Language of document :

Judgment of the Court (Grand Chamber) of 4 December 2013 – European Commission v Council of the European Union

(Case C-118/10) 1

(Action for annulment – State aid – Article 108(1) and (2) TFEU – Aid granted by the Republic of Latvia for the purchase of agricultural land – Competence of the Council of the European Union – Existing aid scheme – Accession of the Republic of Latvia to the European Union – Aid granted before accession – Appropriate measures – Two indissolubly connected aid schemes – Change of circumstances – Exceptional circumstances – Economic crisis – Manifest error of assessment – Principle of proportionality)

Language of the case: English

Parties

Applicant: European Commission (represented by: V. Di Bucci, L. Flynn, K. Walkerová and A. Stobiecka-Kuik, acting as Agents)

Defendant: Council of the European Union (represented by: É. Sitbon and F. Florindo Gijón, acting as Agents)

Intervener in support of the defendant: Republic of Lithuania (represented by D. Kriaučiūnas and L. Liubertaitė, acting as Agents)

Re:

Action for annulment – Annulment of Council Decision 2009/991/EC of 16 December 2009 on the granting of State aid by the authorities of the Republic of Latvia for the purchase of agricultural land between 1 January 2010 and 31 December 2013 (OJ 2009 L 339, p. 34) – Lack of competence – Misuse of powers – Infringement of the principle of sincere cooperation between Member States and institutions – Manifest error of assessment.

Operative part of the judgment

The Court:

1.    Dismisses the action;

2.    Orders the European Commission to pay the costs;

3.    Orders the Republic of Lithuania to bear its own costs.

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1 OJ C 113, 1.5.2010.