Court of Justice of the European Communities (including Court of First Instance Decisions)

JUDGMENT OF THE GENERAL COURT (Sixth Chamber)

10 May 2023 (*)

(State aid – Measures to support enterprises in the context of the COVID-19 outbreak in the Netherlands – Decision not to raise any objections – Temporary framework for State aid measures – Obligation to state reasons)

In Case T‑513/21,

Bastion Holding BV, established in Amsterdam (Netherlands), and the other applicants whose names are listed in the annex, (1) represented by B. Braeken, T. Hieselaar and L. Elzas, lawyers,

applicants,

v

European Commission, represented by V. Bottka and M. Farley, acting as Agents,

defendant,

THE GENERAL COURT (Sixth Chamber),

composed, at the time of the deliberations, of A. Marcoulli, President, J. Schwarcz and R. Norkus (Rapporteur), Judges,

Registrar: P. Cullen, Administrator,

having regard to the written part of the procedure,

further to the hearing on 21 September 2022,

gives the following

Judgment

1        By their action under Article 263 TFEU, the applicants, Bastion Holding BV, Bastion Holding Een BV, and Bastion Holding Twee BV, and the 33 individual Bastion hotels (together, ‘Bastion’), seek the annulment of Commission decision C(2021) 4735 final of 22 June 2021 on State Aid SA.63257 (2021/N) – The Netherlands – Fourth amendment of the direct grant scheme to support the fixed costs for enterprises affected by the COVID-19 outbreak (‘the contested decision’).

 Background to the dispute

2        Bastion is a company governed by Netherlands law whose activity consists in providing hotel accommodation services to consumers. On account of the number of its employees and its annual balance sheet, Bastion is regarded as a large enterprise.

 Initial scheme

3        On 18 June 2020, the Kingdom of the Netherlands notified the European Commission of an aid measure in the form of direct grants to undertakings affected by the COVID-19 outbreak (‘the initial scheme’). That notification was made under the Commission communication entitled ‘Temporary framework for State aid measures to support the economy in the current COVID-19 outbreak (OJ 2020 C 91 I, p. 1), as amended on 3 April 2020 (OJ 2020 C 112 I, p. 1) and 8 May 2020 (OJ 2020 C 164, p. 3) (‘the temporary framework’).

4        The initial scheme aims to ensure that sufficient liquidity remains available in the market to counter the liquidity shortage faced by undertakings as a result of the COVID-19 pandemic, in order to ensure that the disruption caused by the pandemic does not undermine the viability of the undertakings and, thus, to preserve the continuity of economic activity during and after the pandemic. The scheme applies throughout the territory of the Netherlands and covers the period from June to September 2020.

5        The Netherlands authorities had taken the view that the COVID-19 outbreak affected all sectors of the national economy, which had contracted by 1.7% in the first quarter of 2020 compared to the previous quarter. In particular, they had considered that the ‘Horeca’ sector (hotel, restaurant, café) was the most affected, with a reduction of 18%, and that the risks associated with the crisis affected small and medium-sized enterprises in particular (‘SMEs’), which constituted 99.8% of undertakings and represented 71% of the wage bill in 2018. Consequently, the Netherlands authorities took the view that the continuity of the activities of those undertakings in particular had to be preserved.

6        The beneficiaries of that aid measure were solely SMEs, with the exception of those operating in certain sectors of the economy. SMEs are defined therein as enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million, in accordance with Annex I to Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 [TFEU] (OJ 2014 L 187, p. 1).

7        Each SME concerned could receive, under the initial scheme, a maximum amount of aid of EUR 50 000 to cover only the costs necessary to overcome the lack of liquidity resulting from the COVID-19 outbreak, such as fixed costs. Aid was granted to SMEs that had lost at least 30% of their turnover. That loss is measured as the difference between the turnover in the period covered by the aid and that in the reference period, that is to say from June to September 2019. The fixed costs of SMEs during that period are calculated by multiplying the turnover in the reference period by a sector-specific constant and must be at least EUR 4 000.

8        On 26 June 2020, the Commission decided not to raise objections to that measure and, therefore, adopted Decision C(2020) 4442 final on State aid SA.57712 (2020/N) – The Netherlands – COVID-19: direct grant scheme to support the fixed costs for small and medium-sized enterprises affected by the COVID-19 outbreak (‘the initial decision’). In that decision, the Commission concluded that the initial scheme constituted State aid within the meaning of Article 107(1) TFEU. The Commission also found that that scheme was necessary, appropriate and proportionate to remedy a serious disturbance in the Netherlands economy and that it satisfied all the relevant conditions set out in the temporary framework. The Commission therefore considered that the initial scheme was compatible with the internal market in accordance with Article 107(3)(b) TFEU.

