Legal challenge to German nuclear tax break fails

German municipal utilities not entitled to challenge European commission state aid decision, ECJ rules

Three German municipal utilities have lost an appeal at the European court of justice against tax breaks for nuclear power operators in Germany.  The three firms wanted the court to overturn a state aid ruling by the European commission from 2001.  The commission said a tax exemption for funds put aside for waste disposal and reactor decommissioning did not amount to a state subsidy.  But the court ruled the firms' appeal inadmissible last Thursday because they had not shown they were directly affected by the case.  It did not evaluate the commission decision itself.  See judgment in case C-176/06.

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