State Aid Law Blog

State Aid Uncovered by Prof Phedon Nicolaides

On a weekly basis Phedon Nicolaides posts critical analysis pieces on the latest State aid judgments and decisions on his blog State Aid Uncovered. Each article presents the main points of a court ruling or Commission‘s decision, places them in the context of similar case law or practice, assesses the underlying reasoning, and identifies any inconsistencies or contradictions.
Occasional guest blog posts by other State aid experts complement the State aid knowledge hub.

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Professor at Maastricht University; Professor at University of Nicosia, and Academic Director at Lexxion Training

Top 5 Most Read State Aid Uncovered Posts of the Year

Questions around Altmark, the Market Economy Investor Principle, the granting of De Minimis aid and many more have moved and shaped this year’s judgments on State aid. See which articles by Prof. Phedon Nicolaides were the most popular ones in 2015.   With the approach of the end of the third year of Prof. Nicolaides’ blog State Aid Uncovered, we […]

Regional Aid to Car Manufacturers

Regional aid, like all State aid, must be necessary and proportional. Regional aid is necessary when investment in an assisted region is more costly. Regional aid is proportional when it does not exceed the amount which can make the investment sufficiently profitable or offset the cost disadvantage of investment in an assisted region.   Introduction In July 2014, the European […]

Altmark, again!

Sectoral regulation is not the same as definition of public service obligation. Aid that favours a certain technology is incompatible with the internal market, unless it can be objectively justified.   Introduction “Altmark” has become a permanent feature in the landscape of State aid. Its application was again one of the main issues of contention in six judgments rendered by […]

Top 3 State Aid Blog Posts from 2015

From Amazon’s ‘advance pricing agreement’ over State aid to the Hungarian electricity market to Black Cabs’ exclusive rights in London, our guest bloggers on the StateAidHub have shed light on various controversial State aid judgments and developments. View now the most popular posts of 2015.   As 2015 and therefore the StateAidHub’s first year draws to a close, we thank […]

i) New v Existing State Aid ii) Exemption from VAT and Attribution to Member States iii) The Duty of National Courts to Protect Competitors from Illegal State aid

Aid that pre-exists the entry of a Member State into the EU is “existing” and does not have to be recovered. VAT exemptions authorised by the EU are not State aid. National courts must disregard national legal provisions that prevent them from acting against illegal aid.   Introduction This article examines a variety of issues: when State aid is existing […]

The Interpretation of Conflicting Norms regarding the Validity of State Aid Infolding Contracts Must Be Consistent with the Safeguard of Individual Rights Created by EU State Aid Law (C 505/14, Klausner)

The following blog post is another contributory piece by Emanuela Matei, Associate Researcher at the Centre of European Legal Studies, Bucharest. Matei holds a Juris Master in European Business Law (Lund University, June 2012), a Magister legum (Lund University, June 2010) and a BSc in Economics & Business Administration (Lund University, June 2009). We are very glad to welcome her […]

Court’s Diary – December 2015

Find below the court’s diary for all State aid cases. 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 07/12/2015 Judgment in Case T-242/12 – SNCF v Commission (General Court – Seventh Chamber)   Thursday 17/12/2015 Judgment in […]

Investment and Operating Aid to Airports

State aid is granted on the date the relevant public authority makes an irrevocable commitment to grant it or creates a legal entitlement for the beneficiary. Loans that impose public policy obligations on borrowers are not in conformity with the behaviour of a private investor.   Introduction This is a rather long article because it examines a rich case that […]

Market Economy Investor Principle

Public investment is free of State aid when it is made at the same time and on equal terms with investments by private investors. In the absence of an equivalent private investment, public investment does not constitute State aid when it is demonstrated ex ante that it is capable of generating market rates of return.   Introduction Public authorities are […]

Special Tax Treatment to Alleviate Structural Disadvantages

Favourable tax treatment to alleviate “structural disadvantages” suffered by certain companies is a selective measure that falls within the scope of Article 107(1).   Introduction Member States use taxes not just to raise revenue but also as instruments of public policy. They impose taxes on activities they want to discourage [e.g. smoking, driving] and they relieve from taxes activities they […]

