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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12. April 2016 | State Aid Uncovered by Phedon Nicolaides

The Private Creditor Test: All Options Must be Taken into Account

A private investor always takes into account all available information before it makes any investment. Similarly, a private creditor takes into account all available options for recovering the largest possible amount of the money that is due. Such options may include different legal procedures. In assessing alternative options, a private creditor considers not only the amount that may be recovered, […]

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5. April 2016 | State Aid Uncovered by Phedon Nicolaides

Local Infrastructure

State Aid Blogs - StateAidHub blogpost47 Finance lexxion GBER SMEs

Public funding of local infrastructure is not State aid when the responsibility for the infrastructure falls within the remit of public authorities, it is not commercially exploited, it is open to all users, it is not intended to support the needs of any particular undertaking and any benefits to any undertaking are incidental. Introduction Even since the adoption of […]

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4. April 2016 | Guest State Aid Blog by Lexxion Publisher

Court’s Diary – April 2016

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 14/04/2016 Judgment in Case C-100/15 P – Netherlands Maritime Technology Association v Commission (Court of […]

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30. March 2016 | State Aid Uncovered by Phedon Nicolaides

The Treatment of Advisory and Information Services under State Aid Rules: The Case of the German Milk Levy

Public funding of advisory and information activities may constitute State aid. Public funding of industry associations may constitute State aid. Introduction An article that was published on this blog in January (view the article HERE) dealt with the issue of compulsory tests. If tests which are intended to safeguard public health are paid for by the state, is there any […]

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23. March 2016 | State Aid Uncovered by Phedon Nicolaides

Compensatory Payments Can still Confer an Advantage

Membership of a compulsory insurance scheme can still confer an advantage to participating undertakings. Private contributions can still become state resources if they are paid into a fund that is managed by the state. Member States always have the option to ask for a measure to be assessed directly on the basis of the Treaty but they have to justify […]

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15. March 2016 | State Aid Uncovered by Phedon Nicolaides

a) Natural Disasters and b) Absolute Impossibility to Recover Incompatible State Aid

Aid to remedy the damage caused by natural disasters can be granted only if the damage is the direct consequence of the disaster and the amount of aid must be limited to the actual damage suffered by each individual undertaking. Absence of documentary evidence can lead to absolute impossibility to recover incompatible aid. Introduction Article 107(2) TFEU declares three […]

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8. March 2016 | State Aid Uncovered by Phedon Nicolaides

When Infrastructure is not Public: Dedicated, Project-Specific and Bespoke

State Aid Blogs - alex kalinin 8bs Kz8ACdM unsplash

Public funding of open and freely used infrastructure is not State aid. Public funding of project-specific, dedicated or bespoke infrastructure is State aid. Public funding of infrastructure connecting public and private parts may be State aid if the relevant national rules require developers to bear the cost. Introduction The Commission has recently examined an infrastructure project in the vicinity […]

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4. March 2016 | Guest State Aid Blog by G. Guðmundsson

Being a Competition and State Aid Trainee at the EFTA Surveillance Authority

We are happy to welcome two young professionals on the State Aid Blog today. Guðmundur Guðmundsson and Amie Eliassen are trainees at EFTA Surveillance Authority in the Competition and State Aid Directorate and give their insights on working in this dynamic and multicultural work environment. You want to apply for a traineeship yourself? Read on for more information. The […]

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3. March 2016 | Guest State Aid Blog by Lexxion Publisher

Court’s Diary – March 2016

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. Tuesday 01/03/2016 Judgment in Case T-79/14 – Secop v Commission (General Court – First Chamber) Thursday 03/03/2016 Judgment […]

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1. March 2016 | State Aid Uncovered by Phedon Nicolaides

How to Apply the Market Economy Investor Principle and what Mistakes to Avoid: The Long-running Case of EDF

State Aid Blogs - 17.10. imputability stateaid

A market investor carries out a thorough ex ante analysis of the prospects of an investment before it commits any money. Introduction In 2004, the European Commission concluded, in decision 2005/145, that France granted incompatible aid to Electricite de France [EDF]. The French government had converted tax liability into share capital in EDF. The Commission was of the […]

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24. March 2015 | State Aid Uncovered by Phedon Nicolaides

Loans for SMEs

Low-interest loans may be used to support investments. The granting of de minimis aid through loans is possible only if loans are secured against collateral. The 2008 Commission Communication on interest rates does not apply to subordinated, non-collateralised loans. Introduction “Investment for growth” is the slogan which seems to be on everybody’s lips in Brussels. Last Friday, the European […]

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16. March 2015 | State Aid Uncovered by Phedon Nicolaides

Relief from Pension Contributions and Reduction of Taxes

State Aid Blogs - StateAidHub blogpost38 saleofbank

Compensation for structural disadvantages encumbering undertakings is still State aid. Compensation for structural disadvantages encumbering SGEI providers is not State aid only if it satisfies the Altmark criteria. Reductions of excise duties approved by the Council may still be subject to scrutiny by the Commission under State aid rules. Exception of fossil fuel from energy taxes when it is not […]

