The GC Dismisses Wizz Air’s Action Against COVID-19 Aid granted by Romania to TAROM
Today the General Court (GC) has dismissed Wizz Air’s action against a decision from the Commission approving aid in the form of compensation for the damage suffered due to the COVID-19 pandemic granted by Romania to the airline TAROM.
The aid concerned a capital injection financed from the general budget of Romania, amounting to EUR 2 million, which the Commission found compatible with the internal market under Article 107(2)(b) TFEU.
The GC has recalled that aid is permitted if its objective is to compensate for damage caused by an exceptional circumstance, such as the COVID-19 pandemic. Additionally, the GC has concluded that the measure did not amount to overcompensation and thus, that the Commission had properly analysed the proportionality of the aid.
Finally, the GC has dismissed the claims that the Commission failed to consider prior rescue aid granted to TAROM under Article 107(3)(c) TFEU and underestimated TAROM’s competitive advantage. The GC has clarified that the previous aid and the current measure were separate measures and addressed different costs. It has moreover stated that the Commission was not obliged to consider any indirect benefits TAROM may have received.
For more information, see the Judgment of the General Court.