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.

Subscribe now!

8. May 2018  |   State Aid Uncovered by Phedon Nicolaides

Dealing with Problematic Banks
State Aid Blogs - StateAidHub blogpost14 StateAid Lexxion Money Eu Commission Bank Financial
The sale of a bank through a fair, open, competitive and transparent procedure that maximises the value of the assets and liabilities is free of State aid.   Introduction This week’s article returns to the theme of State aid to banks and examines a case of “precautionary” recapitalisation and a case of sale of a bank, that was linked to […]
read more
No Comments
2. May 2018  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Public Service Obligations
State Aid Blogs - 02.05.2018 SA POL UK SGEI
Compensation for public service obligations may be fixed at less than the net extra costs of the provider of the public service to induce it to become more efficient.   Introduction   Every three years the UK determines the compensation it provides to the Post Office Limited (POL) for the extra costs of the public services it provides. Commission decision […]
read more
No Comments
24. April 2018  |   State Aid Uncovered by Phedon Nicolaides

Liquidity Support to Banks
State Aid Blogs - 24.04.2018 StateAid Banks MPS
Banks that receive State aid are considered to be failing banks, except when the aid is granted to solvent banks for the purpose of precautionary recapitalisation or temporary liquidity.   Introduction   During the past decade, large amounts of public funds have been committed to shore up failing or illiquid banks. Under current banking rules, the mere fact that a […]
read more
2 Comments
17. April 2018  |   State Aid Uncovered by Phedon Nicolaides

Complaints about Billboards and Welfare Services
State Aid Blogs - 17.04.2018 State aid Billboard
A regulatory measure may affect competition but it does not constitute State aid. Administrative changes to existing aid measures do not result in new State aid.   Introduction This article reviews two Commission decisions: one concerning a Czech regulatory measure and another concerning existing aid to German social organisations. Both decisions dealt with complaints about alleged illegal State aid.   […]
read more
No Comments
10. April 2018  |   State Aid Uncovered by Phedon Nicolaides

What Makes a Public Health Care System Non-economic?
State Aid Blogs - 10.04.18 HealthCare StateAid Economic
Health services are not economic in nature when they are funded by the state through taxation, they are provided for free or at a nominal fee which is the same for all patients and they are available to all citizens on a universal basis and on the same terms.   Introduction   After the judgment of the General Court of […]
read more
2 Comments
3. April 2018  |   State Aid Uncovered by Phedon Nicolaides

Advantage through Contracts
State Aid Blogs - ah life rd2jRzEum9g unsplash
A price below the regulated normal price confers an advantage. Competition is distorted even when the aid recipient does not expand its operations.   Introduction An undertaking can obtain an advantage without receiving an outright grant. The advantage may be hidden in a contract for the supply of an essential input at reduced prices. This is the issue tackled by […]
read more
4 Comments
27. March 2018  |   State Aid Uncovered by Phedon Nicolaides

Correct Pricing for the Use of Publicly Funded Infrastructure
State Aid Blogs - m 6
Publicly funded infrastructure must be made available to users at prices that correspond to its market value.   Introduction   When publicly-funded infrastructure is placed at the disposal of an undertaking, that undertaking must pay a market price, otherwise it derives an advantage in the meaning of Article 107(1) TFEU. But what is the market price? Is it the price […]
read more
1 Comment
20. March 2018  |   State Aid Uncovered by Phedon Nicolaides

Private Creditor v Private Investor
State Aid Blogs - m 4
A private investor never agrees to an unprofitable transaction while a private creditor may agree to a loss in order to avoid a bigger loss from non-recovery of debt owed to it. A public authority acting as a private operator must disregard any losses it may incur from State aid it granted in the past.   Introduction   A question […]
read more
1 Comment
13. March 2018  |   State Aid Uncovered by Phedon Nicolaides

What Is and What Is not Export Aid
State Aid Blogs - 13.03. Trade StateAid deminimis
The prohibition of export aid prevents distortions in the internal market. Therefore, it cannot be considered as restricting intra-EU trade. Aid is classified as export aid only if it has a direct impact on exports. The incidental and indirect effect on exports of investment aid is not sufficient to categorise it as export aid.   Introduction On 28 February 2018, […]
read more
No Comments
6. March 2018  |   State Aid Uncovered by Phedon Nicolaides

State Aid for R&D
State Aid Blogs - m 5
A large amount of State aid can still be compatible with the internal market if it meets all of the requirements of the RDI Framework.   Introduction   Since the coming into force of the GBER, only very few cases of R&D have been notified to the Commission. This means that it is not so obvious how the State aid […]
read more
No Comments
« Previous PageNext Page »

