EU General Court Upholds Italian COVID State Aid Against Ryanair Challenge

The EU General Court dismissed Ryanair’s appeals on 8 July 2026, confirming Italy’s €230 million COVID-19 aid scheme complies with EU law despite its Italian licence requirement [1][4]. Judges ruled the eligibility condition targets undertakings most severely affected by restrictions on connections to or from Italy, permitting the difference in treatment under Article 107(2)(b) TFEU without breaching non-discrimination principles [4]. The court found Ryanair failed to demonstrate that the licence requirement produced restrictive effects beyond those inherent in state aid or discouraged its activities in Italy [4]. This judgment reaffirms the Commission’s 2020 decision after re-evaluation, closing a major legal challenge in Ryanair’s broader campaign against pandemic-era national subsidies [2][14]. Ryanair retains a two-month window to appeal to the EU Court of Justice [3].