State Aid Law Blog

State Aid Uncovered Blog

In Lexxion’s State Aid Uncovered blog, Prof. Phedon Nicolaides publishes weekly critical analyses of recent State aid judgments and decisions. Each post presents the key points of a court judgment or EU Commission decision, places it in the context of similar case law or practice, assesses the underlying reasoning and highlights any inconsistencies or contradictions.

Guest contributions from other State aid experts will also be published on the blog at irregular intervals to complement the content of the blog posts.

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Who is “Interested Party” that Can Challenge a Commission Decision and when Must the Commission Open the Formal Investigation Procedure

Introduction On 5 September 2024, the Court of Justice of the EU [CJEU] delivered two judgments on the two most frequent procedural issues on State aid: Who has standing to challenge a Commission decision and when the Commission is obliged to initiate the formal investigation procedure. These two issues are closely connected. Those whose interests are harmed by State aid […]

State Aid to the Operator of a Legal Monopoly

Introduction In some Member States, the provision of potable water to households is a “closed” sector. This means that public funding of the operations of the water provider does not constitute State aid. However, according to the case law of the Court of Justice, for a sector to be considered closed to trade and competition it is not sufficient that […]

Calculation of the Funding Gap of an Infrastructure Project that May also Benefit from Future Public Funding

Introduction The Commission recently approved State aid granted by Czech Republic for the construction of a multifunctional arena in Brno, with a capacity of 13300 visitors [see SA.58891]. The aid measure was unusual because it foresaw possible future public funding to cover certain financial costs in case the net operating revenue would not be enough. However, the Commission approved possible […]

The Cumulation of State Aid Granted by Different Member States — The Landwärme Case

Guest State Aid Blog by Professor Leigh Hancher, Nicole Robins and Dr Philipp Schliffke[1] 1 Introduction The Renewable Energy Directive 2018/2001 (‘RED II’) states that ‘the promotion of the production and use of biomethane, its injection into a natural gas grid and cross-border trade create a need to ensure proper accounting of renewable energy as well as avoiding double incentives […]

Although Member States Are Free to Determine their Tax Systems, they Must still Conform with State Aid Rules

Introduction On 10 September 2024, the Court of Justice [CJEU] delivered its much anticipated judgment, in case C-465/20 P, Commission v Ireland & Apple. It ruled that Ireland had granted incompatible State aid to Apple through preferential tax rulings.[1] The judgment was the result of an appeal by the Commission against the judgment of the General Court in case T-778/16, Ireland […]

Compensation for Switching to a New Broadcasting Frequency

Introduction Normally the cost of compliance with mandatory regulations may not be offset, partially or fully, by State aid because it lacks incentive effect. The beneficiaries would have to incur those costs anyway. However, even in the case of mandatory compliance, State aid may still have an incentive effect if the undertakings concerned would cease altogether the activity in question. […]

A State-Owned Company Acts as a Private Investor – Part II

Part II: Advantage The Commission, first, explained that the “(80) intervention must be considered as a whole, considering the purpose and timing of the various stages in which AMCO’s intervention is to be made, within the context and contents of the second arrangement proposal. Whether or not a transaction is in line with market conditions must be established through a […]

A State-Owned Company Acts as a Private Investor

Introduction When a party to a financial transaction is a company that is owned and controlled by the state, it is difficult to determine whether the transaction is free of State aid. This is because it is not easy to prove that the state had no influence over the decision of the company to carry out that transaction. The Commission […]

Incentive Effect of State Aid to a Large Investment Project

Introduction The Commission pays particular attention to the incentive effect of aid to large projects that are undertaken by international companies which, by definition, are mobile and can choose from many different locations where to establish their operations. Not only must the aid recipient prove, on the basis of credible evidence, that without the aid the investment would not be […]

A Large Investment Project that is Partly Funded Directly by the EU

Introduction In July 2024, the Commission published its decision on State aid measure SA.104269 concerning a large investment project [LIP] undertaken by 3Sun in Italy. 3Sun is a subsidiary of Enel, the Italian energy company that is also one of the largest energy companies in Europe. The project would take place in Catania, a city in the NUTS 2 region […]

Who is “Interested Party” that Can Challenge a Commission Decision and when Must the Commission Open the Formal Investigation Procedure

Introduction On 5 September 2024, the Court of Justice of the EU [CJEU] delivered two judgments on the two most frequent procedural issues on State aid: Who has standing to challenge a Commission decision and when the Commission is obliged to initiate the formal investigation procedure. These two issues are closely connected. Those whose interests are harmed by State aid […]

State Aid to the Operator of a Legal Monopoly

Introduction In some Member States, the provision of potable water to households is a “closed” sector. This means that public funding of the operations of the water provider does not constitute State aid. However, according to the case law of the Court of Justice, for a sector to be considered closed to trade and competition it is not sufficient that […]

Calculation of the Funding Gap of an Infrastructure Project that May also Benefit from Future Public Funding

