Case C-276/02

Kingdom of Spain

v

Commission of the European Communities

(State aid – Definition – Non-payment of taxes and social security contributions by an undertaking – Attitude taken by the national authorities following a declaration of suspension of payments)

Summary of the Judgment

1. State aid – Concept – Measure reducing the charges of an undertaking

(Art. 87(1) EC)

2. State aid – Commission decision – Assessment of legality in the light of the information available to the Commission when the decision was adopted

(Art. 87 EC)

1. Article 87(1) EC defines State aid which is governed by the Treaty as aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods, in so far as it affects trade between Member States.

The concept of aid within the meaning of Article 87(1) EC is wider than that of a subsidy because it embraces not only positive benefits, such as the subsidies themselves, but also measures which, in various forms, mitigate the normal burdens on the budget of an undertaking.

(see para. 24)

2. The legality of a decision concerning State aid is to be assessed in the light of the information available to the Commission when the decision was adopted.

(see para. 31)

JUDGMENT OF THE COURT (Second Chamber) 14 September 2004 (1)

(State aid – Definition – Non-payment of taxes and social security contributions by an undertaking – Attitude taken by the national authorities following a declaration of suspension of payments)

In Case C-276/02,ACTION for annulment under Article 230 EC,brought before the Court on 23 July 2002,

applicant,

v

defendant,

THE COURT (Second Chamber),,

composed of: C.W.A. Timmermans, President of the Chamber, C. Gulmann, J.-P. Puissochet (Rapporteur), J.N. Cunha Rodrigues and F. Macken, Judges,

Advocate General: M. Poiares Maduro,

having regard to the written procedure, after hearing the Opinion of the Advocate General at the sitting on 1 April 2004,

gives the following

Arguments of the parties

Findings of the Court

Arguments of the parties

Findings of the Court

On those grounds, the Court (Second Chamber) hereby:

Signatures.