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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14. April 2014  |   State Aid Uncovered by Phedon Nicolaides

The Importance of a Correct Framing of the Private Creditor and Private Investor Tests
people in backlight
A public authority acting as private creditor must exhaust all legally available means of recovering money owed to it. A private creditor may agree to an amicable arrangement – depending on the complexity and duration of legal proceedings, the value of the collateral it holds and the chances of long-term viability of the debtor – if it results in repayment of […]
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4. April 2014  |   State Aid Uncovered by Phedon Nicolaides

Guidance on the Application of Regulation 1370/2007 on Passenger Transport Services
train entering station
Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how […]
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28. March 2014  |   State Aid Uncovered by Phedon Nicolaides

Competitive Elements in the Selection of Operators of Sports Infrastructure May not Be Enough to Eliminate State Aid
sport arena seats
The existence of an advantage cannot be excluded when the operator of an infrastructural facility is chosen through a competitive procedure which combines price with other selection criteria. The users of a subsidised infrastructural facility who pay a market fee may still derive an advantage when the facility is designed and/or reserved for certain usage. Introduction   Ever since the Leipzig-Halle […]
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21. March 2014  |   State Aid Uncovered by Phedon Nicolaides

Public Funding of Projects that Encounter Financial Problems
motorway
Aid that is granted after the start of a project lacks incentive effect and is, therefore, incompatible with the internal market. However, aid may be justified when a project runs into financial trouble and, as a result, is likely to be abandoned without the aid. Introduction   In two decisions in December 2013, the European Commission authorised State aid for two […]
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14. March 2014  |   State Aid Uncovered by Phedon Nicolaides

SMEs Linked through Natural Persons
corporate building
Two or more enterprises may constitute a single undertaking when their owners and/or managers are related in a way that they can act jointly to exercise influence over the decision of those enterprises. Introduction   On 27 February 2014, the Court of Justice rendered a judgment on the notion of “linked enterprises” following a request for preliminary ruling from a […]
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6. March 2014  |   State Aid Uncovered by Phedon Nicolaides

The New Guidelines on State Aid to Airports and Airlines: Problematic Issues (part 2)
man looking airplane takeoff
Introduction Last week I reviewed the main provisions of the new Guidelines on State Aid to Airports and Airlines. This week I focus on three issues which are either not well explained or too ambiguous, leaving too much room for creative interpretation. [1] Investment funding gap The new Guidelines, like the other new rules, stress that aid must have an incentive […]
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28. February 2014  |   State Aid Uncovered by Phedon Nicolaides

The New Guidelines on State Aid to Airports and Airlines (part 1)
man looking airplane takeoff
Introduction[1] One more set of State aid rules for 2014-20 has been adopted. On Thursday, 20 February 2014, the Commission published its Guidelines on State Aid to Airports and Airlines.[2] The other main substantive rules which are already in place are the following, in chronological order:[3] The package on services of general economic interest (SGEI): A Communication, a Decision (like a […]
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21. February 2014  |   State Aid Uncovered by Phedon Nicolaides

The Role of National Courts in Recovery of Incompatible State Aid
court house
Introduction In December I examined the judgment in the case of Lufthansa v Frankfurt-Hahn, which laid down certain obligations for national courts whenever they are petitioned to suspend and even recover aid that happens to be at the same time under investigation by the Commission. In this article I review the judgment of the Court of Justice of 13 February […]
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14. February 2014  |   State Aid Uncovered by Phedon Nicolaides

An Assessment of the State Aid Consistency of Financial Instruments Supported by Structural and Investment Funds (Regulation 1303/2013)
coins on the table
Introduction Last week I reviewed the new State aid guidelines on risk finance. This week I will examine the provisions on financial instruments in the new structural and investment funds regulation. The regulation was published in the Official Journal just before Christmas. Both sets of rules have been updated on the basis of similar principles. The primary aim of both […]
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4. February 2014  |   State Aid Uncovered by Phedon Nicolaides

Guidelines on State Aid to Promote Risk Finance Investments
financial graph
Introduction   On 15 January the Commission adopted the fourth set of guidelines for the programming period 2014-2020 [the first three were those on broadband, SGEI, and regional aid]. The latest guidelines replaced those on risk capital for SMEs. What is immediately noticeable from the title of the new guidelines is that they are not confined only to funding in […]
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