Fiat has not received any illegal state aid from the Luxembourg authorities. Advocate General Priit Pikamäe asks the Court of Justice of the EU to dismiss the accusations made by Brussels against the car manufacturer, and to recognize the reasons on appeal. According to the European Commission, the advanced tax agreements at subsidized rates (also known as tax rulings) negotiated in 2012 between the Grand Duchy and Fiat Chrysler Finance Europe would have produced illicit advantages for the company, which was believed to have operated with unfair and harmful to competition conduct. Fiat and Luxembourg have begun their legal defense, which could bear fruit.
In 2019, the General Court of the EU agreed with the European Commission, and today it is asked to overturn the sentence. According to the Advocate General, the General Court has violated the provisions governing the division of competences between the Union and its Member States, and which provide for a ban on harmonization in tax matters. Basically, different taxation regimes are possible.
In summary, the Court is proposed to annul the judgment of the Court of 2019 which declares the aid implemented by Luxembourg in favor of Fiat incompatible with the internal market. However, this request is accompanied by that of rejecting the appeal that was filed separately by Fiat Chrysler. Because the Advocate General supports the appeal of Luxembourg and Fiat, but not the separate one presented only by the car brand. In the case of Fiat Chrysler Finance Europe v Commission, Pikamäe himself proposes that the Court dismiss the appeal entirely.