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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24. September 2024  |   State Aid Uncovered by Phedon Nicolaides

Calculation of the Funding Gap of an Infrastructure Project that May also Benefit from Future Public Funding
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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 […]
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25. September 2024  |   Guest State Aid Blog by Lexxion Publisher

The Cumulation of State Aid Granted by Different Member States — The Landwärme Case
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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 […]
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17. September 2024  |   State Aid Uncovered by Phedon Nicolaides

Although Member States Are Free to Determine their Tax Systems, they Must still Conform with State Aid Rules
State Aid Blogs - State Aid Uncovered photos 11
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 […]
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10. September 2024  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Switching to a New Broadcasting Frequency
State Aid Blogs - State Aid Uncovered photos 10
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. […]
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30. August 2024  |   State Aid Uncovered by Phedon Nicolaides

A State-Owned Company Acts as a Private Investor – Part II
State Aid Blogs - State Aid Uncovered photos 9
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 […]
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27. August 2024  |   State Aid Uncovered by Phedon Nicolaides

A State-Owned Company Acts as a Private Investor
State Aid Blogs - State Aid Uncovered photos 8
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 […]
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20. August 2024  |   State Aid Uncovered by Phedon Nicolaides

Incentive Effect of State Aid to a Large Investment Project
State Aid Blogs - State Aid Uncovered photos 7
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 […]
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13. August 2024  |   State Aid Uncovered by Phedon Nicolaides

A Large Investment Project that is Partly Funded Directly by the EU
State Aid Blogs - State Aid Uncovered photos 6
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 […]
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6. August 2024  |   State Aid Uncovered by Phedon Nicolaides

The Existence of State Aid Must Be Proven on the Basis of Credible Evidence
State Aid Blogs - State Aid Uncovered photos 5
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 […]
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30. July 2024  |   State Aid Uncovered by Phedon Nicolaides

State Aid Measures May not Infringe EU Law outside the Field of State Aid
State Aid Blogs - State Aid Uncovered photos 5
Introduction In December 2020, the Commission approved State aid scheme SA.59029 by which Italy compensated airlines for damage they had suffered as a result of covid-19-related restrictions, in the period from 1 March to 15 June 2020. Eligible airlines were only those that were licensed in Italy. The aid was approved on the basis of Article 107(2)(b) TFEU. In May […]
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17. September 2024  |   State Aid Uncovered by Phedon Nicolaides

Although Member States Are Free to Determine their Tax Systems, they Must still Conform with State Aid Rules
State Aid Blogs - State Aid Uncovered photos 11
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 […]
read more
No Comments
10. September 2024  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Switching to a New Broadcasting Frequency
State Aid Blogs - State Aid Uncovered photos 10
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. […]
read more
No Comments
30. August 2024  |   State Aid Uncovered by Phedon Nicolaides

A State-Owned Company Acts as a Private Investor – Part II
State Aid Blogs - State Aid Uncovered photos 9
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 […]
read more
No Comments
27. August 2024  |   State Aid Uncovered by Phedon Nicolaides

A State-Owned Company Acts as a Private Investor
State Aid Blogs - State Aid Uncovered photos 8
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 […]
read more
No Comments
20. August 2024  |   State Aid Uncovered by Phedon Nicolaides

Incentive Effect of State Aid to a Large Investment Project
State Aid Blogs - State Aid Uncovered photos 7
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 […]
read more
No Comments
13. August 2024  |   State Aid Uncovered by Phedon Nicolaides

A Large Investment Project that is Partly Funded Directly by the EU
State Aid Blogs - State Aid Uncovered photos 6
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 […]
read more
No Comments
6. August 2024  |   State Aid Uncovered by Phedon Nicolaides

The Existence of State Aid Must Be Proven on the Basis of Credible Evidence
State Aid Blogs - State Aid Uncovered photos 5
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 […]
read more
No Comments
30. July 2024  |   State Aid Uncovered by Phedon Nicolaides

State Aid Measures May not Infringe EU Law outside the Field of State Aid
State Aid Blogs - State Aid Uncovered photos 5
Introduction In December 2020, the Commission approved State aid scheme SA.59029 by which Italy compensated airlines for damage they had suffered as a result of covid-19-related restrictions, in the period from 1 March to 15 June 2020. Eligible airlines were only those that were licensed in Italy. The aid was approved on the basis of Article 107(2)(b) TFEU. In May […]
read more
No Comments
23. July 2024  |   State Aid Uncovered by Phedon Nicolaides

Electricity Produced from High-Efficiency Combined Heat & Power Plants
State Aid Blogs - State Aid Uncovered photos 4
News: The Commission has approved a draft block exemption regulation declaring certain categories of aid in the rail, inland waterways and multimodal transport sector compatible with the internal market on the basis of Article 93. The draft regulation can be accessed at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202404539 Introduction The EU’s Energy Efficiency Directive [EED] [Directive 2012/27, as last amended in 2023 by Directive 2023/1791] […]
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18. July 2024  |   State Aid Uncovered by Phedon Nicolaides

