EU Court Says Greek Shipyard Aid Unlawful

Greece’s struggling Skaramangas shipyards took another blow on Feb. 28 when the European Court of Justice ruled that government aid granted after 1992 was in breach of free market competition guidelines.
The court confirmed a 2006 decision by the European Commission which said the government had to recover 310 million euros ($406.4 million) in state aid to the shipyards that was not in line with the common market.
Greece claimed that the shipyards are essential to its military and that a stoppage of the civil activity of the shipyards would endanger the continuation of military production. The Luxembourg-based court didn’t buy the argument and said that EU member states are allowed “to take measures that are necessary for the protection of the essential interests of their security which are connected with the production of or trade in arms, munitions and war material.”
It added that, “The recognition of that protection must not, however, adversely affect competition in relation to products which are not intended for specifically military purposes.” There was no information on when the money had to be paid back and Greece has typically ignored EU court rulings that are adverse to the country.

See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!