Judgment of the Court (Fifth Chamber) of 13 October 2011 – Commission v Italy

(Case C-454/09)

Failure of a Member State to fulfil obligations – State aid – Aid for New Interline SpA – Recovery

1. Actions for failure to fulfil obligations – Failure to comply with a Commission decision concerning State aid – Duty to recover the aid granted – Period within which the aid is to be recovered (Arts 88(2) EC, 226 EC and 249 EC) (see paras 34, 37)

2. State aid – Recovery of unlawful aid – Recipient undertakings that become bankrupt – Aid entered in the schedule of liabilities in order to restore the status quo ante (Art. 88(2) EC) (see paras 35-36)

3. Actions for failure to fulfil obligations – Failure to comply with a Commission decision concerning State aid – Defences – Legality of the decision called in question – Inadmissibility – Limits – Non-existent measure (Arts 88(2), second para., EC, 226 EC, 227 EC, 230 EC and 232 EC) (see para. 41)

Re:

Operative part

The Court:

1.Declares that, by failing to adopt, within the prescribed period, all the measures necessary to ensure implementation of Commission Decision 2008/697/EC of 16 April 2008 on State Aid C 13/07 (ex NN 15/06 and N 734/06) implemented by Italy for New Interline, the Italian Republic has failed to fulfil its obligations under the fourth paragraph of Article 249 EC and Articles 2 and 3 of that decision;

2.Orders the Italian Republic to pay the costs.