Commission finds that arbitration award ordering Spain to pay compensation in favour of Antin is illegal and incompatible state aid

The European Commission has concluded that an arbitration award, in which Spain is ordered to pay compensation to Antin for the modification of a renewable electricity support measure, constitutes illegal state aid.

In the decision, the Commission instructs Spain not to pay any compensation based on the arbitration award. The decision also requires Spain to ensure that no payment, execution, or implementation of the arbitration award otherwise takes place.

The Commission has found that the arbitration award violates violates fundamental rules of EU law on the ultimate jurisdiction of the Court of Justice of the European Union (‘CJEU').

The decision recalls the obligation for national judges to assist Spain to ensure compliance with the Commission's decision, including by taking all measures necessary to prevent the recognition, execution, or implementation of the arbitration award in third countries.

The Commission has found that although the arbitration award itself constitutes a grant, no state aid has been effectively paid and there is no need for recovery. Spain must continue to resist attempts to enforce the award, in addition to not voluntarily paying out on the award.

A press release is available online.

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