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Financial Penalties for Failure to Recover State Aid and their Relevance to State Liability for Breach of Union Law

Rose D’Sa, Sara Drake

DOI https://doi.org/10.21552/ESTAL/2010/1/166



I. Introduction Under Article 87(1) EC (Article 107 (1) TFEU1), when State aid is found to be both2 unlawful (i.e. illegal) and “incompatible with the common market” 3 the logical consequence is that the Commission must order recovery of that aid4, unless the latter accepts that it would be absolutely impossible in the circumstances for the aid to be recovered.5 The EC Treaty does not grant the Commission competence to adopt recovery decisions. This p

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