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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4. July 2017  |   State Aid Uncovered by Phedon Nicolaides

Imputability to the State
State Aid Blogs - m 11
State resources and imputability or attribution to the state are two distinct concepts. They must both be satisfied in order for a measure to constitute State aid. Introduction Several Member States have set up “promotional” banks or national development banks. Some of these promotional banks pursue only public policy objectives by channelling cheap funds to SMEs. Some others provide funding […]
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27. June 2017  |   State Aid Uncovered by Phedon Nicolaides

Is there any Advantage for Owners, Operators or Users of Publicly Funded Ports?
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Public funding of ports confers an advantage to their owners, but not for operators chosen competitively or users who pay a market price.   Introduction Few issues have exercised public authorities more than the funding of infrastructure which is used for commercial purposes. This is because State aid may benefit the owner and/or the operator and/or the users of the […]
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22. June 2017  |   Guest State Aid Blog by Lexxion Publisher

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 […]
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20. June 2017  |   State Aid Uncovered by Phedon Nicolaides

The Effectiveness of Clear Guidance: The Case of Broadband Networks
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This blog examines how much aid goes to support broadband networks and what lessons can be drawn from the Commission’s decisional practice.   Introduction A principal objective of the State Aid Modernisation was to free Commission resources from the time-consuming task of checking the conformity of routine measures of State aid. Consequently, the General Block Exemption Regulation was extended to […]
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14. June 2017  |   Guest State Aid Blog by Nevin Alija

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
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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 […]
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13. June 2017  |   State Aid Uncovered by Phedon Nicolaides

A Regional Aid Scheme with an Ex-Post Evaluation Plan
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Aid must be capable of remedying the regional handicap.   Introduction A novel aspect of the 2014 State Aid Modernisation was the requirement for ex-post evaluation of large or unusual State aid measures. The purpose of the ex-post evaluation is to determine the effectiveness of State aid. The outcome of the evaluation does not affect the legality of the aid. […]
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6. June 2017  |   State Aid Uncovered by Phedon Nicolaides

Transfer of State Assets between State-Owned Companies
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Transfers of public assets for the purpose of extinguishing debt have to be valued according to private creditor principle. Transfers of public assets that involve State aid must be notified to the Commission.   Introduction Sale or transfer of state assets is a tricky process. A possible undervaluation of the assets results in State aid for the benefit of the […]
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30. May 2017  |   Guest State Aid Blog by Lexxion Publisher

15th Jubilee Feature – State Aid Experts Paying Court to EStAL: Thomas Jaeger
State Aid Blogs - Rose StateAidHub ohne Rand 24082017
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 […]
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29. May 2017  |   State Aid Uncovered by Phedon Nicolaides

The Art, Science and Law of Funding Services of General Economic Interest
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The compulsory nature of an assigned public mission makes the services covered by the mission different from those provided by market operators for profit.   Introduction The justification of government intervention for the purpose of ensuring delivery of adequate services of general economic interest [SGEI] and the design of measures that compensate providers of SGEI can be very tricky. This […]
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23. May 2017  |   State Aid Uncovered by Phedon Nicolaides

What Costs Are Charged by Public Authorities when they Act as Market Operators?
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Fees charged by operators to users of infrastructure must cover all relevant costs. The relevant costs are those which are causally linked to the agreements between users and operators. Introduction The rules in the Treaty on the Functioning of the European Union are neutral in their treatment of private or state-owned companies [Article 345 TFEU]. This means that companies cannot […]
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15. November 2016  |   State Aid Uncovered by Phedon Nicolaides

Private Investor v Private Creditor
State Aid Blogs - 01.11.17 State aid
When the state, acting as a private investor, seeks to recover past public investments, it must aim to maximise the recoverable amount. However, public funds that were granted as State aid must be ignored when the recoverable amount of past investments is calculated.   Introduction On 15 September 2016, the General Court rendered its judgment in case T‑386/14, FIH Holding v […]
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8. November 2016  |   State Aid Uncovered by Phedon Nicolaides

