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

State Aid Uncovered ×

Tax Hypothecation and Economic Efficiency under Altmark: T-275/11, French Television 1 v Commission

Background France Télévisions is a limited company wholly owned by the French State. As France abolished advertising on public television, it also decided to provide financial compensation to France Télévisions. For this reason it introduced new taxes to generate revenue for the compensation: a tax on advertising and a tax on electronic communications. In January 2009, France notified to the […]

A Public Authority Can Behave Like a Private Investor even when the Beneficiary Has Little Prospect of Future Profitability

Introduction When a public authority invests in an undertaking, it must earn a return at market rates, otherwise the investment is State aid. Normally, it is much easier to prove that the investment has a reasonable prospect of profitability and, therefore, that it would be made by a private investor, when the recipient undertaking is in a good financial situation. […]

A Case of Public Funding of Infrastructure that Does not Constitute State Aid: But Many Questions Remain

Introduction After the landmark judgment in Leipzig-Halle, public authorities are justifiably careful to ensure that the infrastructure they fund is either free of State aid or, if that is unavoidable, that the State aid is compatible with the internal market. Recent cases have shown that there are two problems in this regard. First, public authorities must verify whether the organisations […]

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure

Introduction   The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]

The Offsetting of a Structural Disadvantage Is still State Aid

Introduction Normally it is conceptually and technically fairly easy to determine whether an undertaking benefits from a public measure. However, this task becomes considerably more difficult in two situations: i) when a public authority claims that it acts like a private investor and ii) when a public measure is intended to compensate for a disadvantage suffered by the beneficiary undertaking […]

The Emerging Doctrine of Inseparability and Compensation for Public Service Obligations [T-347/09, Germany v Commission]

Introduction In the landmark judgment in Leipzig Halle, the General Court stated that infrastructure which is inseparable from economic activity is itself economic and its public funding can fall in principle within the scope of Article 107(1) TFEU. The Court of Justice has confirmed this principle. On 12 September 2013, the General Court in its judgment in case T-347/09, Germany […]

Privatisation of Aeroportos de Portugal: Conflict between the National Economic Adjustment Programme and State Aid Rules?

Background Portugal notified to the Commission the privatisation of the “Aeroportos de Portugal” [ANA] for reasons of legal certainty [SA.36197].[1] ANA is the operator of most Portuguese airports. It manages eight airports across Portugal (Lisbon, Porto, Faro, Beja, and 4 airports in the Azores) that account for the vast majority of the commercial air traffic in the country. It is worth […]

Altmark and Public Procurement: Definition and Award of Contracts

Introduction Ever since the Court of Justice ruled on Altmark ten years ago there has been a growing literature on the specific conditions that have to be satisfied so that public assistance to a provider of services of general economic interest [SGEI] does not constitute state aid. In this context, the relationship between the Altmark criteria and the public procurement […]

Selectivity and Administrative Discretion

On 18 July 2013, in case C-6/12, the Court of Justice of the European Union rendered a judgment on an interesting aspect of the concept of selectivity.[1] The judgment concerned a request for preliminary ruling in a dispute between “P Oy”, a Finnish company, and Finnish tax authorities. The tax authorities refused to allow P Oy to deduct losses incurred in […]

The Confusion between Necessity and Proportionality of State Aid [Case SA.35738: Public Funding of Port Infrastructure]

Introduction Several postings in this blog have examined cases concerning funding of port, airport or sport infrastructure. These cases have all had interesting peculiarities. Some involved no state aid because public authorities acted as private investors, while in other cases the funding arrangements were designed in such a way so that the state aid to operators would not spill over […]

State Aid Uncovered ×

Tax Hypothecation and Economic Efficiency under Altmark: T-275/11, French Television 1 v Commission

Background France Télévisions is a limited company wholly owned by the French State. As France abolished advertising on public television, it also decided to provide financial compensation to France Télévisions. For this reason it introduced new taxes to generate revenue for the compensation: a tax on advertising and a tax on electronic communications. In January 2009, France notified to the […]

A Public Authority Can Behave Like a Private Investor even when the Beneficiary Has Little Prospect of Future Profitability

Introduction When a public authority invests in an undertaking, it must earn a return at market rates, otherwise the investment is State aid. Normally, it is much easier to prove that the investment has a reasonable prospect of profitability and, therefore, that it would be made by a private investor, when the recipient undertaking is in a good financial situation. […]

A Case of Public Funding of Infrastructure that Does not Constitute State Aid: But Many Questions Remain

Introduction After the landmark judgment in Leipzig-Halle, public authorities are justifiably careful to ensure that the infrastructure they fund is either free of State aid or, if that is unavoidable, that the State aid is compatible with the internal market. Recent cases have shown that there are two problems in this regard. First, public authorities must verify whether the organisations […]

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure

Introduction   The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]

The Offsetting of a Structural Disadvantage Is still State Aid

Introduction Normally it is conceptually and technically fairly easy to determine whether an undertaking benefits from a public measure. However, this task becomes considerably more difficult in two situations: i) when a public authority claims that it acts like a private investor and ii) when a public measure is intended to compensate for a disadvantage suffered by the beneficiary undertaking […]

The Emerging Doctrine of Inseparability and Compensation for Public Service Obligations [T-347/09, Germany v Commission]

Introduction In the landmark judgment in Leipzig Halle, the General Court stated that infrastructure which is inseparable from economic activity is itself economic and its public funding can fall in principle within the scope of Article 107(1) TFEU. The Court of Justice has confirmed this principle. On 12 September 2013, the General Court in its judgment in case T-347/09, Germany […]

Privatisation of Aeroportos de Portugal: Conflict between the National Economic Adjustment Programme and State Aid Rules?

