Judgment of the General Court (Seventh Chamber) of 16 December 2011 – France v Commission

(Case T-488/10)

ERDF – Reduction of financial contribution – Community structural assistance in Martinique – Action for annulment – Public contracts – Directive 93/37/EEC – Concept of ‘direct subsidy’ – Concept of sports, recreation and leisure facilities – Duty to state reasons – Principle of proportionality

1.                     State aid – Concept – Intervention having effect of relieving burdens on an undertaking – Relevance to the interpretation of ‘subsidy’ within the meaning of Article 2(1) of Directive 93/37 (Art. 107(1) TFEU; Council Directive 93/37, Art. 2(1)) (see paras 25-33)

2.                     Approximation of laws – Procedures for the award of public works contracts – Directive 93/37 – Purpose – Effectiveness (Council Directive 93/37) (see paras 59-65)

3.                     Acts of the institutions – Statement of reasons – Obligation – Scope – Commission decision reducing the amount of Community financial assistance (Art. 296 TFEU; Council Directive 93/37, Art. 2(2)) (see paras 68-71)

Re:

ACTION for annulment of European Commission Decision No C(2010) 5229 of 28 July 2010 concerning the cancellation of part of the contribution of the European Regional Development Fund (ERDF) under the single programming document for objective 1 for Community structural assistance in Martinique, France.

Operative part

The Court:

1. Dismisses the action;

2. Orders the French Republic to pay the costs.