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!

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 […]
read more
No Comments
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 […]
read more
No Comments
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 […]
read more
No Comments
27. December 2023  |   State Aid Uncovered by Phedon Nicolaides

The Consequence of the Tax Autonomy of Member States
State Aid Blogs - State Aid Uncovered photos
Introduction The favourable tax treatment of multinational companies has long been in the sights of the Commission. However, the recent judgments on Fiat [C‑885/19 P, Fiat v Commission] and Engie [C‑454/21 P, Engie v Commission] have made it clear that Commission may not rely on principles which are not recognised in the tax laws of Member States. This fundamental rule […]
read more
No Comments
« Previous PageNext Page »

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 […]
read more
No Comments
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 […]
read more
No Comments
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 […]
read more
No Comments
27. December 2023  |   State Aid Uncovered by Phedon Nicolaides

The Consequence of the Tax Autonomy of Member States
State Aid Blogs - State Aid Uncovered photos
Introduction The favourable tax treatment of multinational companies has long been in the sights of the Commission. However, the recent judgments on Fiat [C‑885/19 P, Fiat v Commission] and Engie [C‑454/21 P, Engie v Commission] have made it clear that Commission may not rely on principles which are not recognised in the tax laws of Member States. This fundamental rule […]
read more
No Comments
21. December 2023  |   State Aid Uncovered by Phedon Nicolaides

Recovery of Incompatible Aid in an Agreement between an Airport and an Airline
State Aid Blogs - Untitled design 16
Introduction On 23 November 2023, the Court of Justice, in case C-758/21 P, Ryanair v European Commission, rejected Ryanair’s action against the judgment of the General Court in case T-448/18, Ryanair v European Commission.1 In its judgment, the General Court dismissed Ryanair’s appeal against Commission decision 2018/628. In that decision, the Commission found, among other things, that Austria had granted […]
read more
No Comments
19. December 2023  |   State Aid Uncovered by Phedon Nicolaides

Indirect Advantage
State Aid Blogs - Untitled design 30
Introduction It is an established principle in the State aid case law that Article 107(1) TFEU applies both to direct and possibly indirect aid beneficiaries. Yet, it is not always easy to identify any indirect beneficiaries. On 15 November 2023, the General Court, in case T-167/21, European Gaming and Betting Association v European Commission, faulted the latter for failing to […]
read more
No Comments
11. December 2023  |   State Aid Uncovered by Phedon Nicolaides

Member States Have Discretion to Determine their Own Tax System and Interpret its Provisions
State Aid Blogs - Untitled design 29
Introduction In the landmark cases on turnover taxes implemented by Hungary and Poland, the Court of Justice censured the European Commission for defining its own hypothetical reference tax system that was different from the relevant tax provisions in those two countries. The Court again faulted the Commission in its more recent judgments on advance tax rulings. Given the discretion of […]
read more
No Comments
« Previous PageNext Page »

30. March 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – April 2015
gavel
Got something to say about State Aid? Want to write something on our Blog? Get in touch with us at Stateaidhub[at]lexxion.eu Thursday 16/04/2015 Judgment in Case C-690/13 Trapeza Eurobank Ergasias (Court of Justice – Ninth Chamber)   Monday 20/04/2015 Hearing in Case C-357/14 P Dunamenti Erőmű v Commission (Court of Justice – Third Chamber)   Wednesday 22/04/2015 Hearing in Case T-499/12 HSH Investment Holdings Coinvest-C and […]
read more
No Comments
20. March 2015  |   Guest State Aid Blog by Emma Linklater

In Brief: Case C‑672/13, OTP Bank Nyrt v Magyar Állam, Magyar Államkincstár
otp bank logo
A quick look at the latest ruling of the CJEU from Thursday 19th March.   In Case C‑672/13 OTP Bank the CJEU responded to preliminary ruling questions from the Hungarian Fővárosi Törvényszék relating to the categorisation of an agency agreement concluded in 2008 between the the Ministry of Local Government, the State Treasury and OTP Bank on the basis of Paragraph 24(15) of […]
read more
No Comments
18. March 2015  |   Guest State Aid Blog by Emma Linklater

