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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18. July 2016  |   State Aid Uncovered by Phedon Nicolaides

State Aid to Electricity Intensive Users
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The risk of relocation outside the EU is not accepted as a justification for the granting of State aid.   Introduction The European Commission has had to assess many measures of State aid to producers of electricity from renewable energy sources [RES producers or “green” electricity producers] and to intensive users of electricity [EIUs]. The former have benefitted from investment […]
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14. July 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: When Is State Aid Allowed and What Is „Good 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 will be answered in our videos on YouTube. Make sure to visit us!   Last week Phedon Nicolaides gave „Practical Examples of State aid“, today he addresses the question „What type of aid is allowed?“. This aid is called „good aid“. […]
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12. July 2016  |   State Aid Uncovered by Phedon Nicolaides

State Aid Modernisation: First Results
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There has been an impressive increase in the use of the General Block Exemption Regulation. However, Member States still notify measures which are acknowledged by the Commission with “comfort letters”.   Introduction[1] In May 2012, the European Commission launched its State Aid Modernisation [SAM] initiative. After two years of consultations with the Member States, a set of new State aid […]
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7. July 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: Practical Examples of 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 will be answered in our videos on YouTube. Make sure to visit us!   After answering the question “Who can grant State aid?” last week, Phedon Nicolaides today gives you some practical examples of State aid such as subsidies by public authorities, […]
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5. July 2016  |   State Aid Uncovered by Phedon Nicolaides

PART II: Combining Infrastructure Aid with SGEI Aid
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After the spontaneous words on Brexit and State aid last week, I continue with the 2nd part of the post on infrastructure and SGEI today. A provider of services of general economic interest may receive both investment aid and compensation for the extra costs of public service obligations.   Part II: SGEI[1] Member States are free to determine the services […]
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1. July 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – July 2016
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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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30. June 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: Who Can Grant 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 will be answered in our videos on YouTube. Make sure to visit us!   After answering the question “What is State aid?” in his last video, Phedon Nicolaides today speaks about “Who can grant State aid?”. Watch the video, comment and subscribe to […]
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27. June 2016  |   State Aid Uncovered by Phedon Nicolaides

Brexit and State Aid: The Day After
State Aid Blogs - StateAid Blogpost Brexit EU Lexxion
The second part of the Lithuanian measure on the LNG terminal was scheduled to be published this week. In view of the referendum in favour of exit of the UK from the EU, the second part of the Lithuanian measure will be published next week. Instead, this week the focus is on the impact of Brexit on State aid. Introduction […]
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23. June 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: What is 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 will be answered in our videos on YouTube. Make sure to visit us!   Today Phedon Nicolaides answers the question “What is State aid?”, explaining the four criteria by case law & treaty. View now, comment and subscribe to our […]
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21. June 2016  |   State Aid Uncovered by Phedon Nicolaides

PART I: Combining Infrastructure Aid with SGEI Aid
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A provider of services of general economic interest may receive both investment aid and compensation for the extra costs of public service obligations.   Introduction Governments normally support large infrastructural projects through guarantees. This is because such projects have a long life, the initial investment costs are very high and the recoupment of investment takes place over a long period […]
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15. September 2015  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Public Service Obligations and Compensation for Damage
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Compensation for public service obligations is compatible with the internal market when, at minimum, a PSO is well defined in an entrustment constituting an official act of a public authority, the revenues and costs of the PSO are clearly identified and separated from other commercial activities and the compensation does not exceed the net extra costs of the PSO. Compensation […]
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8. September 2015  |   State Aid Uncovered by Phedon Nicolaides

Services of General Economic Interest: How to Compensate and Induce more Efficiency
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Even traditional monopolists, like postal operators, have to comply with the rules on compensation for the extra costs of public service obligations. SGEI providers can be compensated in a way that induces them to become more efficient.   Introduction This article examines case Commission decision SA.38788 concerning compensation for the UK Post Office Ltd [POL] in the period 2015-18.[1] It is […]
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2. September 2015  |   State Aid Uncovered by Phedon Nicolaides

When Do Public Pronouncements Confer an Advantage to Undertakings?
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Public pronouncements can confer an advantage if they are sufficiently precise and clearly commit a public authority to support an undertaking.   Introduction[1] Politicians often claim that they would never allow important national companies to go bust. Occasionally, such claims appear to sway market sentiment in favour of those companies. Private investors are heartened by the avowed support of the […]
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25. August 2015  |   State Aid Uncovered by Phedon Nicolaides

The Challenge of Calculating a Market Price
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The market price of land or buildings can be determined via auction, expert valuation or other appropriate methods.   Introduction On 16 July 2015, the Court of Justice delivered its judgment in case C‑39/14, BVVG Bodenverwertungs- und -verwaltungs GmbH [BVVG] v Landkreis Jerichower Land in Germany.[1] The judgment was in response to a request for a preliminary ruling concerning a dispute […]
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18. August 2015  |   State Aid Uncovered by Phedon Nicolaides

Why Do some Member States Offer so much Fiscal Aid?
State Aid Blogs - StateaidHub blogpost11 Lexxion 2019 Tax Commission EU judgement
Member States differ significantly in their propensity to grant fiscal aid.   Introduction Interest in fiscal aid has been rekindled recently by two unrelated events. First, the Commission opened a number of investigations on the alleged special tax treatment accorded to multinational companies such as Apple and Starbucks. These investigations are believed to be almost completed and the Commission is […]
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11. August 2015  |   State Aid Uncovered by Phedon Nicolaides

Ex post Evaluation of State Aid Measures
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Ex post evaluation is not just a “pillar” of State Aid Modernisation. It is also an indispensable tool for understanding the impact and effectiveness of State aid. State aid modernisation and decentralisation   One of the pillars of the Commission’s State Aid Modernisation initiative is the decentralisation of responsibility for the implementation of State aid measures. The decentralisation works by […]
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4. August 2015  |   State Aid Uncovered by Phedon Nicolaides

The Use and Abuse of De Minimis Aid & State Resources
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Individual awards of de minimis aid must remain below the relevant threshold as well as the sum of all individual awards in any three-year period. Aid measures which are funded by beneficiaries themselves are unlikely to constitute State aid.   Introduction This article reviews two cases that, among other things, deal with the use and abuse of de minimis aid […]
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28. July 2015  |   State Aid Uncovered by Phedon Nicolaides

The Market Economy Investor Principle Applies also to Avoidance of Losses
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A public authority can act as a private investor in paying to avoid costly contractual clauses. A public authority can act as a private investor in paying to bring forward future revenue. Introduction   When a market operator invests to make profit, its underlying logic is the same as when it pays to avoid losses. In both cases it is […]
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21. July 2015  |   State Aid Uncovered by Phedon Nicolaides

Application of the MEIP to Transactions between Parent and Subsidiary Companies
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The Market Economy Investor Principle also applies to transactions between related companies. A private investor enjoys a margin of discretion in deciding in favour or against an investment. However, despite that margin of discretion, a prudent private investor always carries out an assessment of the potential profitability of the investment before it commits any money.   Introduction When a public […]
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14. July 2015  |   State Aid Uncovered by Phedon Nicolaides

Using Loans to Grant De Minimis Aid and GBER Compatible Aid
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De minimis aid underpins “off-the-shelf” financial instruments which leverage private investment and at the same time ensure that all aid is passed on to the final beneficiary.   Introduction One of the most convenient aid instruments is de minimis aid. It can be used for any purpose [apart from promotion of exports or on condition that domestic products are favoured] […]
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