Greece should be fined for failing to recover state aid illegally granted to Olympic Airways, but the penalty should be lower than suggested by the European Commission, an adviser to the bloc's top court said.

The case relates to some EUR41 million euros (USD$53.4 million) injected into Olympic Airways as part of its unsuccessful restructuring and a yet uncounted sum of unpaid taxes, fees and social security contribution.

The advocate-general's opinion, due to be followed by a final ruling from the European Court of Justice in several months, is only one chapter in a long dispute between Greece and the European Union's executive arm.

Advocate-General Paolo Mengozzi recommended that Greece pay a EUR2 million lump sum for not complying with a 2005 court decision that the aid was illegal, and EUR15,768 for each day of a delay in complying with the final ruling.

The Commission has sought a daily fine of more than EUR50,000.

The court often, but not always, follows opinions of its advocates-general.

Last year, the Commission and Greece struck a deal over a break-up and privatization of Olympic Airlines, the successor of Olympic Airways.

The Commission said in September said Greece should recover EUR850 million from Olympic Airlines in illegal state aid it received between 2005-2007.

But only a small portion is expected to be repaid since the debt-laden Olympic Airlines will become an empty shell company after it sells off its assets.