Judgment of the Court (First Chamber) of 1 June 2006.#Commission of the European Communities v Italian Republic.#Failure of a Member State to fulfil obligations - State aid - Second subparagraph of Article 88(2) EC - Aid incompatible with the common market - Duty to recover -Non-fulfilment.#Case C-207/05.

Subject of the case

Re:

Failure of a Member State to fulfil obligations – Breach of Articles 3 and 4 of Commission Decision 2003/193/EC of 5 June 2002 on State aid granted by Italy in the form of tax exemptions and subsidised loans to public utilities with a majority public capital holding [C-27/99 (ex NN 69/98)] (OJ 2003 L 77, p. 21) – Failure to adopt, within the prescribed period, the necessary measures to recover aid declared incompatible with the common market.

Operative part

Operative part

The Court:

1. Declares that by failing to adopt, within the prescribed period, the necessary measures to recover from the recipients aid declared unlawful and incompatible with the common market by Commission Decision 2003/193/EC of 5 June 2002 on State aid granted by Italy in the form of tax exemptions and subsidised loans to public utilities with a majority public capital holding, the Italian Republic has failed to fulfil its obligations under Articles 3 and 4 of that decision;

2. Orders the Italian Republic to pay the costs.