CELEX: 62008TJ0579
Language: en
Date: 2011-10-20
Title: Judgment of the General Court (Second Chamber) of 20 October 2011. # Eridania Sadam SpA v European Commission. # State aid - Measures by the Italian authorities aimed at compensating for the losses suffered by the sugar refinery Villasor (Italy) following a drought - Decision declaring the aid incompatible with the common market - Obligation to state reasons - Guidelines for State aid in the agricultural sector. # Case T-579/08.

Judgment of the General Court (Second Chamber) of 20 October 2011 – Eridania Sadam v Commission
      (Case T-579/08)
      State aid – Measures by the Italian authorities aimed at compensating for the losses suffered by the sugar refinery Villasor (Italy)
         following a drought – Decision declaring the aid incompatible with the common market – Duty to state reasons – Guidelines for State aid in the agricultural sector
      
      1.                     State aid – Commission decision finding aid to be incompatible with the common market – Decision concerning aid aimed at compensating
            for losses suffered by a sugar refinery following a fall in production of beet sugar due to a drought – Effect on trade between
            Member States – Adverse effect on competition – Duty to state reasons – Scope (Arts 87(1) EC and 253 EC) (see paras 29-32)
      2.                     State aid – Effect on trade between Member States – Adverse effect on competition – Aid of little importance in a sector with
            lively competition – Sugar producing market (Art. 87(1) EC) (see paras 37-39)
      3.                     Actions for annulment – Action brought against a Commission decision declaring State aid incompatible with the common market
            – Plea claiming error of legal basis having no effect on the legality of the contested decision – Invalid plea in law (see
            paras 49-53)
      4.                     State aid – Prohibition – Exceptions – Economic disadvantages caused directly by natural disasters or exceptional occurrences
            – Guidelines for State aid in the agricultural sector – Aid aimed at compensating for losses in agricultural production or
            means of agricultural production – Scope (Art. 87(2)(b) EC; Commission Notice 2000/C 28/02) (see paras 58, 61-71)
      5.                     State aid – Administrative procedure – Obligation on the Commission to put the parties concerned on notice to submit their
            observations – Exlusion of the interested parties from the benefit of defence rights (Art. 88(2) EC) (see paras 79-81)
      Re: 
      
         
               APPLICATION for annulment of Commission Decision 2009/704/EC of 16 July 2008 relating to State aid C 29/2004 (ex N 328/2003)
                  that Italy is considering granting to the Villasor sugar refinery owned by Sadam ISZ (OJ 2009 L 244, p. 10).
               
            Operative part 
      The Court:
      
         
                  1.
               
               
                  
               
               
                  	Dismisses the action;
               
            
         
                  2.
               
               
                  
               
               
                  	Orders Eridania SpA to bear its own costs and to pay those incurred by the European Commission.