´ n Falco´ n, lawyer.