Case C-88/03: Judgment of the Court (Grand Chamber) of 6 September 2006 — Portuguese Republic v Commission of the European Communities (Action for annulment — State aid — Decision 2003/442/EC — Tax measures adopted by a regional or local authority — Reductions on the rate of income tax for natural and legal persons having their tax residence in the Azores — Classification as State aid — Selective nature — Justification by the nature and overall structure of the tax system — Obligation to state reasons — Compatibility with the common market)
Date: 2006-10-28
Institutions: Court of Justice
Subjects: Azores, European Commission, Portugal, State aid, action for annulment (EU), financial institution, tax on income, tax system

28.10.2006

EN

Official Journal of the European Union

C 261/1

I

(Information)

COURT OF JUSTICE

COURT OF JUSTICE

Judgment of the Court (Grand Chamber) of 6 September
2006 — Portuguese Republic v Commission of the Euro-
pean Communities

(Case C-88/03) (1)

Operative part of the judgment

The Court:

1. Dismisses the action;

for

annulment — State

(Action
aid — Decision
2003/442/EC — Tax measures adopted by a regional or local
authority — Reductions on the rate of income tax for natural
and legal persons having their tax residence in the Azores —
Classification as State aid — Selective nature — Justification
by the nature and overall structure of the tax system — Obli-
gation to state reasons — Compatibility with the common
market)

2. Orders the Portuguese Republic to pay the costs;

3. Orders

the United Kingdom of Great Britain and Northern

Ireland and the Kingdom of Spain to bear their own costs.

(1) OJ C 112, 10.5.2003.

(2006/C 261/01)

Language of the case: Portuguese

Parties

Applicant: Portuguese Republic (represented by: L. Fernandes,
Agent, and J. da Cruz Vilaça and L. Romão, advogados)

Defendant: Commission of the European Communities (repre-
sented by: V. Di Bucci and F. de Sousa Fialho, Agents)

Interveners in support of the applicant: Kingdom of Spain (Agent:
N. Díaz Abad), United Kingdom of Great Britain and Northern
Ireland (R. Caudwell, Agent, and D. Anderson QC)

Re:

Annulment of Commission Decision C(2002) 4487 final in so
far as it considers State aid incompatible with the common
market the reduction of the rate of income tax for natural and
legal persons having their tax residence on the Azores and
pursuing certain financial activities (Section J, codes 65, 66 and
67 and Section K, code 74, of the Statistical Classification of
Economic Activities in the European Community — NACE
REV1.1)

Judgment of the Court (Second Chamber) of 7 September
2006 (reference for a preliminary ruling from the Tribu-
nale di Genova — Italy) — Andrea Vassallo v Azienda
Ospedaliera Ospedale San Martino di Genova e Cliniche
Universitarie Convenzionate

(Case C-180/04) (1)

(Directive 1999/70/EC — Clauses 1(b) and 5 of the frame-
work agreement on fixed-term work — Establishment of
employment relationships of indefinite duration resulting
from infringement of the rules governing successive fixed-
term contracts — Possible derogation in respect of employ-
ment contracts in the public sector)

(2006/C 261/02)

Language of the case: Italian

Referring court

Tribunale di Genova

Parties to the main proceedings

Applicant: Andrea Vassallo

Defendant: Azienda Ospedaliera Ospedale San Martino di
Genova e Cliniche Universitarie Convenzionate