9        The applicants did not challenge that decision.

 First amendment to the initial scheme

10      On 13 November 2020, the Kingdom of the Netherlands notified the Commission of a first amendment to the initial scheme which, inter alia, extends the period covered by the scheme, from 1 October to 31 December 2020, and increases the maximum amount of aid per undertaking, from EUR 50 000 to EUR 90 000. The calculation of the amount of the aid remains based on the same conditions and formula as those described in the initial decision, in particular a decrease in turnover of 30% or more. However, first, the eligibility threshold concerning the minimum amount of fixed costs is adjusted downwards, from EUR 4 000 for the period from July to September 2020 to EUR 3 000 for the period from October to December 2020. Secondly, for the latter period, drinking and eating facilities, which are temporarily closed by the government, will receive an increment to their aid to help cover the costs related to their closure. That increase will amount to 2.8% of their loss of turnover during the compensation period.

11      The obligation to be an SME in order to be eligible to receive the aid remains unchanged.

12      On 20 November 2020, the Commission decided not to raise objections to that first amendment to the initial scheme on the ground that it was compatible with the internal market pursuant to Article 107(3)(b) TFEU (Commission Decision C(2020) 8286 final of 20 November 2020 on State aid SA.59535 (2020/N) – The Netherlands – Amendment of the scheme SA.57712 – COVID-19: direct grant scheme to support the fixed costs for small and medium-sized enterprises affected by the COVID-19 outbreak).

13      In particular, the Commission considered that the amendments made to the initial scheme did not affect the conclusion that that scheme satisfied the conditions of point 22 of the temporary framework, namely that the total aid was less than EUR 800 000 per undertaking and was granted on the basis of a scheme with an estimated budget.

14      The applicants brought an action under Article 263 TFEU against that decision, registered under the number T‑102/21.

 Second amendment to the initial scheme

15      On 4 January 2021, the Netherlands notified the Commission of a second amendment to the initial scheme to introduce two new sub-measures and make a series of amendments to the existing measure in respect of the period from October to December 2020, as regards inter alia the formula for calculating the amount of the aid. Eligibility under the measure remains limited to SMEs.

16      In particular, the second amendment introduces sub-measure (a), which provides that an SME is eligible if it has lost at least 30% of its turnover in the period from January to March 2021 as compared with the reference period. The amount of aid is capped at EUR 90 000 and is intended to cover in part the fixed costs of the beneficiaries.

17      On 9 February 2021, the Commission decided not to raise objections to the abovementioned second amendment on the ground that it was compatible with the internal market pursuant to Article 107(3)(b) TFEU (Commission Decision C(2021) 942 final of 9 February 2021 – State Aid SA.60166 (2021/N) – The Netherlands – Amendment to the aid scheme SA.57712 as already amended by (State aid) SA.59535, and new sub-measures on COVID-19: direct grant scheme to support the fixed costs for enterprises affected by the COVID-19 outbreak).

18      Like the initial decision, that decision was not challenged by the applicants.

 Third amendment to the initial scheme

19      On 8 March 2021, the Netherlands notified the Commission of a third amendment to the initial scheme to introduce, inter alia, certain amendments to sub-measure (a), namely:

–        sub-measure (a) is extended to large enterprises;

–        the formula for calculating the amount of aid is amended, with the subsidy rate being replaced by a fixed percentage of 85%;

–        the maximum aid per undertaking is increased to EUR 550 000 for SMEs and EUR 600 000 for large enterprises;

–        the minimum amounts of the subsidy and the eligible costs are amended;

–        the aid may be granted provided that its nominal value, for all measures granted in accordance with Section 3.1 of the temporary framework, does not exceed EUR 1 800 000 per undertaking, EUR 270 000 per undertaking active in the fishery and aquaculture sector and EUR 225 000 per undertaking active in the primary production of agricultural products;

–        the reference period for calculating the 30% turnover loss is amended for undertakings which started operating after March 2019;

–        the estimated budget for sub-measure (a), as amended, is increased to EUR 2 953 million.

