ECJ: Azores lower tax rate held to be "selective" within the meaning of the EC Treaty State aid rules

On 6 September 2006, the European Court of Justice (ECJ) gave its decision in the case of Portuguese Republic v. Commission of the European Communities (C-88/03), dismissing in its entirety the action for the annulment of European Commission Decision 2003/442/EC (the contested decision)..

(a) Facts. The case concerns an action for annulment of the contested decision brought by the Portuguese Republic under Art. 230 of the EC Treaty, which classified as State a…