The FINANCIAL — The European Ombudsman, P. Nikiforos Diamandouros, has welcomed the European Commission's adoption of a decision in an Italian state aid case, following a complaint from an Italian firm.
The company complained about a more than three year delay in adopting this decision. After the Ombudsman's intervention, the Commission apologized for the delay and adopted the decision rapidly, finding the Sardinian aid scheme for shipping companies to be incompatible with the common market.
The case
In 1993, an Italian shipping company lodged a complaint with the Commission concerning a Sardinian aid scheme for shipping companies intending to build, purchase, convert or repair vessels. According to the complainant, the aid scheme discriminated against companies established in Sardinia but having their head offices elsewhere.
In 1997, the Commission concluded that the aid scheme constituted unlawful "state aid" and was therefore incompatible with the common market. According to the Commission, the aid conflicted with the rights to freedom of establishment and non-discrimination.
In 2000, the European Court of Justice annulled the Commission's decision on procedural grounds, namely, because there was an insufficient statement of reasons. Following the judgment, the complainant asked the Commission to adopt a new decision, which would correct the procedural error and again declare the state aid to be unlawful.
In April 2004, the Italian company turned to the Ombudsman, claiming that the Commission had failed to adopt the new decision. The Commission apologized for the delay and stated that it intended to adopt the new decision.
In August 2006, the complainant turned again to the Ombudsman, claiming that the Commission had still not adopted the new decision. The Ombudsman considered the long delay to be maladministration. In a proposal for a friendly solution, he suggested that the Commission should adopt its final decision by no later than 31 January 2008.
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