Spain has been ordered by the European Court of Justice to pay a penalty amounting to EUR 30 million for failing to recover state aid granted by three Basque Provinces and ruled to be contrary to EU law.
The state aid provisions of EU law are designed to ensure that interventions by governments do not distort competition or adversely affect intra-Community trade. The member states may not make selective concessions to some enterprises that may put other enterprises at a disadvantage and harm the functioning of the internal market. The state aid provisions therefore aim to ensure a level playing field for all enterprises operating in the EU.
The Court considered that the state aid was harmful to competition as a sizeable amount was involved and a large number of taxpayers received the aid. The Court has therefore requested Spain to pay the lump sum fine.
