BRUSSELS, June 25 (Reuters) - The European Commission said on Thursday it had referred Italy to Europe's highest court for failing to respect a ruling that the country must recover illegal state aid. The Commission, which regulates competition in the 27-nation European Union, said in a statement that Italy had failed to implement a 2004 ruling by the Court of Justice which confirmed an earlier decision by the EU's executive arm.
The Commission said that although over five years had elapsed since the judgment, Italy had recovered only a small part of the overall aid, estimated at 281 million euros ($395 million).
"The Commission will take all necessary legal steps to ensure that member states comply with their obligations to recover illegal and incompatible state aid," EU Competition Commissioner Neelie Kroes said in the statement. (Reporting by Bate Felix, editing by Dale Hudson)