CJEU upholds recovery of unlawful aid under Madeira Free Zone scheme
The Court of Justice has rendered a judgment in case Agropalma Holdings and Others v Commission (C-173/25 P), concerning tax advantages granted under the Madeira Free Zone (ZFM) State aid scheme. The appeal challenged the General Court’s judgment upholding the Commission decision finding that the Scheme had been implemented in breach of the conditions attached to its approval and ordering recovery of the incompatible aid.
The case focused on the condition requiring the creation or maintenance of jobs in Madeira. The Court confirmed that the employment condition applied to all undertakings registered in the ZFM, including Portuguese holding companies (SGPS). In addition, the Court rejected the argument that SGPS could not qualify as “undertakings” for State aid purposes.
For more information, see the CJEU’s judgment (not available in English at the time of publication)