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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26. March 2024  |   State Aid Uncovered by Phedon Nicolaides

Applying the Funding Gap Method to an Important Project of Common European Interest – Part II
State Aid Blogs - State Aid Uncovered photos 7
Introduction On 28 February 2024, the General Court delivered an important judgment in case T-390/20, Scandlines v Commission.(1) The judgment is important because it interpreted the Commission guidelines on Important Projects of Common European Interest [IPCEI], the funding gap methodology for determining the necessary amount of aid and the 2008 Commission Notice on state guarantees. Scandlines sought annulment of Commission […]
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19. March 2024  |   by Phedon Nicolaides

Applying the Funding Gap Method to an Important Project of Common European Interest – Part I
State Aid Blogs - State Aid Uncovered photos 1
Introduction On 28 February 2024, the General Court delivered an important judgment in case T-390/20, Scandlines v Commission.(1) The judgment is important because it interpreted the Commission guidelines on Important Projects of Common European Interest [IPCEI], the funding gap methodology for determining the necessary amount of aid and the 2008 Commission Notice on state guarantees. Scandlines sought annulment of Commission […]
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12. March 2024  |   State Aid Uncovered by Phedon Nicolaides

Public Infrastructure and State Prerogatives
State Aid Blogs - State Aid Uncovered photos
Introduction On 28 February 2024, the General Court delivered two important judgments on the presence of State aid and its compatibility with the internal market in connection to public funding of the Fehmarn Fixed Link between Denmark and Germany. The Fixed Link is a major infrastructure project consisting of tunnels, bridges and access road and rail connections. The judgments of […]
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5. March 2024  |   State Aid Uncovered by Phedon Nicolaides

State Aid and Arbitration of Disputes
State Aid Blogs - State Aid Uncovered photos
Introduction On 22 February 2024, the Court of Justice [CJEU] delivered its judgment in joined Cases C-701/21 P and C-739/21 P, Mytilinaios v DEI & European Commission. Mytilinaios, a Greek company, and the Commission appealed against the judgment of the General Court in case T-639/14 RENV, DEI v Commission, concerning arbitration of a dispute between Mytilinaios and DEI, the main […]
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27. February 2024  |   State Aid Uncovered by Phedon Nicolaides

A Large Regional Investment Project in Spain
State Aid Blogs - State Aid Uncovered photos 6
Introduction Most State aid to “large” investment projects is granted by the Member States in Central and Eastern Europe. Moreover, most of the aid goes to induce companies to locate their projects in those countries and to overcome regional handicaps that make the investments less profitable or even loss-making than in other locations. By contrast, regional aid granted to large […]
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20. February 2024  |   State Aid Uncovered by Phedon Nicolaides

Another Case of Indirect State Aid
State Aid Blogs - State Aid Uncovered photos 4
Introduction On 19 May 2021, the General Court, in case T-643/20, Ryanair v Commission, annulled Commission decision SA.57116 by which it authorised State aid in favour of KLM in the context of the measures implemented by the Dutch government to address the covid-19 pandemic. In July 2021, the Commission re-adopted its original decision without the errors that had been identified […]
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13. February 2024  |   State Aid Uncovered by Phedon Nicolaides

State Resources, Control and Imputability
State Aid Blogs - State Aid Uncovered photos 1
Introduction A public measure can be classified as State aid only when it is funded from state resources. Measures funded from the budgets of public authorities are always considered to be supported by state resources. However, measures not funded from state budgets may still be supported by state resources. This is because, rather counterintuitively, the concept of state resources covers […]
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6. February 2024  |   State Aid Uncovered by Phedon Nicolaides

Indirect Beneficiaries of State aid
State Aid Blogs - State Aid Uncovered photos 3
Introduction The prohibition of State aid in Article 107(1) TFEU applies both to direct and indirect beneficiaries. The direct beneficiary is the formal recipient of the aid. However, the formal recipient may only act as an intermediary through which aid flows to third parties or may in fact be required by the aid measure to pass on some or most […]
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30. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Non-contractual Liability in the Field of State aid
State Aid Blogs - State Aid Uncovered photos 2 1
Introduction The Commission, in its control of State aid, occasionally makes mistakes. EU courts may annul erroneous Commission decisions. This raises the question whether affected undertakings may ask for compensation. The answer is that in order to be eligible for compensation, an undertaking must have suffered damage as a result of an error that constitutes a “serious breach” of EU […]
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23. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Public Service Compensation and Indexation of Costs
State Aid Blogs - State Aid Uncovered photos 2
Introduction Member States may impose public service obligations [PSO] on undertakings and compensate them for the extra costs they incur. The public service compensation [PSC] may also include reasonable profit. Naturally, the PSC may not cover costs that are not related to the PSO or the service of general economic interest [SGEI]. So, for multi-service providers, account separation is absolutely […]
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5. March 2024  |   State Aid Uncovered by Phedon Nicolaides