In Brief: AG Opinion, Case C‑39/14 – Bodenverwertungs- und -verwaltungs GmbH (BVVG), Thomas Erbs, Ursula Erbs v Landkreis Jerichower Land
green field
This note takes a look at the Opinion of AG Cruz Villalón, delivered on Tuesday 17th March (not available in English at the time of posting). In his 80 paragraph Opinion the AG proposed that the CJEU reply to the preliminary reference question from the German Bundesgerichtshof as follows:Article 107 TFEU should be interpreted to mean that a rule of […]
read more
No Comments
17. March 2015  |   Guest State Aid Blog by Lexxion Publisher

Roundup of EStAL Intensive Workshop, London
workshop
Interactive Seminar on The Role of the Market Economy Investor Principle (MEIP) | Infrastructure Funding in Compliance with State Aid Rules March 11th 2015 was a busy day for the State Aid crowd who gathered at King’s College in London for an Intensive Workshop organized by Lexxion. First of all we would like to thank all those, both speakers and participants, […]
read more
No Comments
5. March 2015  |   Guest State Aid Blog by Gherardo Carullo

Procedures for examining abnormally low tenders as a State aid tool? A note on Case C-568/13 Data Medical Service
hospital
A look at the Court’s ruling of 18th December 2014 and the use of abnormally low tenders in public service contracts as indicators of illegal State subsidies. This short note examines Case C-568/13 Data Medical Service on the award of public service contracts, which is particularly interesting from a State aid perspective. While stressing that there are no exclusions whatsoever – at a […]
read more
No Comments
4. March 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – March 2015
gavel, animal figures, euros
A look at the month ahead Got something to say about State Aid? You can get in touch with us at  Stateaidhub[at]lexxion.eu  Thursday 05/03/2015 Judgment in Case C-667/13 Banco Privado Português and Massa Insolvente do Banco Privado Português (Court of Justice – Second Chamber)   Friday 06/03/2015 Hearing in Joined Cases T-60/06 RENV II and T-62/06 RENV II Italy v Commission, Eurallumina v Commission (General Court – First Chamber, […]
read more
No Comments
26. February 2015  |   Guest State Aid Blog by Lexxion Publisher

In Brief: T-135/12 and T-385/12 France v Commission and Orange v Commission
france telecom orange logo
The General Court confirmed that France granted State aid compatible with the internal market to France Télécom, in accordance with the conditions laid down by the Commission, and dismissed the actions.   The Press Release can be read here and the rulings (in French) here.Last Thursday 26th February the General Court gave its rulings in Cases T-135/12 and T-385/12 France v Commission and Orange v Commission. In […]
read more
No Comments
16. February 2015  |   Guest State Aid Blog by Richard Craven

State aid to football clubs in Croatia?
football clubs in Croatia
GNK Dinamo Zagreb: Will the next act of the sports and State aid saga play out in the EU’s newest capital?     The spectre of EU State aid law has loomed over professional club football in Europe since the Commission’s initiation, in 2013, of in-depth investigations into five football clubs in the Netherlands (SA.33584) and seven clubs in Spain […]
read more
No Comments
13. February 2015  |   Guest State Aid Blog by Lexxion Publisher

In brief: C-37/14 Commission v France
fruit and vegetables
On Thursday 12th February the CJEU passed down its ruling in C-37/14, finding that France did not take all necessary measures to recover aid illegally granted to the fruit and vegetable sector and thereby failed to fulfil its obligations under Article 288(4) TFEU. The full ruling is available here and the press release can be accessed here. The aid in question concerned ‘contingency plans’ […]
read more
No Comments
10. February 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary and an invitation to get in touch!
gavel on a laptop
A quick look at the month ahead in the GC/CJEU and reminder about how to get in touch with your news, views and information on how to write a post: Stateaidhub[at]lexxion.de Court’s Diary As we look to the month ahead, there are several State aid cases trickling through the EU Courts to watch out for. Here’s an update from the […]
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