1) Selectivity of Health Tests 2) Existing v New Aid in Preferential Electricity Tariffs
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A measure can be selective even if it applies to a whole sector. An existing aid measure becomes new when a court extends it temporarily.   Introduction This article reviews two judgments: one on BSE tests in Belgium and another on preferential electricity tariffs in Greece. The issue at hand with respect to the BSE test was whether a measure […]
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1. November 2016  |   State Aid Uncovered by Phedon Nicolaides

Turnover Taxes Can be Incompatible with the Internal Market
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Progressive taxes levied on turnover can provide State aid that is incompatible with the internal market. Flat turnover taxes are proportional and therefore likely to be free of State aid.   Introduction Hungary wanted to levy two types of turnover taxes whose purpose was to protect health. The first tax was levied on tobacco products.[1] The Commission found, in decision 2016/1846, […]
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25. October 2016  |   State Aid Uncovered by Phedon Nicolaides

Belgium’s Alternative Tax Regime for the Diamond Sector
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Alternative tax regimes do not provide State aid as long as they raise the amount of tax paid and they are justified by the nature or general scheme of the normal system of taxation.   Introduction During the past three years, the Commission has been pursuing multinational companies that pay too little tax. Its main objection to the tax treatment […]
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18. October 2016  |   State Aid Uncovered by Phedon Nicolaides

Compliance with State Aid Rules in Cohesion Policy: A Special Report of the European Court of Auditors
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Control of State aid by national authorities needs to be strengthened. Typical mistake is to grant aid after a project has started or to subsidise ineligible costs. Aid measures for risk capital, SGEI and R&D appear to be particularly prone to error.    Introduction   On 4 October 2016, the European Court of Auditors [ECA] published a special report 24/2016 […]
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11. October 2016  |   State Aid Uncovered by Phedon Nicolaides

Non-economic Activities, Absolute Impossibility to Recover Incompatible Aid and the Powers of National Courts
State Aid Blogs - SAH blog48 Montessori Lexxion
This article reviews three judgments that were all rendered on 15 September 2016. The first two concern the concept of economic activity. The third is about the rights of national courts to consider the correctness of Commission decisions. The Court of Justice has said clearly that national courts may not question Commission decisions.   Economic activity The first two cases […]
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6. October 2016  |   State Aid Uncovered by Phedon Nicolaides

Compensation for the Extra Costs Imposed by Law
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When the state imposes obligations which create extra costs for a single undertaking, that undertaking suffers a disadvantage in relation to its competitors. The extra costs are abnormal because normal costs are those borne by all competitors. Introduction On 14 July 2016, the General Court rendered its judgment in case T 143/12, Germany v Commission.1 The outcome was a victory for […]
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27. September 2016  |   State Aid Uncovered by Phedon Nicolaides

Regional Aid for a Large Project subject to Individual Notification under the GBER
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In the meaning of regional aid rules, diversification in a “new activity” is not the same as diversification in a “new product”. A “new process innovation” must be different, in the sense of being distinct from an existing process, must be substantial, in the sense that it covers the whole production process and must be new, in the sense that […]
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20. September 2016  |   State Aid Uncovered by Phedon Nicolaides

Non-State Aid Assistance to Depositors and Customers of Banks
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Public assistance to borrowers who cannot repay their loans does not constitute State aid if the beneficiaries are individuals. Public assistance to undertakings which cannot repay their loans does not constitute State aid if the amount of aid does not exceed the de minimis threshold. Any public funding of deposits which are transferred from ailing to healthy banks is not […]
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13. September 2016  |   State Aid Uncovered by Phedon Nicolaides

Burden-Sharing and State Aid to Banks
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Creditors must contribute to the recovery of banks before State aid is granted. Burden-sharing by creditors in the recovery of banks does not deprive them of their right to property.   Introduction On 19 July 2016, the Court of Justice rendered its judgment in case C‑526/14, Tadej Kotnik and others v Državni zbor Republike Slovenije.[1] The judgment was in response to a […]
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