Greece fined for illegal aid to Olympic

THE European Court of Justice has fined Greece €2 million (US$2.8m) for not recovering illegal state aid from Olympic Airways, now Olympic Airlines.

The Greek government gave €41 million ($57 million) to the carrier as part of a failed attempt to restructure the organisation back in 2002. The European Commission ruled that the aid was unlawful and demanded that Greece recover the money. The government claims that the money has been returned but the EC says otherwise.

Part of the EC’s requirements for approval of Olympic’s privatisation was that the money was recovered. Now after the ruling Greece has one month to claim the money or it will be fined €16,000 ($22,400) a day until it does.

The new privatised company will start flying as Olympic Air on 1 October.