Federal Republic of Germany v Commission of the European Communities (C-334/99)

Judgment of 28 Jan 2003

law://eu/cjeu/1999/c-334-99/para_138@2026-11-13

138So far as concerns, first, the guarantees of loans granted to GS, it must be stated that they were given in favour of an undertaking in difficulty which supplied no adequate consideration. A private investor would not as a rule have given GS loans of that sort. As the Commission has noted in paragraph 45 of the grounds of the contested decision, State guarantees given to firms in difficulty must be regarded as aid equal to the amount of the loan guaranteed. It follows that the obligations in connection with that loan imposed on the undertaking arise from the grant of aid and may not, therefore, be included in the calculation of the normal cost of winding up.

Federal Republic of Germany v Commission of the European Communities (C-334/99)

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