2. Interest shall be calculated for the period elapsing between the notification to the beneficiary of the repayment obligation and the effective repayment or deduction of the amount to be repaid.

The four conditions are: (a) the beneficiary of a State funding mechanism for an SGEI must be formally entrusted with the provision and discharge of an SGEI, the obligations of which must be clearly defined; (b) the parameters for calculating the compensation must be established beforehand in an objective and transparent manner, to avoid it conferring an economic advantage which may favour the recipient undertaking over competing undertakings; (c) the compensation cannot exceed what is necessary to cover all or part of the costs incurred in the discharg ...[+++]e of the SGEI, taking into account the relevant receipts and a reasonable profit for discharging those obligations; and (d) where the beneficiary is not chosen pursuant to a public procurement procedure, the level of compensation granted must be determined on the basis of an analysis of the costs which a typical undertaking, well run, would have incurred in discharging those obligations, taking into account the relevant receipts and a reasonable profit.

Where a Member State, after having refused prior authorisation, is required to reimburse an individual for treatment which they received abroad, the Advocate General states that this must be at the level which would have been reimbursed had the treatment being carried out in the home Member State.

The lack of documents to evidence expenses claimed by way of assistants’ salaries or any other expenditure repayable in accordance with the Rules Governing the Payment of Expenses and Allowances can have no other consequence than the obligation to repay the amounts in question to the Parliament.

Taxable persons who receive such reimbursement (from, say, an insurance company) are therefore obliged to repay the VAT relating to the goods reimbursed.

- State aid No 125/94 - Special administration of firms made insolvent through having to reimburse aid ruled incompatible with the common market - Italy The Commission has decided to initiate proceedings under Article 93(2) of the EC Treaty in respect of Italian Law No 80/1993, which provides for firms made insolvent, through having to reimburse aid ruled incompatible with the common market by the Commission or the Court of Justice, to be placed under special administration, with bankruptcy proceedings against them being suspended and their debts guaranteed by the State.