20      On 15 March 2021, the Commission decided not to raise objections to that third amendment to the initial scheme on the ground that it was compatible with the internal market pursuant to Article 107(3)(b) TFEU (Commission Decision C(2021) 1872 final of 15 March 2021 on State aid SA.62241 (2021/N) – The Netherlands – Third amendment of the direct grant scheme to support the fixed costs for enterprises affected by the COVID-19 outbreak).

21      The applicants brought an action under Article 263 TFEU against that decision, registered under the number T‑289/21.

 Fourth amendment to the initial scheme and contested decision

22      On 7 June 2021, the Kingdom of the Netherlands notified the Commission of a fourth amendment to the initial scheme to introduce, inter alia, an increase in the maximum amount of aid granted to large undertakings under sub-measure (a), which is set at EUR 1 200 000 per undertaking. In addition, in the formula for calculating the amount of the aid, the subsidy rate is set at 100%.

23      The current scheme covers the period from April to June 2021.

24      On 22 June 2021, by the contested decision, the Commission decided to not raise any objection against that fourth amendment to the initial scheme, on the ground that it was compatible with the internal market in accordance with Article 107(3)(b) TFEU.

 Forms of order sought

25      The applicants claim that the Court should:

–        annul the contested decision in its entirety;

–        order the Commission to bear the costs.

26      The Commission contends that the Court should:

–        dismiss the action;

–        order the applicants to pay the costs.

 Law

27      In support of their action, the applicants raise two pleas in law alleging, first, infringement of the obligation to initiate the formal investigation procedure and, secondly, infringement of the obligation to state reasons.

 The first plea in law, alleging infringement of the obligation to initiate the formal investigation procedure

28      By the first plea in law, the applicants claim that the current aid scheme raises doubts as to its compatibility with the internal market. In that regard, they submit, in essence, that the State aid measure at issue is, first, inappropriate to remedy the serious disturbance in the Netherlands economy as a result of the COVID-19 outbreak and, secondly, disproportionate to the objective it aims to achieve.

29      In the first place, with regard to the inappropriateness of the aid measure to remedy a serious disturbance in the economy, the applicants submit, in essence, that an aid measure which is capped, as regards large undertakings, at EUR 1 200 000 for one quarter of a year is not sufficient to achieve such an objective. The Commission failed to examine whether the amount of aid granted to large undertakings and the distinction between large undertakings and SMEs were appropriate for achieving the objective in question.

30      According to the applicants, large undertakings, especially in the hotel sector, are affected to a greater extent by the COVID-19 outbreak and by the governmental measures than their SME competitors. Bastion, being a large undertaking, thus suffered a loss of turnover significantly higher than the average loss of turnover suffered by undertakings active in the worst hit sectors of food and accommodation. The State aid measure does not take this into account at all.

31      Furthermore, since the number of large undertakings in the hotel sector is very limited, eliminating the current cap of EUR 1 200 000 would not burden the estimated budget as indicated by the Netherlands authorities.

32      The State aid measure is therefore inappropriate to achieve its objective. On that basis, the Commission should have, at the very least, initiated the formal investigation procedure.

33      In the second place, as regards the disproportionate nature of the aid measure, the applicants state that they are, in principle, in favour of the approval of the State aid measure and agree that the granting of aid, including to SMEs, is necessary in order to combat the serious disturbance in the Netherlands economy as a result of the COVID-19 outbreak. They consider that SMEs and large undertakings were ‘(at least) equally effected’ by the COVID-19 outbreak and are in need of financial assistance. However, the applicants do not agree with the cap on aid granted to large undertakings. They submit that the amount of aid granted to SMEs is too high in comparison with the amount granted to large undertakings and thus gives SMEs an unfair competitive advantage. That distortive effect on competition is even more significant as the aid measure in favour of SMEs has been in force for much longer

34      According to the applicants, unlike SMEs, which can receive up to EUR 550 000 per individual hotel, large undertakings can receive only EUR 1 200 000 in total. In the case of Bastion this would amount to a mere EUR 36 000 per hotel. The lack of support from the State and the relatively low cap on the maximum aid the applicants are eligible to receive under the current scheme threatens their long-term competitiveness.

35      In addition, the applicants submit that neither SME status nor the threshold set for the annual balance sheet of the undertaking can constitute relevant criteria for determining the amount of aid granted under the State aid measure. In that regard, they submit, first, that the number of employees is not a suitable criterion for determining the size of a company and calculating the amount of aid on that basis. Secondly, the balance sheet is the result of a difference in commercial strategy rather than being an indication that an undertaking needs aid.

