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.

Subscribe now!

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
State Aid Blogs - m 32 1
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 […]
read more
No Comments
23. March 2016  |   State Aid Uncovered by Phedon Nicolaides

Compensatory Payments Can still Confer an Advantage
State Aid Blogs - m 33 1
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 […]
read more
No Comments
15. March 2016  |   State Aid Uncovered by Phedon Nicolaides

a) Natural Disasters and b) Absolute Impossibility to Recover Incompatible State Aid
State Aid Blogs - m 34 1
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 […]
read more
No Comments
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 […]
read more
No Comments
4. March 2016  |   Guest State Aid Blog by G. Guðmundsson

Being a Competition and State Aid Trainee at the EFTA Surveillance Authority
efta
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 […]
read more
No Comments
3. March 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – March 2016
gavel
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 […]
read more
No Comments
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 […]
read more
No Comments
23. February 2016  |   State Aid Uncovered by Phedon Nicolaides

How to Determine the Selectivity of a Tax Measure
State Aid Blogs - m 8 1
A tax exception is normally a selective measure. However, exceptions which are open to all undertakings are not selective, even if they deviate from the standard tax rate or base. Exceptions which are open only to a few undertakings escape from being classified as selective only when the beneficiary undertakings are in a different legal or factual situation than non-beneficiaries. […]
read more
No Comments
16. February 2016  |   State Aid Uncovered by Phedon Nicolaides

The Boundaries of Non-Economic Infrastructure and the Limits of the Funding Gap Method
State Aid Blogs - m 35 1
Public funding of assets which are used exclusively by certain undertakings constitutes State aid. If the state chooses to fund certain assets or activities, then it must do so consistently in all regions and in relation to all affected undertakings.   Introduction A typical mission of the state is to provide public goods. Normally public funding of public goods is […]
read more
No Comments
9. February 2016  |   State Aid Uncovered by Phedon Nicolaides

Connecting Public and Private Infrastructure
State Aid Blogs - m 36 1
Public funding of public infrastructure is not State aid. Public funding of connections between public and private infrastructure is not State aid as long as it is open to all users and no fee is charged.   Introduction Last week’s article examined the use of a port facility. This week the focus is on a related issue: investment in port […]
read more
No Comments
« Previous PageNext Page »

2. March 2015  |   State Aid Uncovered by Phedon Nicolaides

A New but Dubious Concept of Advantage [1]
State Aid Blogs - m 18 2
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 […]
read more
No Comments
24. February 2015  |   State Aid Uncovered by Phedon Nicolaides

Exclusive Rights
State Aid Blogs - m 19 2
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   […]
read more
No Comments
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 […]
read more
No Comments
9. February 2015  |   State Aid Uncovered by Phedon Nicolaides

Restructuring and the Market Economy Investor Principle
State Aid Blogs - m 20 2
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 […]
read more
No Comments
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
State Aid Blogs - m 21 2
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 […]
read more
No Comments
26. January 2015  |   State Aid Uncovered by Phedon Nicolaides

Non-Commercial Public Infrastructure: Another Judgment, More Questions
State Aid Blogs - m 23 2
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 […]
read more
3 Comments
19. January 2015  |   State Aid Uncovered by Phedon Nicolaides

Use of Publicly-Funded Infrastructure without State Aid
State Aid Blogs - m 22 2
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 […]
read more
4 Comments
12. January 2015  |   State Aid Uncovered by Phedon Nicolaides

“Good” Procedures Make “Good” State Aid: Ex Ante Conditionality for Effective Application of EU State Aid Rules
State Aid Blogs - 21.11.State resources State control
Structural fund rules for the period 2014-2020 define ex ante conditionalities that have to be satisfied by Managing Authorities that use EU funds to grant State aid. The ex ante conditionalities aim to strengthen the administrative capacity of Managing Authorities to grant State aid correctly. The European Commission has issued guidance on arrangements that can lead to improved administrative capacity. […]
read more
No Comments
5. January 2015  |   State Aid Uncovered by Phedon Nicolaides

Tax Measures with Specific Objectives Can still Be General
State Aid Blogs - m 24 2
A tax measure that applies to certain transactions is not selective if it does not preclude any company or type of asset. Conditions for the application of a tax measure may be justified by the logic of the tax system. The Commission may not use Article 107(3) to assess the compatibility with the internal market of a tax measure that […]
read more
No Comments
29. December 2014  |   State Aid Uncovered by Phedon Nicolaides

Another Measure that Cannot Be Justified by the Logic of the Tax System
airplanes on the airport
The granting of a tax exception is often found to constitute State aid. But the non-levying of a tax may also fall within the scope of Article 107(1). Competitors have more rights when the Commission does not open the formal investigation procedure.   IntroductionOn 25 November 2014, the Court of Justice, in case T-512/11, Ryanair v European Commission, annulled Commission […]
read more
No Comments
« Previous PageNext Page »

Subscribe to our newsletter for updates on legal developments, upcoming conferences, workshops, and publications in your areas of interest.

Newsletter: Subscribe now