Judgment_paragraph 82 · Deutsche Bahn AG v Commission of the European Communities (T-351/02)

82The applicant admits that the Commission cannot rule on the validity of directives of the Council. However, it states that the Commission can and must check whether the transposition by a Member State of the tax exemption provided for by Directive 92/81 complies with the provisions of the Treaty concerning aid and satisfy itself that the national law does not, as from the date of transposition, have the effect of creating a distortion of competition which is incompatible with the common market. The Commission must also review the residual room for manœuvre which Member States have for extending the tax exemption to rail transport under Article 8(2)(c) of that Directive. The applicant states, in this respect, that Case T-82/96 ARAP and Others v Commission [1999] ECR II-1889, paragraph 14, is not relevant as it relates to a regulation, which does not need to be transposed by a Member State, and not to a directive.