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

A More Comprehensive and Generous GBER

Introduction In a Communication that was published on 9 March 2023, the Commission announced extensive amendments to the GBER.[1] A 100-page annex to the Communication provided the legal text of the draft regulation that would revise Regulation 651/2014.[2] The amendments aim to: Ensure consistency between the GBER and new State aid guidelines. Bring the GBER in line with the EU […]

A Visionary XXX FIDE Congress Approaching

We’re happy to announce that Lexxion publisher has become a media partner to the FIDE Congress, one of the most distinguished events on EU law. Of particular interest for the readers of the State Aid blog and the EStAL quarterly is the second topic of the congress, dedicated to the new geopolitical dimension of the EU competition and trade policies. […]

Charging Infrastructure for Electric Vehicles

Introduction As part of the EU’s Green Deal and the transition to a greener and most sustainable economy, the European Commission’s guidelines on State aid for climate, environmental protection and energy [CEEAG] also allow public support for the construction of energy infrastructures. In a recent decision, the Commission approved a German State aid scheme [SA.104749] for high-power charging infrastructure for […]

State Aid for the Resolution of a Polish bank

Introduction Whenever a bank seeks State aid, it must be considered as “failing or likely to fail”. A failing bank must be liquidated or resolved. Resolution means that the critical functions of the bank are preserved while the rest are wound down. Critical functions are those that impact significantly the real economy such as deposits, loans to SMEs or payments. […]

Tax Advantages and Competitive Bidding

Introduction Award of contracts or sale of state assets through competitive bidding procedures or tenders are presumed to result in a market prices and to confer no advantage to the winner in the meaning of Article 107(1) TFEU. However, on 25 January 2023, the General Court ruled, in case T-666/21, Società Navigazione Siciliana v European Commission, that certain tax advantages […]

Discretion of Public Authorities and Selectivity

Introduction On 2 February 2023, the Court of justice, in case C649/20 P, Spain and Others v European Commission, clarified the extent to which public authorities can implement general measures without in practice favouring any undertaking. The exercise of administrative discretion can turn a general measure into selective. The Court made a distinction between what may be called “related” or […]

The Selectivity and Profitability of Agreements between Airports and Airlines

Introduction Selectivity is a tricky issue. Even a measure that appears not to favour or exclude any undertaking may in practice prove to be selective if its effects favour certain undertakings over others that are in a comparable situation. In order to determine whether they are comparable it necessary to examine the objective of the measure. This is what the […]

State Aid May Have an Incentive Effect Even After the Start of Work: But Would it Favour Inefficient Operators?

Introduction Perhaps the most important aspect of the compatibility of State aid with the internal market is the presence of incentive effect. That is, the aid is capable of changing the behaviour of the recipient. If it does not, then public money is wasted because it has no effect on what happens on the market anyway. In principle, in order […]

Cumulation of State Aid Granted by Different Member States

Introduction The EU Green Deal and the Climate, Environmental Protection and Energy Aid Guidelines [CEEAG] allow Member States to grant more aid, in diversity and amounts, to incentivise companies to invest in greener technologies and energy. However, when multiple Member States grant aid for the same purpose, there is a risk of overcompensation of undertakings that operate across Member States. […]

State Resources Include all the Resources that Can be Directed by the State for its own Purposes

Introduction On 12 January 2023, the Court of Justice delivered its judgment in joined cases C-702/20, DOBELES HES and C-17/21, Sabiedrisko pakalpojumu regulēšanas komisija.[1] A Latvian court requested the Court of Justice to provide a preliminary ruling on the interpretation of Article 107(1) TFEU, Article 108(3) TFEU, Regulation 1407/2013 on de minimis aid and of the procedural Regulation 2015/1589. The […]

Cumulation of State Aid Granted by Different Member States

Introduction The EU Green Deal and the Climate, Environmental Protection and Energy Aid Guidelines [CEEAG] allow Member States to grant more aid, in diversity and amounts, to incentivise companies to invest in greener technologies and energy. However, when multiple Member States grant aid for the same purpose, there is a risk of overcompensation of undertakings that operate across Member States. […]

