CELEX: C1996/388/07
Language: en
Date: 1996-12-21 00:00:00
Title: Action brought on 16 October 1996 by the Kingdom of Spain against the Commission of the European Communities (Case C-342/96)

No C 388/4         \_ EN                Official Journal of the European Communities                                  21 . 12 . 96
Action brought on 16 October 1996 by the Kingdom of                        undertakings, and the competent bodies — Fogasa
Spain against the Commission of the European                               and the General Social Security Fund — have no
                         Communities                                       discretion whatsoever to apply, in such a way as to
                       Case C-342/96 )                                     favour specific undertakings, any other higher or
                                                                           lower rate of interest than that laid down by law
                        ( 96/C 388/07 )                                    for all statutory obligations .
An action against the Commission of the European                       — Since it is nowhere provided in the legislation that
Communities was brought before the Court of Justice of                     amounts over and above the statutory rate must be
the European Communities on 16 October 1996 by the                         paid into public funds in respect of deferred
Kingdom of Spain, represented by Paloma Plaza Garcia,                      payment of social security debts or repayment of
Abogado del Estado, of the Legal Service for Community                     wages paid out by Fogasa, Tubacex and Acerias de
Affairs, acting as Agent, with an address for service in                   Alava have not received any aid from any funds,
Luxembourg at the Spanish Embassy, 4-6 Boulevard                           whether of State or any other origin ( not even
Emmanuel Servais .                                                         employers' contributions which Fogasa receives
                                                                           under Article 3 of Royal Decree 505/85 and
                                                                           Article 33 of the Employees' Statute ), nor have any
The applicant claims that the Court should:                                sums which might lawfully belong to those public
                                                                           funds been prevented from being paid in, since the
—- annul Commission Decision C(96 ) 2384 final of                          statutory rules have been applied quite simply
    30 July 1996 concerning State aid granted to                           without any interference or exception, and no
    Compañía Española de Tubos por Extrusión SA at                         sums which by law should have been paid into
    Llodio (Álava ), and                                                   those funds have been taken away from them or
                                                                           prevented from being paid in.
— order the defendant to pay the costs.
                                                                       — There has been no distortion of competition .
Pleas in law and main arguments adduced in support:
                                                                       — Both the social security authorities and Fogasa
The contested decision finds that State aid has been
                                                                           have acted in the same way as a private creditor
                                                                           would have done in order to recover the debts
granted as a result of interest being applied at the                        owed to them .
statutory rate on the repayment agreements for sums paid
out by the Fondo de Garantfa Salarial (Wages Guarantee
Fund — Fogasa ) to the employees of Tubacex and its
subsidiary Acerias de Alava, and of those undertakings
being allowed to pay their social security debts by
deferred instalments, on the ground that the rate applied is
lower than the average rate on the private banking                 Action brought on 17 October 1996 by the Commission
market.                                                            of the European Communities against the Federal
                                                                                        Republic of Germany
— Infringement of Article 118 of the EC Treaty: in                                         ( Case C-344/96 )
    accordance with Article 118 of the EC Treaty, only the                                   ( 96/C 388/08 )
    Spanish legislature has the power to lay down Spanish
    social security legislation; Article 20 of Royal
    Legislative Decree 1/1994 of 20 June 1994, which
    forms part of that legislation, regulates deferment of         An action against the Federal Republic of Germany was
    payment and payment by instalments of debts in                 brought before the Court of Justice of the European
    respect of social security contributions and surcharges        Communities on 17 October 1996 by the Commission of
    thereon, providing that they are to bear interest at a         the European Communities, represented by Klaus-Dieter
    certain rate .                                                 Borchardt, a member of its Legal Service, with an address
                                                                   for service in Luxembourg at the office of Carlos Gomez
                                                                   de la Cruz, a member of the Commission's Legal Service,
    Also in accordance with Article 118 of the EC Treaty,          Wagner Centre, Kirchberg.
    only the Spanish legislature has the power to lay down
    Spanish employment law. The payment of employees'
    salaries by the Fogasa, the very existence of that body        The applicant claims that the Court should:
    and the manner in which it operates serve to provide
    wage guarantees and are statutory and mandatory
    conditions in employment contracts, and the governing          1 . declare that, by failing to take within the prescribed
    legislation forms an integral part of employment law.              period the measures necessary to comply with
                                                                       Directives 93/62/EEC f 1 ), 93/63/EEC ( 2), 93/64/
— Incorrect application of Article 92 of the EC Treaty:                EEC ( 3 ), 93/78/EEC (4 ), 93/79/EEC (5 ) and 94/3/
                                                                       EC ( 6 ), the Federal Republic of Germany has failed to
    — The application of the statutory interest rate                   fulfil its obligations under those Directives and under
        is a general measure which applies for all                     the EC Treaty;