Austria Supreme Court orders COVID‑19 aid repayments to firms

The Austrian Supreme Court (OGH) ruled that state COVID‑19 subsidies violated EU state‑aid rules because the EU caps apply per corporate group rather than per subsidiary. Consequently, firms that received aid on a subsidiary basis must repay the amounts deemed unlawful.

In the leading case involving a restaurant‑chain operator, the court identified an overpayment of about €1.42 million, which was offset against pending aid. Lawyers warn that a wave of repayment claims could push many companies into insolvency, while the finance ministry expects to recover several million euros. A possible mitigation route is the EU’s “reallocation directive,” which would allow firms to re‑characterise received funds as loss or damage compensation. The decision highlights broader concerns about how Austria allocated billions of euros in pandemic support.

The ruling may affect numerous Austrian enterprises that obtained pandemic assistance through individual subsidiaries, prompting a reassessment of past aid applications and future compliance with EU state‑aid limits.