Jurisdiction(s):
United Kingdom

Key definition

State aid definition

What does State aid mean? In practice, state aid refers to public financial support that selectively benefits businesses and risks distorting competition or trade. Under EU law (Articles 107-109 TFEU and case law), it covers advantages granted through state resources that favour certain undertakings or goods and affect trade between Member States. Typical measures include grants, loans, guarantees, tax reliefs, equity injections and land or services below market value. Unless covered by the General Block Exemption Regulation or de minimis rules, aid must be notified to and approved by the European Commission; unlawful aid can be recovered with interest. In Great Britain, the EU state aid...

CJEU: Greece breached Article 288 TFEU by failing to recover €425m unlawful State aid to farmers and to inform the Commission (Case C-11/20, 12 May 2021)

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Practice notes

CASE HUB ARCHIVED

This archived case hub reflects the position as at the judgment date of 12 May 2021; it is no longer maintained. See further: timeline and relevant/related cases.

Case facts

Outline Proceedings were brought by the Commission against Greece for non-compliance with the Commission decision of 7 December 2011, which concluded that compensation amounting to €425m, paid by the Greek Agricultural Insurance Organisation (ELGA) to farmers for losses sustained in 2008 due to adverse weather, constituted unlawful State aid (SA.28864).

Latest developments

On 12 May 2021, the Court of Justice delivered its judgment, holding that Greece, by failing to adopt within the prescribed period all measures necessary to recover the unlawful aid, and by failing to notify the Commission within that period of the steps taken to comply with the decision, breached its obligations under Article 288 TFEU and the relevant provisions of the Commission’s decision.

Parties

Appellant: European Commission (the Commission)
Respondent: Greece

Background

In 2009, the Greek Agricultural Insurance Organisation (ELGA)-a public body whose role is to insure agricultural holdings against damage caused by natural risks-made compensation payments to Greek farmers totalling €425m for damage...

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Web page updated on 27/05/2026

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