Case C-119/05 Lucchini [2007] ECR I-6199

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Key Point

  • A national res judicata rule is disapplied where the previous decision of the national court is contrary to EU law

Facts

  • The Italian Ministry of Industry agreed to provide state aid to Lucchini, a struggling steel firm, subject to approval by the Commission
  • The Commission decision was that the aid was incompatible with the ECSC Treaty, but Italian courts approved the aid after the decision nonetheless
  • The Ministry did not appeal and thus the decision became final and the state aid was issued
  • After protest from the Commission, the Ministry decided to revoke the aid, this was challenged by Lucchini in Italian court
  • Lucchini sought to rely on the res judicata rule in the Italian Civil Code, which prohibits reopening proceedings on a matter already adjudicated on

Ruling

  • A res judicata provision is incompatible with Community law if it would prevent the recovery of state aid granted in breach of Community law

Judgment

  •  A national court which is called upon, within the exercise of its jurisdiction, to apply provisions of Community law is under a duty to give full effect to those provisions, if necessary refusing of its own motion to apply any conflicting provision of national legislation: [61]

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