#62024CC0505Opinion of Advocate General Biondi of 26 March 2026
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This opinion addresses a legal dispute concerning state aid granted to Condor Flugdienst GmbH during the COVID-19 pandemic. It discusses the concept of rescue and restructuring aid within EU law, emphasizing the need for burden sharing and ensuring that such aid does not shield investors from the consequences of past business decisions. The opinion also reflects on legal interpretations and challenges related to compliance with EU guidelines on state aid.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Emphasis on the requirement of burden sharing in state aid
- Clarification on the legal standards applicable to rescue and restructuring aid
- Recognition of the risks of moral hazard associated with state aid
Obligations
What this law requires
Shareholders and subordinated creditors must absorb existing losses in full before any public funds are injected into the undertaking
State aid that enhances the beneficiary's equity position must be granted on terms that afford the State a reasonable share of future gains in value of the beneficiary, proportionate to the amount of State equity injected compared to remaining equity after losses are accounted for
Ensure adequate 'own contribution' to restructuring costs by the beneficiary undertaking
European Commission must adequately state reasons when approving state aid measures, including detailed analysis of compliance with burden sharing requirements
When serious difficulties exist in assessing compatibility of rescue and restructuring aid with EU law, the Commission must initiate the formal investigation procedure under Article 108(2) TFEU