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Denmark

EC demands recovery of unauthorised aid for Oresund link

The European Commission (EC) has finalised its assessment of the Danish support for the Oresund Fixed Link. The EC concluded that the state guarantees granted by Denmark and Sweden do not constitute new aid and do not violate EU state aid rules. However, some of the Danish tax concessions were categorised as incompatible with EU state aid law. Denmark must now reclaim the unlawful aid. The investigation, which was launched in February 2019, is based on a judgement by the Court of Justice of the European Union in 2018, which partially annulled an earlier decision by the EC. State guarantees were already granted in 1992 and are therefore considered existing aid that does not need to be reassessed. The special tax treatment of the Danish parent company of the operating consortium is only considered new aid for certain periods and must now be recovered from Denmark. The exact amount to be recovered has not yet been determined.