Summaries of judgments: Ryanair DAC/Commission (T-388/20)

Summaries of judgments made in collaboration with the Portuguese judges and référendaire of the General Court (Maria José Costeira, Ricardo Silva Passos and Esperança Mealha)
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Judgment of the General Court of 14 April 2021 (Tenth Chamber) Case T‑388/20 Ryanair DAC v Commission

State Aid – Aid granted by Finland to Finnair in the context of the COVID-19 pandemic – Decision not to raise any objections- Compatibility with Article 107(3)(b) TFEU – Measure intended to remedy a serious disturbance in the economy of a Member State – Equal treatment – Freedom of establishment – Freedom to provide services – Duty to state reasons

1. Facts

On 13 May 2020, Finland notified the Commission of an aid measure in the form of a State guarantee in favour of the Finnish airline, Finnair, aimed at helping the latter obtain a loan of €600 million from a pension fund to cover its working capital needs. The guarantee, which was supposed to cover 90% of that loan, was limited to a maximum duration of three years.

Referring to its communication on the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak, the Commission classified the guarantee granted to Finnair as State aid which is compatible with the internal market in accordance with Article 107(3)(b) TFEU. Under that provision, aid intended to remedy a serious disturbance in the economy of a Member State may, under certain circumstances, be considered to be compatible with the internal market.

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Covid-19: a matter of security

by Rafaela Figueiredo Garcia Guimarães (Master’s student in Human Rights at University of Minho)

We must declare war on this virus”, asserted the Secretary-General of the United Nations (UN), António Guterres, when commenting on the global response to the Covid-19 pandemic, on March 13, 2020[1]. On April 23, 2020, the Director-General of the World Health Organization (WHO), declared that “the war against Covid-19 is far from won by the Planet[2]. By the same token, Bruce Aylward, Senior Advisor on Organizational Change to the WHO Director-General, also stated at a press conference on March 26, 2021, that “we are at war with the virus, not against each other, and the common goal is to end the coronavirus[3]. Josep Borrell, the High Representative on behalf of the European Union (EU), in his declaration on April 3, 2020, proclaimed that “this is a time when we should spend all of our energy and resources in the fight against this common global threat – the coronavirus[4]. Likewise, German Chancellor Angela Merkel, in her speech to the nation on March 18, 2020, acknowledged that “there has not been a challenge like this since World War II, which depends so much on a joint action of solidarity[5], and the French President, Emmanuel Macron, on March 16, 2020, openly declared that “we are at war and that the enemy, although invisible, is here[6]. “This is a war! It is really a war we are dealing with,” assures the Portuguese President, Marcelo Rebelo de Sousa, on March 18, 2020, in his message to the Portuguese people[7]. Last but not least, the President of the United States of America, Joe Biden, on January 21, 2021, stated publicly the endorsement of a “large-scale war effort to fight the pandemic[8].

Since WHO’s public announcement, on March 11, 2020, the disease caused by the SARS-COV-2 coronavirus and on the fact that we were in the face of a pandemic, Covid-19 has been treated as a security issue, with coronavirus being the global enemy that needs to be tackled and eliminated. Thus, the health crisis Covid-19 gave rise to came to be considered a threat to global security.

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Much ado about the Social Summit?

by Graça Enes (Faculty of Law of the University of Porto and CIJE)

The Porto Social Summit was the high point of the Portuguese Presidency, a two-day event (May 7-8th) intended to achieve a strong commitment from Member States, European institutions, social partners, and civil society towards the implementation of the Action Plan for the European Pillar of Social Rights[1]. Several side events occurred along the weeks before the Summit, in Portugal and elsewhere[2], anticipating the debate.

In the days before, important members of the Portuguese Government made public statements stressing the ambition of the event. Ana Paula Zacarias, the Secretary of State for European Affairs, stated that the Porto Social Summit could “move principles to action”.

On May 7th, the Summit webpage announced: “Porto Social Summit starts today, defining EU policies for the next decade”. The stakes were high.

During the afternoon of the first day, a High-Level Conference was held for an extended debate, involving members of the Commission, the President of the European Parliament, the President of the European Council, Heads of Government, and social partners. In addition to the implementation of the European Pillar of Social Rights, issue that was addressed by the Commissioner for Jobs and Social Rights, Nicolas Schmitt, the discussion focused around three major subjects: work and employment; skills and innovation; welfare state and social protection. The participation in the debate went beyond the European Union, with the presence of the Director-General of the International Labour Organization and the Secretary-General of the Organization for Economic Cooperation and Development. The works of the conference were live streamed, and everyone could follow the debates taking place at the Alfândega building. At the opening session, António Costa declared: “We are here today to renew the European social contract, making a commitment, each one at their own level, to develop innovative and inclusive responses”. At the end of the day, Ursula von der Leyen stated: “The Porto Social Summit is our joint commitment to build a social Europe that is fit for our day and age and that works for everyone”. The tangible outcome of this debate was the “Porto Social Commitment”[3], an encompassing compromise of the EU institutions, Member States and European social partners that was being prepared for weeks and was solemnly presented by the three Presidents on the evening of May 7th.

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Editorial of May 2021

Alessandra Silveira, Joana Covelo de Abreu, Pedro Madeira Froufe (Editors) and Tiago Sérgio Cabral (Managing Editor)

Conference on the future of Europe and the defence of European values

On March 10th, 2021, following a long negotiation, the Presidents of the European Parliament, the Council of the EU and the European Commission signed the “Joint Declaration” on the “Conference on the Future of Europe”, holding its joint presidency.[1] The Conference will be officially launched on May 9th, 2021 in an inaugural session in Strasburg and it will be extended until the Spring of 2022. It aims at creating a new public forum for an open, inclusive, transparent and structured debate with Europeans around the issues that matter to them and affect their everyday lives. A new Special Eurobarometer, published one day before the signing of the Joint Declaration, focuses on the Conference and measures attitudes towards it and some of the key themes to be covered.[2]

Three-quarters of Europeans consider that the Conference will have a positive impact on democracy within the EU: 76% agree that it represents significant progress for democracy within the EU, with a clear majority supporting this view in every EU Member State. The very vast majority of Europeans (92%) across all Member States demand that citizens’ voices are “taken more into account in decisions relating to the future of Europe”. While voting in EU elections is clearly regarded (by 55% of respondents) as the most effective way of ensuring voices are heard by decision-makers at EU level, there is very strong support for EU citizens having a greater say in decisions relating to the future of Europe. 45% of Europeans declare themselves “rather in favour of the EU but not in the way it has been realised so far”. Six in ten Europeans agree that the Coronavirus crisis had made them reflect on the future of the EU while 39% disagree with this.

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