• Professional News
  • 07 February 2013

The European Court of Justice accepts Danish state aid for vessels registered in the Danish DIS and DAS register

The European Court of Justice on 24 January 2013 gave its final ruling in the state aid case filled by 3F – a Danish workers union – and dismissed the appeal by 3F in its entirety.

The case concerned the Danish tax exemption scheme for seafarers employed on vessels registered in the DAS and DIS register.

By decision of 13 November 2002, the Commission found that the disputed excemption scheme constituted state aid. Nevertheless, the Commission concluded that the state aid was compatible with the common market due to, inter alia, its contribution to consolidation of the competitiveness of EU-flagged vessels and the social security of EU – as well as third country seafarers.

The case was tried by several instances of the European Court, but on 24 January 2013, the European Court of Justice gave its final ruling. The ECJ dismissed all three pleas raised by 3F and held that the Commission did not act in breach of its duties by not initiating a formal investigation of the Danish tax reduction scheme.

(Judgment by the European Court of Justice on 24 January 2013 in case C-646/11 P, Fælles Fagligt Forbund (3F) vs. European Commission)

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