Introduction The Commission recently approved State aid granted by Czech Republic for the construction of a multifunctional arena in Brno, with a capacity of 13300 visitors [see SA.58891]. The aid measure was unusual because it foresaw possible future public funding to cover certain financial costs in case the net operating revenue would not be enough. However, the Commission approved possible […]

Although Member States Are Free to Determine their Tax Systems, they Must still Conform with State Aid Rules

Introduction On 10 September 2024, the Court of Justice [CJEU] delivered its much anticipated judgment, in case C-465/20 P, Commission v Ireland & Apple. It ruled that Ireland had granted incompatible State aid to Apple through preferential tax rulings.[1] The judgment was the result of an appeal by the Commission against the judgment of the General Court in case T-778/16, Ireland […]

Compensation for Switching to a New Broadcasting Frequency

Introduction Normally the cost of compliance with mandatory regulations may not be offset, partially or fully, by State aid because it lacks incentive effect. The beneficiaries would have to incur those costs anyway. However, even in the case of mandatory compliance, State aid may still have an incentive effect if the undertakings concerned would cease altogether the activity in question. […]

A State-Owned Company Acts as a Private Investor – Part II

Part II: Advantage The Commission, first, explained that the “(80) intervention must be considered as a whole, considering the purpose and timing of the various stages in which AMCO’s intervention is to be made, within the context and contents of the second arrangement proposal. Whether or not a transaction is in line with market conditions must be established through a […]

A State-Owned Company Acts as a Private Investor

Introduction When a party to a financial transaction is a company that is owned and controlled by the state, it is difficult to determine whether the transaction is free of State aid. This is because it is not easy to prove that the state had no influence over the decision of the company to carry out that transaction. The Commission […]

Incentive Effect of State Aid to a Large Investment Project

Introduction The Commission pays particular attention to the incentive effect of aid to large projects that are undertaken by international companies which, by definition, are mobile and can choose from many different locations where to establish their operations. Not only must the aid recipient prove, on the basis of credible evidence, that without the aid the investment would not be […]

A Large Investment Project that is Partly Funded Directly by the EU

Introduction In July 2024, the Commission published its decision on State aid measure SA.104269 concerning a large investment project [LIP] undertaken by 3Sun in Italy. 3Sun is a subsidiary of Enel, the Italian energy company that is also one of the largest energy companies in Europe. The project would take place in Catania, a city in the NUTS 2 region […]

The Existence of State Aid Must Be Proven on the Basis of Credible Evidence

Introduction This article reviews two cases in which courts found that it had not been proven that all of the criteria of Article 107(1) TFEU had been satisfied. Case I: Not being able to prove that the measure is attributed to a decision of the state With decision 2024/2033, published in OJ L, 29 July 2024, the Commission corrected its […]

15th Jubilee Feature – State Aid Experts Paying Court to EStAL: Mihalis Kekelekis

Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]

15th Jubilee Feature – State Aid Experts Paying Court to EStAL: Birgit Haslinger

Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]

15th Jubilee Feature – State Aid Experts Paying Court to EStAL: Ilkka Aalto-Setälä

Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]

15th Jubilee Feature – State Aid Experts Paying Court to EStAL: Sara Gobbato

Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]

State Resources criteria in the spotlight once again: Comments on the Opinion of the Advocate General in case C-329/15 ENEA SA w Poznaniu v Prezes Urzędu Regulacji Energetyki

Today we are glad to welcome Nevin Alija to the State Aid Blog. She is a PhD Candidate at the Católica Research Center for the Future of Law of the Católica Global School of Law, Universidade Católica Portuguesa. In this blog post she examines case C-329/15 ENEA SA w Poznaniu v Prezes Urzędu Regulacji Energetyki. Thank you, Nevin, for sharing […]

15th Jubilee Feature – State Aid Experts Paying Court to EStAL: Thomas Jaeger

Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]

Court’s Diary – May 2017

Find below the court’s diary for all State aid cases this month. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog.   Thursday 18/05/2017 Judgment in case C-150/16 – Fondul Proprietatea vs Complexul Energetic Oltenia SA (Court of Justice – Fifth Chamber) […]

Court’s Diary – April 2017

Find below the court’s diary for all State aid cases this month. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog.   Thursday 06/04/2017 Order in case T-101/16 – Klausner Holz Niedersachsen GmbH v European Commission (General Court – Second […]

State Aid is on the Agenda: Deal or No Deal

With great pleasure we welcome again Professor Erika Szyszczak to our blog. Erika is a Research Professor in Law and a Fellow of the UK Trade Policy Observatory. She is currently the Special Adviser to the House of Lords Internal Market Sub-Committee in respect of its inquiry into Brexit: competition. She is the author of The Regulation of the State […]

Top 3 State Aid Blog Posts from 2016

From remarks on the Commission Notice on the Notion of State aid over to the right of access and State aid procedures, our guest bloggers on the StateAidHub have shed light on various controversial State aid judgments and developments. View now the most popular posts of 2016.   With the end of 2016, we thank not only Prof Phedon Nicolaides […]

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