Reduction of Property Taxes and Electricity Tariffs

Relief from property tax is State aid even when the user of the property is involved in defence contracts. Providing cheaper electricity to a few manufacturers cannot be considered to be an appropriate measure for regional development. Introduction This article summarises several judgments which were delivered in October 2014. They concern a tax exemption in Spain and reduction of electricity […]

The Market Economy Investor Test Applied to a Financially Troubled Company

Public funding of an undertaking is free of State aid when it is accompanied at the same time and on equivalent terms by similar private funding. If public funding is provided at the insistence of the private investors, it cannot be considered to be “pari passu” with the private participation. Public funding into a financially troubled company can still be […]

A Measure is Selective if its Application is Narrower than the Scope of the Objective it Seeks to Achieve

A measure is attributed to a decision of a Member State if it is allowed but not mandated by an EU directive. A measure is selective when in practice it is open to fewer undertakings than the ones to which it can potentially apply by its own defined objectives. Introduction   This article examines Commission Decision 2014/686 on a guarantee […]

i) State Aid Can Be Attributed to the State even when Granted via Faulty Procedures ii) Who Can Challenge a Commission Decision Authorising State Aid?

For a measure to constitute State aid, it must, among other things, be attributed to a decision of the state. When a State aid granting decision is made in contravention of the procedural rules of an organisation controlled by the state, the decision can still be attributed to the state, unless it can be shown that the state would have […]

Advantage from High Entry Prices: Can It Be That Both the Commission and the General Court Have Misunderstood Simple Economics?

Price regulation can constitute State aid if the state forgoes potential revenue. However, for price regulation to constitute State aid it must satisfy all of the criteria in Article 107(1). Price regulation that affects all competitors proportionately does not confer an advantage and therefore does not constitute State aid. Introduction   On 11 September 2014, the General Court, in case […]

i) Domestic Legal Problems Do Not Make the Recovery of Incompatible Aid Absolutely Impossible ii) Role of National Courts in Cases of Non-notified Aid

The only defence for non-recovery of incompatible State aid is absolute impossibility. Obstacles in domestic legal proceedings may result in absolute impossibility, but Member States have an obligation to inform the Commission and national courts have to seek guidance from the Court of Justice of the European Union. Introduction   This article deals with two aspects of the recovery of […]

The Jurisdictional Side of Selectivity

A measure determined independently by similar public entities is not selective even if it varies across those entities. A measure is selective when the entity that has adopted it, applies it differently to undertakings which are within its jurisdiction and in a comparable situation. A public entity may differentiate its measures provided the differentiation can be objectively justified. Introduction   […]

Restructuring Aid Approved on Condition that the Beneficiary Is Sold to Highest Bidder

The Commission has wide discretion in assessing the compatibility of State aid with the internal market. Each case is assessed on its own merits and, therefore, the Commission is not bound by precedents or decisions on previous cases. Sale of shares held by public authorities may be required if divestment is necessary for long-term viability of aid beneficiary. Introduction   […]

Simultaneity of Investments by Public and Private Investors is a Necessary but not Sufficient Condition for Public Investments to be Free of State Aid

If a public authority guarantees a loan to a company that is in financial difficulty and charges a low premium, the whole loan, not just the difference between the market rate of premium and the rate actually charged, will be considered to be State aid. Simultaneous capital injection by public and private investors is not enough to eliminate State aid […]

Not Surprisingly, Another Member State Fails to Prove Compliance with the Altmark Criteria

Maintaining capacity that is necessary for the provision of normal services cannot be classified as a service of general economic interest. State aid may not be granted towards the costs of cleaning up pollution caused by the aid recipient itself. State aid to a legal monopoly may still affect trade if there is competition for the monopoly rights or if […]

How to Submit a Blog Post

Do you want to share your analysis of a State aid law topic? We invite you to submit your post on, for example: recent European, national or international judgments or legislation with relevance to EU State aid law; new developments, publications, hot topics in EU State aid law. The recommended length of the post is 500-2,000 words incl. references (endnotes). Your analysis will be published under the category ‘Guest State Aid Blog’.

Here’s how you can publish a post on the Blog as a guest author:

Step 1: Submit your draft to Nelly Stratieva at [email protected].

Step 2: We at Lexxion will review your draft to make sure its content and quality fit the blog. If needed, they will suggest what improvements you should make.

Step 3: Once your draft has been finalised and accepted, we will publish your post.

Submit your guest blog post

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