BERLIN (AP) — A top European Union court on Wednesday annulled the EU’s approval of 550 million euros ($670 million) in state aid for German airline Condor, backing a challenge by budget carrier Ryanair but suspending the application of the ruling because of the impact of the COVID-19 pandemic.
The decision by the General Court was in many ways similar to rulings last month in which it annulled EU approval of 3.4 billion euros in state aid for the Netherlands’ KLM and a potential total of 1.2 billion euros for Portugal’s TAP.
In both of those cases, as with Condor, the application of the rulings was suspended pending new EU decisions.
The Luxembourg-based General Court said the EU’s executive arm, the European Commission, had to come up with a more complete reasoning.
The approval of loans to vacation carrier Condor to help it get through the collapse of holiday air travel in the pandemic came shortly after the parent company of Polish airline LOT pulled out of a takeover bid for the former subsidiary of collapsed tour operator Thomas Cook.
That resulted in an extension of insolvency proceedings, from which the restructured company emerged late last year. Last month, Condor announced that investor Attestor Capitol would take a majority stake.
The General Court found that it was “incumbent on the Commission to examine with particular care whether the cancellation and rescheduling of Condor flights as a result of the travel restrictions imposed in the context of the pandemic were in fact the decisive cause of the additional costs incurred by Condor as a result of the extension of the insolvency proceedings.”
The latest ruling was another success for Irish carrier Ryanair, which also challenged the aid to KLM and TAP but had been stymied in other attempts to challenge such state aid to other EU airlines.
The European Commission has approved several aid plans for struggling airline companies in the wake of the pandemic. Ryanair also argued that the aid constituted unfair state bailouts.
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7 Forever Stocks That Are Never Bad to Buy
Investors thought 2021 would be a less volatile year. That narrative has run into some problems. Sure, all the major indexes are up for the year. And that’s despite the NASDAQ’s gut-wrenching 10% drop in March.
But many investors don’t feel much like celebrating. In fact, many are concerned about the liquidity that continues to be pumped into the stock market. In 2020, the pandemic flooded the economy with $6 trillion dollars of stimulus.
However, in the last few months, the Federal Reserve has introduced another $6 trillion into the economy. We would have stopped counting, but the math is pretty easy. It’s $12.3 trillion that has flooded into the economy.
Eventually, this is going to end badly. But timing the market is an imperfect science particularly when many investors are enjoying the game.
Fortunately, there’s a way to safeguard your portfolio without abandoning equities. That has to do with investing in forever stocks.
Forever stocks aren’t magic beans. They don’t go up forever. But they are stocks that have stood the test of time. And investing in these stocks will keep your portfolio heading in the right direction.
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View the “7 Forever Stocks That Are Never Bad to Buy”.