Koiviston Auto not required to repay €44 million in state aid after EU ruling

The bus company Koiviston Auto has announced that it will not have to repay €44 million in state aid, according to a press release. This decision follows a ruling from the EU Court of Justice on Monday. The case revolves around loans previously granted by the City of Helsinki to its owned subsidiary, Helsingin Bussiliikenne Oy.

In 2019, the European Commission deemed these loans illegal and ordered their recovery. However, ownership of Helsingin Bussiliikenne had meanwhile transferred to Koiviston Auto. The Commission asserted that the controversial financial support could be reclaimed not only from the original recipient but also from the new owner, Koiviston Auto.

Now, the EU Court of Justice has overturned the Commission’s ruling. Both the City of Helsinki and the Koiviston Auto group had appealed the recovery order to the Court of Justice of the European Union.