State Aid and Arbitration of Disputes
State Aid Blogs - State Aid Uncovered photos
Introduction On 22 February 2024, the Court of Justice [CJEU] delivered its judgment in joined Cases C-701/21 P and C-739/21 P, Mytilinaios v DEI & European Commission. Mytilinaios, a Greek company, and the Commission appealed against the judgment of the General Court in case T-639/14 RENV, DEI v Commission, concerning arbitration of a dispute between Mytilinaios and DEI, the main […]
read more
No Comments
27. February 2024  |   State Aid Uncovered by Phedon Nicolaides

A Large Regional Investment Project in Spain
State Aid Blogs - State Aid Uncovered photos 6
Introduction Most State aid to “large” investment projects is granted by the Member States in Central and Eastern Europe. Moreover, most of the aid goes to induce companies to locate their projects in those countries and to overcome regional handicaps that make the investments less profitable or even loss-making than in other locations. By contrast, regional aid granted to large […]
read more
No Comments
20. February 2024  |   State Aid Uncovered by Phedon Nicolaides

Another Case of Indirect State Aid
State Aid Blogs - State Aid Uncovered photos 4
Introduction On 19 May 2021, the General Court, in case T-643/20, Ryanair v Commission, annulled Commission decision SA.57116 by which it authorised State aid in favour of KLM in the context of the measures implemented by the Dutch government to address the covid-19 pandemic. In July 2021, the Commission re-adopted its original decision without the errors that had been identified […]
read more
No Comments
13. February 2024  |   State Aid Uncovered by Phedon Nicolaides

State Resources, Control and Imputability
State Aid Blogs - State Aid Uncovered photos 1
Introduction A public measure can be classified as State aid only when it is funded from state resources. Measures funded from the budgets of public authorities are always considered to be supported by state resources. However, measures not funded from state budgets may still be supported by state resources. This is because, rather counterintuitively, the concept of state resources covers […]
read more
No Comments
6. February 2024  |   State Aid Uncovered by Phedon Nicolaides

Indirect Beneficiaries of State aid
State Aid Blogs - State Aid Uncovered photos 3
Introduction The prohibition of State aid in Article 107(1) TFEU applies both to direct and indirect beneficiaries. The direct beneficiary is the formal recipient of the aid. However, the formal recipient may only act as an intermediary through which aid flows to third parties or may in fact be required by the aid measure to pass on some or most […]
read more
No Comments
30. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Non-contractual Liability in the Field of State aid
State Aid Blogs - State Aid Uncovered photos 2 1
Introduction The Commission, in its control of State aid, occasionally makes mistakes. EU courts may annul erroneous Commission decisions. This raises the question whether affected undertakings may ask for compensation. The answer is that in order to be eligible for compensation, an undertaking must have suffered damage as a result of an error that constitutes a “serious breach” of EU […]
read more
No Comments
23. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Public Service Compensation and Indexation of Costs
State Aid Blogs - State Aid Uncovered photos 2
Introduction Member States may impose public service obligations [PSO] on undertakings and compensate them for the extra costs they incur. The public service compensation [PSC] may also include reasonable profit. Naturally, the PSC may not cover costs that are not related to the PSO or the service of general economic interest [SGEI]. So, for multi-service providers, account separation is absolutely […]
read more
No Comments
16. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Undertakings May also Carry out Non-economic Activities
State Aid Blogs - State Aid Uncovered photos 1
Introduction An undertaking is any entity that carries out economic activities regardless of how it is classified in national law or how it is financed. The General Court, in its judgment of 20 December 2023, in case T-166/21, Autorità di sistema portuale del Mar Ligure occidentale v European Commission, also clarified that if an undertaking also carries out tasks assigned […]
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9. January 2024  |   State Aid Uncovered by Phedon Nicolaides

