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Member States Must Cede To EU On State Aid: Court

Law360 (July 18, 2007, 12:00 AM EDT) -- The European Court of Justice handed down a preliminary ruling in a state aid case on Wednesday, saying the principle of res judicata doesn't prevent European Union laws from taking precedence over conflicting national laws.

The decision, which relies upon the EU's clearance process policy for proposed state aid for industry, caps a dispute over tax breaks for steel company Lucchini SpA that has been bouncing between Italian and EU courts and authorities since 1985.

At issue in the case was a conflict between two precedents:...
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