Background Portugal notified to the Commission the privatisation of the “Aeroportos de Portugal” [ANA] for reasons of legal certainty [SA.36197].[1] ANA is the operator of most Portuguese airports. It manages eight airports across Portugal (Lisbon, Porto, Faro, Beja, and 4 airports in the Azores) that account for the vast majority of the commercial air traffic in the country. It is worth […]

Altmark and Public Procurement: Definition and Award of Contracts

Introduction Ever since the Court of Justice ruled on Altmark ten years ago there has been a growing literature on the specific conditions that have to be satisfied so that public assistance to a provider of services of general economic interest [SGEI] does not constitute state aid. In this context, the relationship between the Altmark criteria and the public procurement […]

Selectivity and Administrative Discretion

On 18 July 2013, in case C-6/12, the Court of Justice of the European Union rendered a judgment on an interesting aspect of the concept of selectivity.[1] The judgment concerned a request for preliminary ruling in a dispute between “P Oy”, a Finnish company, and Finnish tax authorities. The tax authorities refused to allow P Oy to deduct losses incurred in […]

The Confusion between Necessity and Proportionality of State Aid [Case SA.35738: Public Funding of Port Infrastructure]

Introduction Several postings in this blog have examined cases concerning funding of port, airport or sport infrastructure. These cases have all had interesting peculiarities. Some involved no state aid because public authorities acted as private investors, while in other cases the funding arrangements were designed in such a way so that the state aid to operators would not spill over […]

State Aid Uncovered ×

Tax Hypothecation and Economic Efficiency under Altmark: T-275/11, French Television 1 v Commission

Background France Télévisions is a limited company wholly owned by the French State. As France abolished advertising on public television, it also decided to provide financial compensation to France Télévisions. For this reason it introduced new taxes to generate revenue for the compensation: a tax on advertising and a tax on electronic communications. In January 2009, France notified to the […]

A Public Authority Can Behave Like a Private Investor even when the Beneficiary Has Little Prospect of Future Profitability

Introduction When a public authority invests in an undertaking, it must earn a return at market rates, otherwise the investment is State aid. Normally, it is much easier to prove that the investment has a reasonable prospect of profitability and, therefore, that it would be made by a private investor, when the recipient undertaking is in a good financial situation. […]

A Case of Public Funding of Infrastructure that Does not Constitute State Aid: But Many Questions Remain

Introduction After the landmark judgment in Leipzig-Halle, public authorities are justifiably careful to ensure that the infrastructure they fund is either free of State aid or, if that is unavoidable, that the State aid is compatible with the internal market. Recent cases have shown that there are two problems in this regard. First, public authorities must verify whether the organisations […]

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure

Introduction   The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]

The Offsetting of a Structural Disadvantage Is still State Aid

Introduction Normally it is conceptually and technically fairly easy to determine whether an undertaking benefits from a public measure. However, this task becomes considerably more difficult in two situations: i) when a public authority claims that it acts like a private investor and ii) when a public measure is intended to compensate for a disadvantage suffered by the beneficiary undertaking […]

The Emerging Doctrine of Inseparability and Compensation for Public Service Obligations [T-347/09, Germany v Commission]

Introduction In the landmark judgment in Leipzig Halle, the General Court stated that infrastructure which is inseparable from economic activity is itself economic and its public funding can fall in principle within the scope of Article 107(1) TFEU. The Court of Justice has confirmed this principle. On 12 September 2013, the General Court in its judgment in case T-347/09, Germany […]

Privatisation of Aeroportos de Portugal: Conflict between the National Economic Adjustment Programme and State Aid Rules?

Background Portugal notified to the Commission the privatisation of the “Aeroportos de Portugal” [ANA] for reasons of legal certainty [SA.36197].[1] ANA is the operator of most Portuguese airports. It manages eight airports across Portugal (Lisbon, Porto, Faro, Beja, and 4 airports in the Azores) that account for the vast majority of the commercial air traffic in the country. It is worth […]

Altmark and Public Procurement: Definition and Award of Contracts

Introduction Ever since the Court of Justice ruled on Altmark ten years ago there has been a growing literature on the specific conditions that have to be satisfied so that public assistance to a provider of services of general economic interest [SGEI] does not constitute state aid. In this context, the relationship between the Altmark criteria and the public procurement […]

Selectivity and Administrative Discretion

On 18 July 2013, in case C-6/12, the Court of Justice of the European Union rendered a judgment on an interesting aspect of the concept of selectivity.[1] The judgment concerned a request for preliminary ruling in a dispute between “P Oy”, a Finnish company, and Finnish tax authorities. The tax authorities refused to allow P Oy to deduct losses incurred in […]

The Confusion between Necessity and Proportionality of State Aid [Case SA.35738: Public Funding of Port Infrastructure]

Introduction Several postings in this blog have examined cases concerning funding of port, airport or sport infrastructure. These cases have all had interesting peculiarities. Some involved no state aid because public authorities acted as private investors, while in other cases the funding arrangements were designed in such a way so that the state aid to operators would not spill over […]

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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