Compliance with EU State Aid Rules
State Aid Blogs - State Aid Uncovered photos 3 1
On 8 July 2024, the European Court of Auditors published its Overview of the Assurance Framework and the Key Factors Contributing to Errors in 2014-2020 Cohesion Spending, (Review 3, 2024) The main findings of the ECA concerning compliance with State aid rules can be summarised in the following two tables. 1) Most frequent errors [2018-22] (% of all errors) and […]
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15. December 2016  |   Guest State Aid Blog by Dimitrios Kyriazis

Ever wondered how Lexxion Seminars are like? Read this Summary of “State Aid in Tax Measures”
Lexxion Seminar
The following is a summary of the main points that were presented and the issues that were discussed in the seminar on State Aid in Tax Measures that was held by Lexxion in Brussels on 7-8 November 2016. The summary has been prepared for information purposes only and it is not meant to be a precise record of the proceedings […]
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19. October 2016  |   Guest State Aid Blog by Gherardo Carullo

Right of Access and State Aid Procedures: a Look at the General Presumption of Confidentiality and the Overriding Public Interest in Case C-271/15, Sea Handling v Commission
airplane flying
Today we are glad to welcome Dr. Gherardo Carullo, research fellow and Ph.D. in law at University of Milan, LL.M. (King’s College London), to our State Aid Blog. He specialises in public law, from a national and European perspective, and in particular in State intervention in the markets, both in his academic studies and in the legal profession. In this […]
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5. October 2016  |   Guest State Aid Blog by Erika Szyszczak

Article 263(4) TFEU: Third Party Challenges to State Aid Decisions
gavel
We are happy to welcome back Prof Erika Szyszczak on the State Aid Blog today. She is Professor of Law and Fellow of the UK Trade Policy Observatory at University of Sussex and practising barrister and ADR mediator at Littleton Chambers, Temple, London. Today she shares her views on two cases that shed new light on third party rights to […]
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14. September 2016  |   Guest State Aid Blog by Michał Bernat

Polish Green Certificates Held by the Commission to Be Compatible State Aid: a Curious Story Comes to an End
windmills
We are happy to welcome Dr Michał Bernat on the State Aid Blog today. He is a legal and tax adviser and State aid expert at the Dentons offices in Warsaw. Today he shares his insights on a decision in a case involving Polish green certificates issued to producers of energy from renewable energy sources. Read on to learn more. […]
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1. September 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – September 2016
gavel
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.   Wednesday 14/09/2016 Judgment in Case T-57/15 – Trajektna luka Split v Commission (General Court – Seventh Chamber)   […]
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18. August 2016  |   Guest State Aid Blog by Lexxion Publisher

New Video: How to notify State aid?
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What is State aid? Why do I need to be concerned about State aid? These and many more basic questions are answered in our videos on YouTube. Make sure to visit us!   Today one of our speakers and Attaché for State aid of the Hungarian central administration, Peter Staviczky explains how you notify State aid to the European Commission. Find out how to […]
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11. August 2016  |   Guest State Aid Blog by Lexxion Publisher

New Video: What is GBER and how to use it?
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What is State aid? Why do I need to be concerned about State aid? These and many more basic questions are answered in our videos on YouTube. Make sure to visit us!   Today Alexander Rose from the Government Legal Service of the UK explains what the GBER (=General Block Exemption Regulation) is and how to use it. Watch the video, comment and […]
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1. July 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – July 2016
gavel
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 14/07/2016 Judgment in Case T-143/12 – Germany v Commission (General Court – Eigth Chamber) Tuesday 19/07/2016 […]
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22. June 2016  |   Guest State Aid Blog by Gian Marco Galletti

Remarks on the Infrastructure Section of the Commission Notice on the Notion of State Aid
Cable-stayed bridge across river Po in Northern Italy
Today we are glad to welcome once again Gian Marco Galletti as guest author on our State aid blog. He is a PhD Candidate & EU Law Tutor at the Dickson Poon School of Law of King’s College London. In this blog post he comments on the Commission’s new Notice on the notion of State aid. Thank you for your […]
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9. June 2016  |   Guest State Aid Blog by Lexxion Publisher

State Aid Goes YouTube: Visit Phedon Nicolaides on our YouTube Channel
lexxion logo and eu flags
What is State aid? Why do I need to be concerned about State aid? What is General Block Exemption Regulation (GBER) and how to use it? These and many more basic questions will be answered in our videos on YouTube. Make sure to visit us!   With great pleasure we announce the beginning of a new era of e-learning about […]
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