EC pressuring Olympic and Greek Government!

EU says Greece must apply court decision on Olympic Airlines aid ‘quickly’
4/10/2006 12:47 London Time | story 0830
BRUSSELS (AFX) – The European Commission said Greece must apply “quickly” a ruling made by the EU”s highest court that the government recover aid illegally paid out to flag carrier Olympic Airlines “quickly” or face further court action.
A spokesman said: “The Commission is still awaiting from the Greek authorities proof that they have applied this decision and recovered the illegal aid paid to Olympic.”
“The Court of Justice sentenced Greece for not having applied the decision in 2002. Similar proceedings are now underway and may go the Court if Greece does not apply the decision quickly.”
The European Court of Justice ruled in May last year that the Greek government broke EU rules by failing to comply with the commission request.
The 161 mln eur of illegal aid given to Olympic since December 2002 comprised 41 mln eur of restructuring aid and another 120 mln of operational aid, including granting the company exemption from payment of various sums the company owed to the Greek state such as VAT on fuel and airport charges.
On Sept 14 last year, the commission added that Greece must recover at least a further 150 mln eur of the 540 mln illegal aid paid to the carrier — formerly known as Olympic Airways.
The case dates back to 1998 when the commission authorised the payment of aid to restructure the airline, on condition that a strict plan was implemented, which foresaw a combination of cost control and increased productivity.
When the Greek government failed to honour these obligations, the commission declared the aid to be illegal as the behaviour was deemed to distort competition.

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