ECJ (Judgment) 1. Joint financing by a State, through a public fund which enjoys a degree of latitude enabling it to adjust its intervention, of measures accompanying social plans drawn up by undertakings experiencing employment problems constitutes State aid within the meaning of Article 92(1) of the Treaty.
First, the social character of such assistance is not sufficient to exclude it outright from being categorized as aid for the purposes of Article 92(1) of the Treaty, which draws no distinction based on the causes or aims of State intervention but defines it in relation to its effects.
Secondly, since a fund of that kind enjoys a degree of latitude which enables it to adjust its financial assistance, the contribution from that fund, even if not limited sectorially or territorially or by reference to a restricted category of undertakings, is liable to place certain undertakings in a more favourable situation than others by relieving them of certain legal obligations vis-a-vis their employees and thereby mitigating the charges which are normally included in their budgets.
2. The legality of a decision concerning aid is to be assessed in the light of the information available to the Commission when the decision was adopted. In particular, if, despite a specific request addressed to it, a Member State fails to provide the Commission with information enabling it to assess the nature and effects of State intervention in a social plan drawn up by an undertaking experiencing employment problems, the Commission is entitled to conclude that such intervention constitutes State aid within the meaning of Article 92 of the Treaty where it appears that it is liable to mitigate the charges which are normally included in the budget of that undertaking.
Citations:
C-241/94, [1996] EUECJ C-241/94
Links:
European
Updated: 03 June 2022; Ref: scu.161421