On 8 July 2010, the General Court dismissed an appeal by the German Government against the Commission’s finding that the grant of €7.7m of aid to parcel delivery company, DHL, in order to cover the costs of training 485 employees at a new logistics hub was incompatible with the state aid rules. The applicants challenged the Commission’s introduction of a general “necessity test” as a condition for approving aid. The General Court, however, confirmed that the Commission was entitled to consider whether the aid was necessary in order to carry out the proposed training programme. It concurred with the Commission’s assessment that €6.176m of the aid failed the test because it would not lead to DHL carrying out training that it would not have undertaken anyway (e.g. occupational health training) or was part its general commercial strategy.
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Appeal against Commission’s DHL training aid decision dismissed
- Nabarro LLP
- Cyrus Mehta, Brian Sher and Rachel Bickler
- European Union, Germany
- July 16 2010
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John Corcoran
Director, Legal Services
Cisco Systems, Inc