36      The applicants conclude that the aid measure at issue goes beyond what is necessary to achieve the aim of remedying a serious disturbance in the Netherlands economy. This has an immediate effect on competition as well as significant consequences for the long term.

37      The Commission disputes the applicants’ arguments.

38      Under Article 107(3)(b) TFEU, aid intended inter alia to remedy a serious disturbance in the economy of a Member State may be considered to be compatible with the internal market.

39      It must be borne in mind that, as a derogation from the general principle of the incompatibility of State aid with the internal market laid down in Article 107(1) TFEU, Article 107(3)(b) TFEU must be interpreted strictly (see judgment of 19 September 2018, HH Ferries and Others v Commission, T‑68/15, EU:T:2018:563, paragraph 142 and the case-law cited).

40      In accordance with the case-law, the Commission may declare aid compatible with Article 107(3) TFEU only if it can establish that the aid contributes to the attainment of one of the objectives specified, something which, under normal market conditions, a recipient undertaking would not achieve by using its own resources. In other words, the Member States must not be permitted to make payments which, although they would improve the financial situation of the recipient undertaking, are not necessary for the attainment of the objectives specified in Article 107(3) TFEU (see judgment of 19 September 2018, HH Ferries and Others v Commission, T‑68/15, EU:T:2018:563, paragraph 143 and the case-law cited).

41      The principle of proportionality requires the measures imposed by the acts of the EU institutions to be appropriate to achieve the objective pursued and not to exceed the limits of what is necessary for that purpose. As a general principle of EU law, the principle of proportionality is a criterion for the lawfulness of any act of the EU institutions, including decisions taken by the Commission in its capacity as competition authority. It is not acceptable for aid to include arrangements, in particular as regards its amount, whose restrictive effects exceed what is necessary to enable the aid to attain the objectives permitted by the TFEU (see judgment of 19 September 2018, HH Ferries and Others v Commission, T‑68/15, EU:T:2018:563, paragraph 144 and the case-law cited).

42      In addition, the fact that the inevitable consequence of the aid itself is often protection and therefore some partitioning of the market in question, as far as concerns the production of undertakings which do not derive any benefit from it, cannot imply that the aid produces restrictive effects which exceed what is necessary to enable it to attain the objectives permitted by the Treaty (judgment of 22 March 1977, Iannelli & Volpi, 74/76, EU:C:1977:51, paragraph 15).

43      It is clear from the general scheme of the Treaty that the procedure under Article 108 TFEU must never produce a result which is contrary to the specific provisions of the Treaty. Accordingly, State aid, certain conditions of which contravene other provisions of the Treaty, cannot be declared by the Commission to be compatible with the internal market. Similarly, State aid, certain of the conditions of which contravene the general principles of EU law, such as the principle of equality of treatment, cannot be declared by the Commission to be compatible with the internal market (judgment of 15 April 2008, Nuova Agricast, C‑390/06, EU:C:2008:224, paragraphs 50 and 51; see, to that effect, judgment of 22 September 2020, Austria v Commission, C‑594/18 P, EU:C:2020:742, paragraph 44).

44      In addition, in the application of Article 107(3) TFEU, the Commission enjoys wide discretion, the exercise of which involves complex economic and social assessments (see judgment of 29 July 2019, Bayerische Motoren Werke and Freistaat Sachsen v Commission, C‑654/17 P, EU:C:2019:634, paragraph 80 and the case-law cited), with the result that judicial review must be confined to establishing that the rules of procedure and the rules relating to the duty to give reasons have been complied with, and to verifying that the facts relied on are accurate and that there has been no error of law, manifest error in the assessment of the facts or misuse of powers (see judgment of 22 December 2008, Régie Networks, C‑333/07, EU:C:2008:764, paragraph 78 and the case-law cited).

45      In the present case, it should be borne in mind that the aid measure at issue consists in direct grants to undertakings affected by the COVID-19 outbreak in order to ensure that they continue to have sufficient liquidity. Thus, the viability of the undertakings in receipt of the aid is not undermined and therefore the continuity of their economic activity during and after the outbreak is preserved.

