ITALY AND BELGIUM TAKEN TO COURT FOR FAILING TO RECOVER ILLEGAL STATE AID.

The European Commission decided, on January 25, to bring proceedings before the Court of Justice against Italy and Belgium for failing to comply with two Decisions declaring aid incompatible and ordering it to be recovered. In the case of Italy, an October 2004 Decision found that the aid granted to firms carrying out investment in municipalities affected by natural disasters in 2002 was incompatible and had to be recovered from the recipients (see Europe Information 2906). In the case of Belgium, an April 2002...