Case T-162/06

Kronoply GmbH & Co. KG

v

Commission of the European Communities

(State aid – Regional aid for large investment projects – Decision declaring the aid incompatible with the common market – Statement of reasons – Incentive effect of the aid − Necessity of the aid)

Summary of the Judgment

1.      Acts of the institutions – Statement of reasons – Obligation – Scope – Commission decision finding aid to be incompatible with the common market

(Art. 253 EC)

2.      State aid – Prohibition – Exceptions – Aid capable of benefitting from the derogation under Article 87(3)(c) EC – Operating aid – Not included

(Art. 87(3)(c) EC)

3.      State aid – Planned aid – Notification to the Commission

(Art. 88 EC)

1.      The statement of reasons required under Article 253 EC must be appropriate to the measure in question and must disclose in a clear and unequivocal fashion the reasoning followed by the institution which adopted that measure, in such a way as to enable the persons concerned to ascertain the reasons for the measure and to enable the competent court to carry out its review.

The Commission, in a decision finding a State measure to be incompatible operating aid which cannot be authorised due to the lack of incentive effect and necessity, must explicitly state the reasons for that finding.

(see paras 26-28)

2.      The Commission can declare aid compatible with Article 87(3) EC only if it can establish that the aid contributes to the attainment of one of the objectives specified in that provision, something which, under normal market conditions, the recipient firms would not achieve by their own actions. In other words, the Member States must not be permitted to make payments which, although they would improve the financial situation of the recipient undertaking, are not necessary for the attainment of the objectives specified in Article 87(3) EC.

It is not acceptable for aid to include arrangements, in particular as regards its amount, whose restrictive effects exceed what is necessary to enable the aid to attain the objectives permitted by the Treaty.

Aid which does not require the beneficiary either to pay consideration or to contribute to an objective in the common interest is operating aid intended to cover the normal running costs that the beneficiary has to bear and, as such, cannot be authorised. Such aid distorts the conditions of competition.

(see paras 65-66, 74-75)

3.      After a notification by a Member State of an aid project and its authorisation by the Commission, that State may notify a plan to introduce new aid in favour of an undertaking or to alter aid already granted to it. The new notification is subject to review by the Commission, which, after checking that the conditions laid down in Article 87(2) and (3) EC are satisfied, may declare the aid compatible with the common market.

The fact that national legislation provides that a project must be completed within a certain period does not automatically lead to the loss of the possibility of applying for and obtaining authorisation, after the expiry of that period, for an increase in the aid already granted for that project.

(see paras 85-87)