The European Court of Justice (ECJ) has ruled that Germany has failed to fully recover State aid that it granted to Kahla Porzellan GmbH and Kahla/Thuringen Porzellan GmbH (its successor). Kahla Porzellan is a producer of porcelain, based in Germany, and was granted aid as the company was in financial difficulties. Following an in-depth investigation by the European Commission (Commission), the Commission decided that €15.7m of aid granted to the Kahla Porzellan was incompatible with EC rules on State aid and therefore must be recovered. One key element of the decision was that as there was no restructuring plan, the aid did not comply with guidelines in relation to rescue and restructuring. Kahla Porzellan has appealed the decision of the Commission, and we await the judgment of the Court of First Instance. Whilst the judgment is awaited, the Commission referred Germany to the ECJ. The ECJ ruled that Germany has not complied with aid recovery, as aid granted in relation to employment in connection with environmental investments has not yet been recovered.
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Germany fails to recover State aid granted to Kahla Porzellan
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