Court annuls EU approval of $140 million of COVID-19 aid for Italian airlines
A top European Union court has ruled that the European Commission was wrong to approve millions of euros (dollars) in aid to help Italian airlines cope with the impact of COVID-19 restrictions
BRUSSELS (AP) — A top European Union court ruled Wednesday that the European Commission was wrong to approve millions of euros (dollars) in aid to help Italian airlines cope with the impact of COVID-19 restrictions.
The EU general court said the European Commission — the bloc's executive arm — failed to provide “a statement of reasons for its finding that the measure at issue was not contrary to EU law provisions other than those governing state aid.”
The 27 EU member countries must seek approval from the bloc’s executive branch when granting financial support to companies. Many countries across Europe did so in 2020 to help keep their airlines afloat during the pandemic.
In October 2020, Italian authorities informed the European Commission of their plans to provide 130 million euros ($140 million) to airlines holding an Italian license under certain conditions, and the commission did not raise objections.
