The following blog post is a 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 […]
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.
22. October 2015 |
Guest State Aid Blog
by Emanuela Matei
20. October 2015 |
State Aid Uncovered
by Phedon Nicolaides
Should the amount of recoverable aid be similarly reduced by the amount that is allegedly passed on to consumers? I will argue the case against it. Introduction On 5 February 2015, the General Court, in cases T-473/12, Aer Lingus v Commission[1] and T-500/12, Ryanair v Commission[2], annulled Article 4 of Commission Decision 2013/199. In that decision the Commission found that a […]
13. October 2015 |
State Aid Uncovered
by Phedon Nicolaides
When Member States impose PSOs they are never allowed to grant even a single euro in excess of the net extra costs of the PSO. That is prohibited for the simple reason that it results in over-compensation. Introduction The Lexxion seminar on state aid for transport and transport infrastructure that took place in Brussels on 21-22 September (view […]
12. October 2015 |
Guest State Aid Blog
by Lexxion Publisher
Any comments on #Stateaid? Get in touch: Stateaidhub[at]lexxion.eu Thursday 01/10/2015 Judgment in Case C-357/14 P – Electrabel and Dunamenti Erőmű v Commission (Court of Justice – Third Chamber) Tuesday 06/10/2015 Judgment in Case C-303/13 P – Andersen v Commission (Court of Justice – Grand Chamber) Thursday 08/10/2015 Hearing in Joined Cases T-479/11 & T-157/12 – France v Commission, […]
5. October 2015 |
State Aid Uncovered
by Phedon Nicolaides
In this article I review Commission decision SA.37100 on JSC Liepajas Metalurgs [LM], once Latvia’s largest steel company and major employer. The decision examines whether Latvia acted promptly to recover a debt owed to it by a company that faced financial difficulties. The question was whether Latvia acted as a private creditor when it allowed the debtor to continue operations. […]
29. September 2015 |
State Aid Uncovered
by Phedon Nicolaides
A public authority, acting as a private investor, may provide finance which is free of state aid to an airport and at the same time grant state aid to the same airport. Public funding of activities that fall within the exclusive tasks of the state is not state aid. When a public authority defines the activities that fall within the […]
25. September 2015 |
State Aid Uncovered
by Phedon Nicolaides
Regulation 2015/1589 is the new procedural regulation. It lays down the rules for, among other things, notification of state aid, formal investigation, injunctions and recovery of incompatible aid. Because of its importance in the EU system of state aid control, it will be fully reviewed at a forthcoming article. In the Official Journal of 24 September 2015 you will find […]
24. September 2015 |
Guest State Aid Blog
by Gian Marco Galletti
The following article summary is a contributory piece by Gian Marco Galletti. The full piece was published in the Common Market Law Review. Galletti is working as a researcher at the Dickson Poon School of Law since 2013. He is currently working on a PhD in European law under the supervision of Prof. Andrea Biondi. He holds an LLB with […]
22. September 2015 |
State Aid Uncovered
by Phedon Nicolaides
Infrastructure that is commercially exploited [e.g. charging of tolls] is an economic activity. Infrastructure that is freely available to users is not economic activity. Access fees or tolls may be regulated. State aid must be necessary and proportional even if access fees are regulated. Introduction This article examines Commission decision SA.39078 concerning the Fehmarn belt fixed link in Denmark.[1] This […]
15. September 2015 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
22. July 2014 |
State Aid Uncovered
by Phedon Nicolaides
Revenue from levies on electricity users is most likely to constitute State resources. Public service obligations can be transferred from one electricity-generating company to another. Compensation for public service obligations may distinguish between controllable and uncontrollable costs. Performance benchmarking can be used as a means for inducing efficiency. Electricity levies may not directly or indirectly discriminate against imported electricity. Introduction This is a […]
16. July 2014 |
State Aid Uncovered
by Phedon Nicolaides
Public authorities and the entities they control need to ensure that injection of public money in an undertaking must satisfy the market economy investor principle, otherwise it will be considered to be State aid. Public funding of an undertaking in difficulty has to be preceded by an ex ante assessment that can show that either the recipient will be turned around […]
10. July 2014 |
State Aid Uncovered
by Phedon Nicolaides
The new GBER at a glance Common Provisions: aid must be transparent, must have incentive effect, rules on cumulation, and aid measures and awards must be published. Specific Provisions: Thirteen categories and many types of aid. Exclusions: no export aid, no mandated use of domestic products, no aid to firms in difficulty, no provisions that violate EU law, and no aid to […]
3. July 2014 |
State Aid Uncovered
by Phedon Nicolaides
Activities which are part of the performance of public duties are non-economic in nature [e.g. spatial development]. Public funding of these activities does not constitute State aid. The transfer of resources from one level of government to another is transfer between public authorities and does not constitute State aid. Competitive selected developers obtain no advantage. Purchasers of subsidised assets who pay market prices […]
25. June 2014 |
State Aid Uncovered
by Phedon Nicolaides
As more State aid measures in the future will be granted on the basis of the General Block Exemption Regulation, Member States will have to make the aid they grant more transparent. More transparency should prevent the granting of State aid that is incompatible with the internal market. However, Member States should also be assisted in identifying which public measures may contain […]
19. June 2014 |
State Aid Uncovered
by Phedon Nicolaides
Public funding of a public-private partnership for the construction and maintenance of public schools may still involve State Aid. State Aid may have an incentive effect even when it is granted to a project that has already started. The funding gap method can demonstrate the necessity and proportionality of State Aid. Introduction This article reviews Commission Decision SA.37168 concerning the construction […]
12. June 2014 |
State Aid Uncovered
by Phedon Nicolaides
Price Discounts and Compensation for Public Service Obligations: A Case of Questionable Need for Aid
SGEI can be defined and public service obligations can be imposed only when the market underprovides. The parameters of compensation must be determined in advance. Public service compensation may not exceed the next extra costs of the SGEI or PSO. Member States are free to devise their own method of compensation, but irrespective of the method used, compensation must comply with the basic […]
4. June 2014 |
State Aid Uncovered
by Phedon Nicolaides
The Commission is not obliged to quantify precisely the amount of aid that has to be recovered. The Member State that fails to recover incompatible aid or fails to recover all of it risks legal action against both before national and EU courts. The Commission may initiate infringement proceedings and request the Court of Justice to impose penalties against the failing Member […]
30. May 2014 |
State Aid Uncovered
by Phedon Nicolaides
The imposition of a public service obligation must be preceded by market analysis that shows that the market underprovides. For compensation of public service obligations to be compatible aid, it must satisfy the first three Altmark criteria. Surprisingly, the first three Altmark criteria must also be satisfied [in addition to the 4th criterion] for public service compensation in order not to constitute […]
20. May 2014 |
State Aid Uncovered
by Phedon Nicolaides
A market operator accepts to be bound in long-term contracts, which entail more risk because market conditions may change, only when he gets compensated with more certainty that costs will remain stable. Contractual clauses which vary from standard commercial practice are suspect. A measure can be selective even when it uses objective criteria to define eligible beneficiaries. Trade can be affected and competition […]