46      In the initial decision and the contested decision, read in the light of the decisions relating to the second and third amendments of the initial scheme, the Commission found that the normal functioning of the credit markets was seriously disturbed by the COVID-19 outbreak, which affected the wider economy and the real economy of the Member States. Furthermore, it follows from the contested decision, read in the light of the temporary framework, the initial decision and the previous amendment decisions, that the lockdown measures adopted by the Member States affect undertakings and that the aid measures are justified, for a limited period, in order to remedy the liquidity shortage faced by those undertakings and to ensure that the disruptions caused by the outbreak of COVID-19 do not undermine their viability, especially that of SMEs.

47      In addition, the temporary framework provides that, in order for the aid scheme to be regarded as compatible with the internal market, the nominal value of all aid measures granted in the context of Section 3.1 of that framework is capped at EUR 1 800 000 for enterprises active in sectors other than those of fishing and fish farming or the primary agriculture sector.

48      The applicants submit that they are, in principle, in favour of the approval of a State aid measure intended to support enterprises severely affected by the COVID-19 outbreak and agree that the granting of aid is necessary in order to combat the serious disturbance in the Netherlands economy as a result of the COVID-19 outbreak. Furthermore, the applicants do not submit that the aid, including that granted to SMEs, exceeds the cap set by the temporary framework.

49      Accordingly, it must be found that the objective of the aid scheme at issue satisfies the conditions set out by Article 107(3)(b) TFEU, since the existence of both a serious disturbance in the Netherlands economy because of the COVID-19 outbreak and significant negative effects of the latter on several sectors of activity including the Netherlands hotel sector is established to the requisite legal standard in the contested decision.

50      It is necessary now to examine the applicants’ arguments that, first, the amount of the aid measure at issue is not capable of remedying the serious disturbance in the economy appropriately, secondly, the enterprises in receipt of aid are treated differently even though they are in a comparable situation and, thirdly, the aid measure at issue is disproportionate in comparison to its objective.

 Inappropriateness of the aid measure

51      By their arguments regarding the allegedly inappropriate nature of the aid measure at issue to remedy the serious disturbance in the economy, the applicants submit, in essence, that the maximum amount of the aid granted to large enterprises is insufficient to achieve the objectives pursued by the aid scheme at issue.

52      In that regard, it should be borne in mind that there is no obligation for the Member States to grant aid intended to remedy a serious disturbance in the economy within the meaning of Article 107(3)(b) TFEU. More specifically, first, while Article 108(3) TFEU requires Member States to notify their plans as regards State aid to the Commission before they are put into effect, it does not, however, require them to grant any aid (order of 30 May 2018, Yanchev, C‑481/17, not published, EU:C:2018:352, paragraph 22). Secondly, an aid measure may be directed at remedying a serious disturbance in the economy, in accordance with Article 107(3)(b) TFEU, irrespective of the fact that it does not remedy that disturbance in its entirety. Consequently, it does not follow from either Article 108(3) TFEU or Article 107(3)(b) TFEU that Member States are obliged to remedy in its entirety a serious disturbance in their economy.

53      Furthermore, in the present case, it follows from paragraph 42 of the initial decision that the aid measure at issue is part of a series of measures adopted by the Netherlands authorities in order to remedy the serious disturbance in the economy of the Netherlands.

54      In those circumstances, the applicants’ argument that the Commission committed an error of law because the amount of the aid measure is insufficient to remedy effectively a serious disturbance in the economy must be rejected as ineffective.

 Observance of the principal of equality of treatment

55      The applicants submit, in essence, that the large enterprises were affected by the COVID-19 outbreak and by the government restrictions in the same manner as SMEs and that, consequently, they are in a comparable situation. The fixed costs of large enterprises should therefore have been compensated like those of SMEs. In order to examine that argument, it is necessary to verify whether the aid measure in question accords with the principle of equality of treatment.

56      In accordance with the case-law, observance of the principle of equality of treatment requires that comparable situations must not be treated differently and that different situations must not be treated in the same way unless such treatment is objectively justified (see judgment of 1 March 2017, SNCM v Commission, T‑454/13, EU:T:2017:134, paragraph 305 and the case-law cited).

57      The elements which characterise different situations, and hence their comparability, must in particular be determined and assessed in the light of the subject matter and purpose of the EU act which makes the distinction in question. The principles and objectives of the field to which the act relates must also be taken into account (judgment of 16 December 2008, Arcelor Atlantique et Lorraine and Others, C‑127/07, EU:C:2008:728, paragraph 26).

