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Part IV Procedures before the Commission, 3 Recovery of Unlawful Aid and the Role of National Courts

Viktor Kreuschitz, Hanns Peter Nehl

From: State Aid Law of the European Union

Edited By: Herwig C. H. Hofmann, Claire Micheau

From: Oxford Competition Law (http://oxcat.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved.date: 20 September 2020

State aid provisions — European Union — Aids compatible with common market

This chapter examines the recovery of unlawful and incompatible State aids, which is one of the cornerstones of free and undistorted competition in the European Union. The repayment of an aid declared unlawful and incompatible with the common market is of utmost importance, as it eliminates the distortion of competition caused by the competitive advantage afforded by the contested aid. In other words, by repaying an unlawful aid, the recipient forfeits the advantage it had enjoyed over its competitors on the market and therefore the previously existing situation is restored; it is common ground in this respect that this objective is attained once the aid in question—increased, where appropriate, by default interests—has been repaid by the recipient.

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