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European Commission Withdraws UK Referral to Court of Justice for Failing to Recover State Aid in Gibraltar

12 October 2021

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Approved Changes

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United Kingdom-Gibraltar-European Union

The European Commission announced on 6 October 2021 that it has withdrawn (repealed) its decision to refer the UK to the Court of Justice of the European Union (CJEU) for failing to fully recover illegal State aid granted as a tax exemption for passive interest and royalties in Gibraltar, which predated the UK's withdrawal from the EU. Although the UK is no longer an EU Member State, it was still required to fully recover the illegal aid granted and could be referred to the CJEU since the obligation derived from a Commission decision adopted when the UK was part of...