17. October 2017  |   State Aid Uncovered by Phedon Nicolaides

State Resources and Imputability
State Aid Blogs - 17.10. imputability stateaid
When the state acts in its capacity as legislator it is not presumed to direct the resources of undertakings it owns and over which it can exercise dominant influence as a shareholder. Introduction On 13 September 2017, the Court of Justice replied to a request from a national court to advise it on the concept of state resources [case C‑329/15, […]
read more
2 Comments
10. October 2017  |   State Aid Uncovered by Phedon Nicolaides

Pitfalls in the Use of De Minimis Aid
State Aid Blogs - 05.12.Imputability of Aid State aidz
Calculating de minimis aid according to the average amount of aid received by undertakings is wrong. Introduction It appears that all Member States grant de minimis aid, even though some tend to grant it more easily than others. De minimis aid can be used to subsidise any costs, including those which are not eligible under other State aid rules. The […]
read more
3 Comments
4. October 2017  |   State Aid Uncovered by Phedon Nicolaides

The Necessity and Proportionality of Regional Aid
State Aid Blogs - m 5 1
The Commission must open the formal investigation procedure when it has serious doubts about the compatibility of State aid. The aid that is necessary to induce a company to locate its investment in an assisted region is the amount that covers the difference in costs between the assisted region and the best alternative location. This amount is also proportional.   […]
read more
No Comments
26. September 2017  |   State Aid Uncovered by Phedon Nicolaides

Odysseus and the Sirens: A Rational Market Operator Can Agree to be Bound by the Ruling of an Arbitration Tribunal
State Aid Blogs - m 6 1
A rational market operator can agree to arbitration if there is no reasonable prospect of a better outcome. However, a rational operator would ensure that the terms according to which an arbitration decision can be taken would be defined in advance and would not be prejudicial to the operator.   Introduction Is it rational for a market operator to agree […]
read more
No Comments
19. September 2017  |   State Aid Uncovered by Phedon Nicolaides

Calculating the Amount of State Aid in a 100% Public Guarantee
State Aid Blogs - CCH tate aid infratructure
The proxy rates in the Commission Notice on Guarantees cannot be used in cases of state guarantees that cover 100% of the underlying loans.   Introduction Last week’s article reviewed the terms of the operation of regional airports in Greece. (View it here). This week’s article continues with the theme of management of public infrastructure and examines Commission decision SA.42545 on […]
read more
No Comments
12. September 2017  |   State Aid Uncovered by Phedon Nicolaides

Concession Agreements Free of State Aid
State Aid Blogs - concessions State aid airports
Awards of concession contracts should follow a procedure which is open, transparent, non-discriminatory and unconditional. Prices may be regulated to prevent excessive prices and profits. But, the concession fee may be adjusted to enable the concessionaire to earn a sufficient return.   Introduction This article examines the link between State aid and concession agreements. In decision SA.44259, the Commission considered […]
read more
No Comments
5. September 2017  |   State Aid Uncovered by Phedon Nicolaides

Sale, Liquidation and Other Options for Private Investors
State Aid Blogs - m 33
A private investor chooses the less costly option between selling a company at a loss and liquidating it. In addition to avoiding losses, a private investor also cares for its image, quantifies its value and factors it in the sale or liquidation option.   Introduction On 6 July 2017, the General Court ruled in two closely related cases: T-74/14, France […]
read more
No Comments
29. August 2017  |   State Aid Uncovered by Phedon Nicolaides

Bank Recapitalisation that Conforms to the Market Economy Investor Principle
State Aid Blogs - m 7
A public authority acts like a private investor when it injects capital in a stricken bank if there is a realistic prospect of sufficient return that compensates it for the risk it bears.   Introduction Caixa Geral de Depósitos (CGD) is the largest bank in Portugal and is now fully owned by the State. In June 2012, Portugal notified to […]
read more
No Comments
22. August 2017  |   State Aid Uncovered by Phedon Nicolaides

State Aid Is Not Compatible With the Internal Market when it Contravenes other EU Rules
State Aid Blogs - m 4 1
Relief from a penalty imposed by EU rules is State aid that is incompatible with the internal market.   Introduction EU rules contain a standard exclusion: State aid cannot be declared compatible with the internal market when it is non-severable [i.e. cannot be separated] from a violation of EU law. Yet, cases involving non-severable violations of EU law are rare. […]
read more
No Comments
15. August 2017  |   State Aid Uncovered by Phedon Nicolaides

Exceptions to the Exceptional Nature of State Aid for Banks
State Aid Blogs - m 4
State aid for banks can be granted without triggering resolution in cases of precautionary recapitalisation and liquidation.   Introduction A primary objective of the European response to the financial crisis was to sever the link between troubled banks and indebted sovereign. The principle now is that if a bank needs money to meet the capital adequacy ratio required by banking […]
read more
No Comments
« Previous PageNext Page »

Subscribe to our newsletter for updates on legal developments, upcoming conferences, workshops, and publications in your areas of interest.

Newsletter: Subscribe now