National Court May Order Recovery of Illegal Aid that Is Considered Existing Aid
State Aid Blogs - State Aid Uncovered photos
Introduction The European Commission is required by Regulation 2015/1589 to order recover of State aid that it finds to be incompatible with the internal market. However, it may not order recovery of illegal aid – i.e. non-notified aid – until it assesses its compatibility with the internal market. By contrast, national courts have no competence to assess the compatibility of […]
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2. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Selectivity
State Aid Blogs - State Aid Uncovered photos 1
Introduction On 14 December 2023, the Court of Justice, in its judgment in joined cases C-693/21 P and C-698/21 P, EDP España & Naturgy Energy Group v European Commission, faulted the Commission for failing to provide a sufficient explanation why a Spanish measure was selective in the meaning of Article 107(1) TFEU.1 According to the Court of Justice, the Commission […]
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11. November 2015  |   Guest State Aid Blog by Dimitrios Kyriazis

Summary of Lexxion Seminar: State aid for Tax Measures on 26-27 October 2015, Brussels
Lexxion Seminar
The following is a summary of the main points that were presented and the issues that were discussed in the seminar on State aid in Tax Measures that was held in Brussels on 26-27 October 2015. The summary has been prepared for information purposes only and it is not meant to be a precise record of the proceedings of the […]
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5. November 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – November 2015
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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.   Wednesday 11/11/2015 Judgment in Case C-505/14 – Klausner Holz Niedersachsen (Court of Justice – Second Chamber) Thursday 12/11/2015 Judgment in […]
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22. October 2015  |   Guest State Aid Blog by Emanuela Matei

A new misnomer in State aid law: single economic unit with separate legal personality (C 357/14 P, Dunamenti Erőmű/Commission)
electricity grid cables
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 […]
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12. October 2015  |   Guest State Aid Blog by Lexxion Publisher

Courts’s Diary – October 2015
gavel
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, […]
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24. September 2015  |   Guest State Aid Blog by Gian Marco Galletti

How Reasonable The Private Investor May Be Assumed To Be? Corsica Ferries France
steel construction
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 […]
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1. September 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – September 2015
gavel
Any comments on #Stateaid? Get in touch: Stateaidhub[at]lexxion.eu   Thursday 03/09/2015   Judgment in Case C-89/14 – A2A (Court of Justice – Fifth Chamber)Tuesday 08/09/2015 Hearing in Case T-103/14 – Frucona Košice v Commission (General Court – Second Chamber)Thursday 17/09/2015 Judgment in Case C-33/14 P – Mory and Others v Commission (Court of Justice – Third Chamber)   Friday 18/09/2015 Judgment […]
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2. July 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – July 2015
gavel
Any comments on #Stateaid? Get in touch: Stateaidhub[at]lexxion.de Wednesday 01/07/2015 Opinion in Case C-357/14 P Dunamenti Erőmű v Commission (Court of Justice – Third Chamber)   Thursday 02/07/2015 Judgment in Joined cases T-425/04 RENV France v Commission, T-444/04 RENV Orange v Commission (General Court – Sixth Chamber, Extended Composition)   Wednesday 08/07/2015 Hearing in Case T-287/11 Heitkamp BauHolding v Commission (General Court – Ninth […]
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17. June 2015  |   Guest State Aid Blog by Lexxion Publisher

EStAL Best Reviewer Award 2014/2015
Last week our 13th Experts’ Forum on New Developments in European State Aid Law took place. From 10th to 12th June 2015 a group of enthusiastic professionals interested in State Aid gathered at the Club of the University Foundation in Brussels to discuss the most recent issues on the topic. In the realm of this conference, we were proud to announce our […]
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3. June 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – June 2015
gavel
Any comments on #Stateaid? Get in touch: Stateaidhub[at]lexxion.eu Thursday 04/06/2015 Judgment in Case C-15/14 P Commission v MOL (Court of Justice – First Chamber)   Tuesday 09/06/2015 Hearing in Case T-515/13 Spain v Commission (General Court – Seventh Chamber)   Wednesday 10/06/2015 Hearing in Case C-367/14 Commission v Italy (Court of Justice – Third Chamber) Hearing in Case T-719/13 Lico Leasing and Pequeños y […]
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27. April 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – May 2015
gavel
Interested in #Stateaid? Get in touch and write a blog post or a comment for the hub! Stateaidhub[at]lexxion.eu Wednesday 06/05/2015 Judgement in Case C-674/13 Commission v Germany (Court of Justice – Second Chamber) Hearing, Joined Cases T-50/06 RENV II, T-69/06 RENVII Ireland v Commission, Aughinish Alumina v Commission (General Court – First Chamber, Extended Composition)   Wednesday 13/05/2015 Judgement in Case […]
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