Spain. State Aid

In general, the Spanish national authorities and courts apply the state aid rules correctly. However, on several occasions the Commission has initiated formal investigation procedures, issued recovery orders and initiated infringement proceedings before the Court of Justice of the European Union (CJEU) for Spain’s failure to comply with recovery orders.

There are several examples of CJEU decisions Knding that the jingdom of Spain has failed to comply with recovery obligations for aid declared unlawful and incompatible, such as the 7udgments in Case C-/04198 and Case C-9F4199. The main problems have arisen due to unlawful regional tax breaks and failings in the procedure to recover them.

For this reason, in 209ó the General Tax Law was amended to establish a speciKc procedure for recovering tax state aid. Apart from the extraordinary aid granted as a result of the covid-98 pandemic, the sector that receives most public aid is air and maritime transport owing to the subsidisation of travel to Spain’s islands. Other economic sectors that receive signiKcant amounts in public aid are tourism and telecommunications.

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