Unlawful State Aid To SAS? Commission Now Opens In-Depth Investigation

In a recent judgment, the General Court ruled that the Commission's decision to approve Danish and Swedish State aid to SAS in 2020 in connection with the COVID-19 pandemic was unlawful. Denmark and Sweden had failed to sufficiently ensure that SAS would have an incentive to buy back the shares acquired by the Member States once SAS had overcome its financial difficulties. Against this background, the Commission has decided to review the Danish and Swedish aid scheme anew.

Decision of the General Court in case T-238/21 of 10 May 2023

The COVID Temporary Framework

Responding to the outbreak of COVID 19, the Commission issued a communication introducing a temporary framework for how it would deal with State aid granted to undertakings that have been particularly hit by the pandemic. The framework allowed for a wider-than-usual granting of State aid, but on condition that a number of requirements were met.