Abstract
The recent Judgment of the European Court of Justice, delivered on September 11th, 2008, was expected to solve a number of fundamental questions dealing with the Cupo (quota) system in the Basque country and its compatibility with EU-law. In the preliminary ruling, referred by the Tribunal Superior de Justicia de la Comunidad Autonoma del Pais Vasco (Spain), the Court is asked whether a system, such as the Basque, that entails a different tax regime within a member State, as well as a lower tax liability complies with the Aid of State regime. The reasoning of the Court largely follows the previous Judgment of 6 September 2006, Case C 88/03 Portugal v. Commission, (“Azores”) where the Court departed from the thesis of the European Commission regarding regional measures. However, the application of the Azores reasoning to the Basque case is not all that simple, and the case gives rise to new questions on the compatibility of regional measures with the Aid of State regime.
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