By Chris Jones - 18th October 2006
Greece is under increasing pressure to comply with EU rulings on illegal state aid payments to ailing air carrier Olympic.
The Brussels competition authorities on Wednesday called on the EU’s highest court to impose a massive fine on Athens for failing to claim back money paid to Olympic between 1998 and 2002.
The case, one of the longest running ‘infringements’ of EU law by a national government, has already seen Greece censured several times for propping up its national carrier.
A commission decision in 2002 ruled that Athens had paid at least €160m in illegal aid – direct cash payments and tax breaks – to Olympic since 1998, and ruled that it must recover the money.
But Greece ignored the commission’s ruling, prompting a court case last year which confirmed the illegal payments and called once again for them to be recovered.
Over a year later, Athens has still failed to comply with either the commission or the court, leading to Wednesday’s recourse to fines.
The Brussels competition authorities are asking the court of justice to impose a lump-sum payment of €10,512 for each day that has passed since the 2005 court ruling until Greece complies with the 2002 decision.
And if Athens has failed to recover the money before the court takes this decision, the Greek authorities could also face possible penalties of €53,611 per day until they comply.
Brussels agreed that Athens could use public money to support Olympic in 1994, 1998 and 2000, but the commission claims that Greece did not meet the commitments it made to ensure that the aid did not distort competition.
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