58      It follows from the temporary framework that, while it is true that the outbreak of COVID-19 affected all undertakings, SMEs were particularly exposed to a severe lack of liquidity. In that context, well-targeted public support, granted in particular by the Member States, was considered as necessary to support, in particular, SMEs, in order to ensure that sufficient liquidity was available on the market in order to counter the damage inflicted on healthy undertakings and to preserve the continuity of economic activity during and after the COVID-19 outbreak. Accordingly, State aid was justified and could be declared compatible with the internal market on the basis of Article 107(3)(b) TFEU, for a limited period, to remedy the liquidity shortage faced by undertakings, and ensure that the disruptions caused by the outbreak of COVID-19 did not undermine their viability, especially of SMEs.

59      It should therefore be noted that the temporary framework, which is the reference framework for assessing whether an aid measure granted in the context of the COVID-19 outbreak is compatible with the internal market pursuant to Article 107(3)(b) TFEU, recognises that SMEs are in a particular situation compared to larger undertakings, even though larger undertakings are currently included in the aid scheme.

60      Similarly, it should be noted that, as the Commission rightly emphasised, it follows from information submitted by the Netherlands authorities that SMEs and large enterprises were affected to different degrees by the COVID-19 outbreak and that their capacity to deal with the consequences of that outbreak was not the same, since the liquidity of SMEs was, in general, significantly less than that of large enterprises.

61      Accordingly, it must be found that SMEs and large enterprises were not in a comparable situation both as regards the provisions of the temporary framework of State aid measures seeking to support the economy in the context of the COVID-19 outbreak and as regards the situation of SMEs in the Netherlands economy.

62      In those circumstances, the applicants’ argument that, in essence, the Commission erred in law by treating large enterprises and SMEs differently, even though they were in a comparable situation, must be rejected as unfounded.

 Disproportionality of the aid measure

63      By their arguments concerning the allegedly disproportionate nature of the aid measure at issue, the applicants submit, in essence, that the measure distorts competition given that the amount of the aid that SMEs are entitled to, compared to that which large enterprises may claim, is proportionately more significant when viewed in relation to the reduction in turnover suffered, which enables SMEs to be more competitive.

64      In that regard, it should be noted that, in its decision of 9 February 2021 not to raise objections regarding the second amendment of the initial scheme, the Commission determined, in particular, that sub-measure (a), the application of which to large enterprises was maintained by the contested decision, while the maximum amount of the aid granted to those enterprises was increased, satisfied the four cumulative conditions to be State aid. In particular, paragraph 59 of that decision expressly states that the measure is liable to distort competition since it strengthens the competitive position of its beneficiaries. In the contested decision, the Commission found that the amendment of the aid scheme notified did not affect its categorisation as State aid as established in the second and third decisions relating to the amendment of the initial scheme.

65      Furthermore, it should be noted that, in order for a measure to constitute State aid within the meaning of Article 107(1) TFEU, it must necessarily confer a selective advantage on an undertaking or a group of undertakings and, thus, strengthen the competitive position of its beneficiaries. Indeed, during the hearing, the applicants agreed that the ability of an aid to distort competition and its selective nature are inherent characteristics of the concept of ‘State aid’. In so far as the different categories of beneficiaries of State aid are not in a situation which is legally and factually comparable, the difference in treatment between them cannot, as such, imply restrictive effects that go beyond what is necessary for the aid to attain the objectives permitted by the Treaty.

66      Accordingly, the fact that, in the present case, the applicants may suffer a competitive disadvantage compared to SMEs cannot amount to a serious difficulty obliging the Commission to initiate the procedure provided for in Article 108(2) TFEU.

67      As regards the applicants’ arguments claiming that the number of employees and the balance sheet were not relevant criteria to establish the size of the enterprise, they must be rejected since it is not disputed that the contested decision amounts to a correct application of Article 2 of Annex I to Regulation No 651/2014 in respect of which the applicants did not raise a plea of illegality under Article 277 TFEU.

68      As regards the applicants’ arguments that the Commission is released from its obligation to weigh the beneficial and adverse effects of the aid only where the aid measure notified is necessary, appropriate and proportionate in order to achieve its objective, it should be noted that it is based on a misreading of the judgment of 17 February 2021, Ryanair v Commission (T‑238/20, under appeal, EU:T:2021:91).

69      The applicants infer from paragraph 68 of the judgment of 17 February 2021, Ryanair v Commission (T‑238/20, under appeal, EU:T:2021:91), that Article 107(3)(b) TFEU imposes on the Commission an obligation to weigh the beneficial effects of the aid against its adverse effects on trading conditions and undistorted competition in the internal market where the conditions raised by that provision, namely that the Member State concerned is confronted with a serious disturbance in its economy and that the aid measures adopted to remedy that disturbance are, first, necessary for that purpose and, secondly, appropriate and proportionate.

