Ashurst advises Luxembourg Government in successful appeal before the EU Court of Justice in Engie tax ruling case

Global law firm Ashurst has advised the Luxembourg Government in relation to the judgement of the Grand Chamber of the EU Court of Justice handed down on 5 December 2023 in the Engie tax ruling case.

The Luxembourg Government was successful in its challenge. The Court annuls the judgment of the General Court and the decision of the Commission. It confirms that the tax treatment of Engie does not constitute State aid. In the wake of the Fiat judgment, the Court confirms that Member States are exclusively competent to define their national tax rules (including their anti-abuse rules) and that this should be the starting point to any State aid analysis in the tax field. The Commission is therefore in principle bound by the interpretation of national law, practice and case-law prevailing in the Member State in question. The judgment is significant as it puts clear limits to the Commission's powers in the area of fiscal State aid. 

The Ashurst team was led by Brussels competition partner Denis Waelbroeck and associate Jessica Bracker.