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10. March 2015 | State Aid Uncovered by Phedon Nicolaides

Non-Economic Activities

State Aid Blogs - 05.12.Imputability of Aid State aidz

Health insurance which is based on the principle of social solidarity is not economic in nature. Solidarity means that citizens have a right to the service in question and the quality of the service they obtain is not linked to the price they pay, if any. Health services which are provided privately for remuneration are economic in nature. Services provided […]

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2. March 2015 | State Aid Uncovered by Phedon Nicolaides

A New but Dubious Concept of Advantage [1]

When the Commission orders recovery of aid that is intended to be passed on to final consumers, it must first calculate the amount, if any, that has been retained by the direct recipients of the aid. If the calculation is too complex, the Commission can delegate that task to national authorities. Introduction On 5 February 2015, the General Court ruled […]

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24. February 2015 | State Aid Uncovered by Phedon Nicolaides

Exclusive Rights

The granting of exclusive rights may confer an advantage but does not in itself result in transfer of state resources. Private undertakings that hold exclusive rights are not utilising state resources by the mere fact that they operate under rights conferred by the state. Price regulation is a regulatory act which does not entail transfer of state resources. Introduction […]

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18. February 2015 | State Aid Uncovered by Phedon Nicolaides

Failure to Satisfy Ex Post the Altmark Criteria, but Compliance with the 2014 Aviation Guidelines

State Aid Blogs - StateAidHub blogpost2 2019 lexxion stateaid airports

Public service obligations must be entrusted by an official act and defined with sufficient precision. Imprecise definition of public service obligations makes it impossible to identify the costs which are caused by such obligations. Consequently, imprecise definition of public service obligations makes it impossible to grant compensation because subsidisation of non-eligible costs cannot be excluded. Compensation may not be granted […]

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9. February 2015 | State Aid Uncovered by Phedon Nicolaides

Restructuring and the Market Economy Investor Principle

Different interventions that aim to finance the same restructuring plan constitute a single measure. A private investor may consider a possible damage of its reputation from laying off workers but the damage has to be quantified. Finance support of employees provides an indirect benefit to the employer. Introduction In this article I review two similar cases: a judgment of […]

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3. February 2015 | State Aid Uncovered by Phedon Nicolaides

i) Environmental Harm Does Not Make State Aid Incompatible with the Internal Market ii) the Market Economy Investor Principle Applied to Monopolies

Security of energy supply can be a service of general economic interest. Avoiding harm to the environment is not one of the principles that underpin the internal market and which may not be violated by State aid measures. Determining whether competition is distorted does not require definition of the relevant markets. This article examines two apparently different but in […]

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26. January 2015 | State Aid Uncovered by Phedon Nicolaides

Non-Commercial Public Infrastructure: Another Judgment, More Questions

Public infrastructure which is not exploited for commercial purposes does not result in an advantage for its users. Undertakings which are subject to different regulatory requirements can be treated differently. Cross-border trade can be affected even when there is no direct provision of cross-border services. Introduction The Leipzig-Halle judgment of 2011 was a shock to public funding of infrastructure […]

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19. January 2015 | State Aid Uncovered by Phedon Nicolaides

Use of Publicly-Funded Infrastructure without State Aid

Public funding of infrastructure which is open to any user does not constitute State aid. Public funding for the upgrading/extension of infrastructure in view of expected increase in the number of users is not State aid as long as it is not designed for the specific needs of certain users.Fees charged to users of publicly-funded infrastructure must cover incremental costs […]

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State Aid Uncovered Blog

The Private Creditor Test: All Options Must be Taken into Account

Local Infrastructure

Court’s Diary – April 2016

The Treatment of Advisory and Information Services under State Aid Rules: The Case of the German Milk Levy

Compensatory Payments Can still Confer an Advantage

a) Natural Disasters and b) Absolute Impossibility to Recover Incompatible State Aid

When Infrastructure is not Public: Dedicated, Project-Specific and Bespoke

Being a Competition and State Aid Trainee at the EFTA Surveillance Authority

Court’s Diary – March 2016

How to Apply the Market Economy Investor Principle and what Mistakes to Avoid: The Long-running Case of EDF

Loans for SMEs

Relief from Pension Contributions and Reduction of Taxes

Non-Economic Activities

A New but Dubious Concept of Advantage [1]

Exclusive Rights

Failure to Satisfy Ex Post the Altmark Criteria, but Compliance with the 2014 Aviation Guidelines

Restructuring and the Market Economy Investor Principle

i) Environmental Harm Does Not Make State Aid Incompatible with the Internal Market ii) the Market Economy Investor Principle Applied to Monopolies

Non-Commercial Public Infrastructure: Another Judgment, More Questions

Use of Publicly-Funded Infrastructure without State Aid

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