70      In paragraph 68 of the judgment of 17 February 2021, Ryanair v Commission (T‑238/20, under appeal, EU:T:2021:91), the Court, comparing the provisions of Article 107(3)(b) TFEU with those of Article 107(3)(c) TFEU, held that the aid measures adopted on the basis of Article 107(3)(b) TFEU were presumed to be adopted in the interests of the European Union provided that the Member State concerned is indeed confronted with a serious disturbance in its economy and that the aid measures adopted to remedy that disturbance are, first, necessary for that purpose and, secondly, appropriate and proportionate, and that, consequently, contrary to what is provided for in Article 107(3)(c) TFEU, the Commission is not required to weigh the beneficial effects of the aid against its adverse effects on trading conditions and the maintenance of undistorted competition.

71      The Court concluded in paragraph 69 of the judgment of 17 February 2021, Ryanair v Commission (T‑238/20, under appeal, EU:T:2021:91) that Article 107(3)(b) TFEU does not require the Commission to weigh the beneficial effects of the aid against its adverse effects on trading conditions and the maintenance of undistorted competition, contrary to what is laid down in Article 107(3)(c) TFEU, but only to ascertain whether the aid measure at issue is necessary, appropriate and proportionate in order to remedy the serious disturbance in the economy of the Member State concerned.

72      In any event, it should be noted that the applicants do not claim that the aid measure at issue was not necessary and they have not demonstrated that it was not appropriate and proportionate.

73      Accordingly, the applicants’ argument concerning the Commission’s obligation to weigh the beneficial effects of the aid against its adverse effects on trading conditions and competition in the internal market must be rejected as unfounded.

74      In the light of all of the above, the first plea must be rejected as being in part unfounded and in part ineffective.

 The second plea in law, alleging infringement of the obligation to state reasons

75      The applicants submit, in essence, that, in the contested decision, the Commission has not sufficiently stated its reasons for deciding not to raise objections as to the compatibility of the aid measure with the internal market. In particular, the Commission did not address the appropriateness and proportionality of the distinction between SMEs and other undertakings, despite the fact that that distinction forms an integral part of the aid measure and threatens to distort competition.

76      Moreover, without taking into consideration the fact that SMEs were already eligible to receive aid from June 2020 under the previous schemes, the Commission deemed a further increase of the aid available to SMEs appropriate, without deliberating on the proportionality of that aid.

77      As regards the very short period within which the decision was adopted, the applicants submit that the specific context of the COVID-19 pandemic should not diminish the Commission’s obligation to state reasons anymore. They argue that the procedures put in place since the beginning of pandemic allow the Commission to focus more on the statement of reasons for its decisions. Therefore, according to the applicants, while being to some degree a relevant factor to take into consideration, the urgency of deciding on State aid measures is not a valid justification for the lack of reasoning in the decision.

78      The Commission disputes the applicants’ arguments.

79      It must be borne in mind that, although the statement of reasons for an EU measure required by Article 296(2) TFEU must show clearly and unequivocally the reasoning of the author of the measure in question, so as to enable the persons concerned to ascertain the reasons for the measure and to enable the Court to exercise its power of review, it is not required to go into every relevant point of fact and law. In addition, the question whether the duty to state reasons has been satisfied must be assessed with reference not only to the wording of the measure but also to its context and the whole body of legal rules governing the matter in question (see judgment of 7 February 2018, American Express, C‑304/16, EU:C:2018:66, paragraph 75 and the case-law cited).

80      In the present case, the contested measure is a decision not to raise any objections under Article 108(3) TFEU. It follows from the case-law that such a decision, which is taken within a short period of time, must simply set out the reasons for which the Commission takes the view that it is not faced with serious difficulties in assessing the compatibility of the aid at issue with the internal market, and that even a succinct statement of reasons for that decision must be regarded as sufficient for the purpose of satisfying the requirement to state adequate reasons laid down in Article 296(2) TFEU if it nevertheless discloses in a clear and unequivocal fashion the reasons for which the Commission considered that it was not faced with serious difficulties, the question of whether the reasoning is well founded being a separate matter (see judgment of 2 September 2021, Commission v Tempus Energy and Tempus Energy Technology, C‑57/19 P, EU:C:2021:663, paragraph 199 and the case-law cited).

