Proceedings in the case on the reduction of State aid for biofuel producers have been terminated
The Constitutional Court has adopted a decision to terminate proceedings in the case No. 2009-42-0103 “On Compliance of the State Budget Subprogram 21.06.00 of the Law “On State Budget for 2009”with Article 1 and Article 105 of the Satversme (Constitution) of the Republic of Latvia and Compliance of Section 26 of the Cabinet of Ministers Regulations No. 280 of 15 April 2008 “Regulations Regarding Financial Assistance Quotas for Biofuel” with Article 1 and Article 105 of the Satversme of the Republic of Latvia”.
Article 1 of the Satversme (Constitution) provides that Latvia is an independent democratic republic, whilst Article 105 of the Satversme guarantees the right to own property.
The applicants, SIA “Mamas D” and SIA “Bio-Venta” held that the norms providing that the expenses of direct State assistance shall be proportionally reduced in the case if the amount thereof exceeds financial resources available in the State budget programme of the respective year are unconstitutional. Compliance of the respective subprogram of the State budget with the Satversme was also contested.
The Constitutional Court concluded that, in the case under review, the budget programme can only be assessed in conjunction with the contested norm of the Regulations of the Cabinet of Ministers. However, this norm was repealed in October 2009 and the Regulations now provide for another procedures regarding disbursement of unpaid part State aid.
Consequently, the Court concluded that proceedings in the case under review shall be terminated.
The Judgment of the Constitutional Court is final and not subject to appeal.
Linked case: 2009-42-0103