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, […]
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.
State Aid Uncovered ×
10. October 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
4. October 2017 |
State Aid Uncovered
by Phedon Nicolaides
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. […]
26. September 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
19. September 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
12. September 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
5. September 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
29. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
22. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
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. […]
15. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
State Aid Uncovered ×
17. October 2017 |
State Aid Uncovered
by Phedon Nicolaides
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, […]
10. October 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
4. October 2017 |
State Aid Uncovered
by Phedon Nicolaides
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. […]
26. September 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
19. September 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
12. September 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
5. September 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
29. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
22. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
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. […]
15. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
State Aid Uncovered ×
17. October 2017 |
State Aid Uncovered
by Phedon Nicolaides
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, […]
10. October 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
4. October 2017 |
State Aid Uncovered
by Phedon Nicolaides
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. […]
26. September 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
19. September 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
12. September 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
5. September 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
29. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
22. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
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. […]
15. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]