In the context of the final settlements for state Corona support programs, the Administrative Court of Hamburg has submitted questions to the Court of Justice of the European Union (CJEU) regarding the EU law assessment of the German bridging aids for a decision. Thus, the EU law viability of central regulatory components of these aid measures is the subject of an ongoing procedure before the CJEU. Of particular importance here are especially the state aid law requirements of EU law and their application to the national design of the funding programs.
Subject of the Procedure and Procedural Starting Point
Final Settlements and Reclaims within the Context of Bridging Aids
The bridging aids were introduced as economic support measures during the pandemic and were regularly applied in practice based on forecast sales drops and eligible fixed costs. In the final settlement, the originally assumed figures are reconciled with the actual numbers. This can result in corrections, particularly in the form of reclaims or additional payments.
Referral Questions to the CJEU as an Interim Step
The referral to the CJEU takes place via a preliminary ruling procedure. In such a procedure, the CJEU does not decide on the specific case but clarifies interpretation questions of EU law that are significant for the national court’s decision. The national proceedings are then continued taking into account the CJEU’s guidelines.
EU Law Framework: State Aid Law as a Benchmark
Relevance of State Aid Law Examination
In the case of state grants to companies, the factual elements of state aid within the meaning of EU law may be involved. Decisive factors include whether state funds are granted selectively, thereby creating an advantage in competition. For permissibility, it fundamentally depends on compatibility with the internal market and compliance with state aid law requirements.
Importance of State Aid Law Approval and Framework Conditions
During the pandemic, state aid law special frameworks were created or applied at the European level to enable quick assistance. The design of national programs operates within certain parameters. Disputes may arise particularly where national administration, funding conditions, or their practical implementation in the final settlement raise EU law questions.
Scope of the CJEU Decision for Administrative Practice and Those Affected
Implications for Ongoing Final Settlements and Notices
Since the CJEU proceedings have not yet concluded, the outcome is not currently established. Nonetheless, the decision of the CJEU may gain significance for the legal classification of certain funding requirements, evaluation criteria, or reclaim mechanisms. Whether and to what extent this results in consequences for specific administrative acts depends on the respective individual case and the subsequent decision of the national court.
No Premature Conclusion – Ongoing Procedure
The process is an ongoing judicial procedure where the final legal evaluation is yet to be made. An anticipation of the decision or an evaluation to the detriment of individual participants is not involved; it is particularly important to consider that the preliminary ruling procedure serves the clarification of abstract EU law questions.
MTR Legal – Classification from a Tax Law Perspective
For companies, investors, and wealthy private individuals, final settlements, reclaim notices, and the underlying state aid law criteria can develop significant financial and planning relevance. Anyone wishing to examine legal issues in the tax law environment in this context will find a contact at MTR Legal for aLegal Advice in Tax Law.
