The European Union (EU) on Wednesday took France to the EU's highest court for failing to recover tax breaks given to the buyers of ailing companies.

The European Commission, the EU's executive arm, said on Wednesday that it has decided to institute proceedings against France in the European Court of Justice as Paris had failed to comply with a 2003 decision by the commission, which ruled French tax exemption for takeovers of ailing companies illegal under EU laws.

The order for companies to pay the tax was aimed at restoring fair competition and strip them of unfair advantage over rivals.

Almost three years later, France has yet to take measures to recover the aid as required by the decision, the commission said.

"More than three years after the decision ... no practical action has been taken to recover aid from recipients," it said.

EU Competition Commissioner Neelie Kroes said on Wednesday that the commission will "deal very strictly with member states that fail to implement its state aid decisions."

If the European Court of Justice backs EU regulators, France may face fines for failure to obey the commission's order.

Source: Xinhua