Commission Decision of 17 September 2008 on State aid C 61/07 (ex NN 71/07) — Greece Olympic Airways Services/Olympic Airlines (notified under document C(2008) 5073) Text with EEA relevance

• Articles: 6

Article 1

1.   The continued forbearance of the Greek State towards Olympic Airways Services in relation to its tax and social security debts to the State which are estimated to stand at least at EUR 590,4 million constitutes illegal state aid to Olympic Airways Services which is incompatible with the Treaty.

2.   The continued forbearance of the Greek State toward Olympic Airlines in respect of aircraft leases estimated in the sum of EUR 137,2 million, debts owed to Olympic Airways Services and Olympic Aviation estimated at totalling EUR 86,3 million, debts owed to the Hellenic Civil Aviation Authority of EUR 4,5 million and Spatosimo tax of at least EUR 38,1 million constitutes illegal state aid to Olympic Airlines which is incompatible with the Treaty.

3.   The special creditor protection granted through Greek legislation to Olympic Airways Services and Olympic Airlines constitutes illegal state aid to both companies which is incompatible with the Treaty.

Article 2

1.   Greece shall recover the aid referred to in Article 1 from the beneficiary.

2.   The sums to be recovered shall bear interest from the date on which they were put at the disposal of the beneficiary until their actual recovery.

3.   The interest shall be calculated on a compound basis in accordance with Chapter V of Commission Regulation (EC) No 794/2004  ( 47 ) as amended by Regulation (EC) No 271/2008  ( 48 ) .

4.   Greece shall cancel all outstanding payments of the aid referred to in Article 1 with effect from the date of adoption of this decision.

Article 3

1.   Recovery of the aid referred to in Article 1 shall be immediate and effective.

2.   Greece shall ensure that this decision is implemented within four months following the date of notification of this Decision.

Article 4

1.   Within two months following notification of this Decision, Greece shall submit the following information to the Commission:

(a)

the total amount (principal and recovery interests) to be recovered from the beneficiary;

(b)

a detailed description of the measures already taken and planned to comply with this Decision;

(c)

documents demonstrating that the beneficiary has been ordered to repay the aid.

2.   Greece shall keep the Commission informed of the progress of the national measures taken to implement this Decision until recovery of the aid referred to in Article 1 has been completed. It shall immediately submit, on simple request by the Commission, information on the measures already taken and planned to comply with this Decision. It shall also provide detailed information concerning the amounts of aid and recovery interest already recovered from the beneficiary.

Article 5

Greece shall immediately suspend all further payments of aid to Olympic Airways Services and Olympic Airlines.

Article 6

This Decision is addressed to the Hellenic Republic.