Greece Faces Penalty Over Shipyard Aid

business

By MarEx 2016-07-22 19:45:15

The European Commission said on Friday it had referred Greece to Europe's top court for not recovering state aid granted to Hellenic Shipyards, asking for a fine of around six million euros ($6.6 million) over what the E.U. executive deemed unlawful subsidies in 2008.

"More than seven years after its adoption, Greece still has not implemented the Commission decision of June 2008, ordering the recovery of over 250 million euros of unlawful state aid to Hellenic Shipyards," the E.U. executive said in a statement.

The Commission has also requested that the European Court of Justice impose a daily penalty of around 35,000 euros from the day of its judgment until Greece brings the infringement to an end.

The Court of Justice had dismissed, upon appeal, the actions for annulment brought by Hellenic Shipyards against the Commission's 2008 decision. The E.U.’s Article 107 allows certain categories of aid that further an objective of common interest without unduly distorting competition in the single market. Aid that does not fulfil these conditions is incompatible. Where Member States have already granted incompatible aid, they need to recover it swiftly from the beneficiaries.