81      As regards the context of the contested decision, it is characterised by the COVID-19 outbreak and the extreme urgency with which the Commission, first of all, adopted the temporary framework, providing both Member States and undertakings affected by the consequences of that outbreak with some guidance, then examined the measures that were notified to the Commission by those States, in particular, pursuant to that framework, and finally adopted the decisions relating to those measures, including the contested decision. In that regard, it follows from paragraphs 22 and 24 above that only fifteen days passed between the notification of the aid scheme at issue and the adoption of the contested decision.

82      Despite the nature of the contested decision and the exceptional circumstances surrounding its adoption, it should be noted that it contains 15 paragraphs – to which must be added inter alia the 86 paragraphs of the decision relating to the second amendment of the initial scheme that forms an integral part of the statement of reasons for the contested decision – and makes it possible to understand the factual and legal grounds on which the Commission decided not to raise objections to the aid scheme at issue. Thus, in the contested decision, the Commission set out, albeit sometimes succinctly, in view of the urgency of the matter, the reasons why the aid scheme at issue satisfied the conditions laid down in Article 107(3)(b) TFEU.

83      As regards the applicants’ argument that, where operators are placed in a comparable situation, the Commission is required to set out, in the context of a specific statement of reasons, how the difference in treatment established by the aid measure at issue is objectively justified, it suffices to recall that, in the present case, as noted in paragraph 61 above, SMEs and large enterprises were not in a comparable situation.

84      Furthermore, and in any event, since the contested decision, read in the light of the initial decision and the earlier decisions relating to amendments of the initial scheme, sets out, first, the characteristics of the aid scheme, including the eligibility criteria for it, and, secondly, albeit succinctly, the reasons why the Commission considered that that scheme was compatible with the internal market, it both enables the applicant to exercise its right to an effective remedy and enables the Court to exercise its power of review.

85      The applicants’ argument that the Commission did not take into account the aid that SMEs were able to receive under earlier measures is unfounded. While it is true that the contested decision does not contain a specific statement of reasons relating to the consideration of previous aid, it follows from the general scheme of that decision, and, in particular, from the fact that it concerns the amendment of the existing aid scheme, that the Commission did not assess the current aid scheme independently of the aid granted previously under the same legal framework. It is necessary, in particular, to note that the nominal value of aid granted in accordance with Section 3.1 of the temporary framework may not exceed the cap set out in that section, namely EUR 1 800 000. It follows that the Commission took into account the aid that SMEs were able to receive for the same period.

86      That finding cannot be called into question by the arguments that the applicants derive from the judgment of 19 May 2021, Ryanair v Commission (KLM; Covid-19) (T‑643/20, EU:T:2021:286). In that case, in order to examine the compatibility of the aid measure with the internal market, it was necessary to take into account operational, economic and organisational links between the Air France-KLM holding company and its subsidiaries Air France and KLM in order to assess the impact of the aid previously granted to another company in the same group of undertakings. That examination presupposed that the amount of aid, the beneficiary of the aid and the absence of a risk of cross-financing between the Air France-KLM holding company, KLM and Air France had been determined beforehand. The contested decision in that case did not include a sufficient statement of reasons in that regard.

87      That is not the situation in the present case, since it follows from the contested decision, read in the light of the decision relating to the second amendment of the initial scheme, that the maximum amount of aid that SMEs may receive for the period concerned is limited to EUR 550 000, which entails taking into account the aid already received for that period. As the potential number of SME recipients of the aid could be unlimited, the Commission cannot be required to provide a specific statement of reasons in respect of each of them.

88      Consequently, the second plea must also be rejected as unfounded and, accordingly, the action must be dismissed in its entirety.

 Costs

89      Under Article 134(1) of the Rules of Procedure of the General Court, the unsuccessful party is to be ordered to pay the costs if they have been applied for in the successful party’s pleadings. Since the applicants have been unsuccessful, they must be ordered to bear their own costs and to pay those of the Commission, in accordance with the form of order sought by the latter.

On those grounds,

THE GENERAL COURT (Sixth Chamber)

hereby:

1.      Dismisses the action;

2.      Orders Bastion Holding BV and the other applicant parties whose names are listed in the annex to bear their own costs and to pay those incurred by the European Commission.

Delivered in open court in Luxembourg on 10 May 2023.

*      Language of the case: English.

1      The list of the other applicants is annexed only to the version sent to the parties.

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