State Resources Include all the Resources that Can be Directed by the State for its own Purposes

Introduction On 12 January 2023, the Court of Justice delivered its judgment in joined cases C-702/20, DOBELES HES and C-17/21, Sabiedrisko pakalpojumu regulēšanas komisija.[1] A Latvian court requested the Court of Justice to provide a preliminary ruling on the interpretation of Article 107(1) TFEU, Article 108(3) TFEU, Regulation 1407/2013 on de minimis aid and of the procedural Regulation 2015/1589. The […]

The Private Acquirer Test: An Illuminating and also Puzzling Judgment

A public authority may act as a market operator and acquire services through a private third party without conferring an advantage to the provider of those services. Introduction When a public authority buys a service and pays the market price it does not confer an advantage to the seller in the meaning of Article 107(1) TFEU. Even if it pursues […]

The Value of Land

Different valuation methods do not confer a selective advantage if they generate similar results. Introduction Land or immovable property has no intrinsic value. Its value depends on how the land or property is used. In turn, how it is used is determined by several factors such as its location, and the applicable zoning rules. A plot of land in an […]

The Link between State Aid and Environmental Provisions of EU Law

Introduction It is an established principle in the case law that the Commission may not authorise State aid that infringes other provisions of EU law, both primary and secondary. Now consider the following case. A Member State notifies to the Commission regional investment aid to support the construction of a mega factory. The factory will produce its own energy and […]

State Guarantees for Undertakings in Difficulty

In order to detect State aid in a state guarantee, it is necessary to carry out a search to identify the market rate, if it exists. There is no general presumption that an undertaking in difficulty cannot obtain a guarantee from the market. It is necessary to consider the risk of default. The calculation of the amount of aid must […]

Compliance with State Aid Guidelines

For aid to be declared compatible with the internal market, all of the formal and substantive provisions of the relevant guidelines must be satisfied. State aid is granted the moment the right to a selective advantage is conferred, even if the actual benefit materialises at a future point in time. Introduction On 26 October 2022, the General Court reiterated, in […]

No Effect on Trade

A public measure of purely local character and which does not induce cross-border movement of investors or clients is unlikely to affect trade between Member States. Introduction It is rare to find a judgment that confirms that a particular public measure is not liable to affect trade between Member States. The General Court did so in its judgment of 19 […]

Natural Disasters and State Aid

Compensation for damage suffered by undertakings as a result of a natural disaster constitutes State aid. The compensation is compatible with the internal market only if, first, there is a causal relationship between the natural disaster and the damage and, second, the amount of compensation does not exceed the amount of the damage. Introduction Financial assistance in the form of […]

Research Organisations, their Primary Objectives and their Shareholders

A research organisation is not required to reinvest any revenue it may generate into its non-economic activities. The fact that the shareholders of a research entity are profit seeking has no decisive impact on its classification as a research organisation. Introduction As governments push universities to engage in more collaborative research with industry, the question increasingly arises where to draw […]

Luxembourg, Amazon, and the State aid connection

The Commission’s opening decision: What should we make of Amazon’s ‘advance pricing agreement’ (APA) and its alleged (non-) compliance with the ‘arm’s length principle’ (ALP)? In early October 2014, the European Commission notified Luxembourg of its decision to open a state aid investigation in relation to the tax treatment of the Amazon group by the Luxembourgish tax authorities. This opening […]

In Brief: Case C-518/13 Eventech and Case T-1/12 France v Commission

A quick look at the two new rulings this week. This post gives a preliminary overview of the two new judgments this week (more in depth posts with analysis will be online soon!): On Wednesday 14th January the CJEU passed its ruling in the hotly awaited Eventech case (Case C-518/13), while a day later the General Court gave its word on […]

In Brief: Case T-58/13, Club Hotel Loutraki AE and Others v Commission (judgment of 08.01.2015)

On Thursday the 8th January the GC dismissed all four pleas in the action for annulment of the Commission Decision finding that the exclusive rights granted to operate 35 000 Video Lottery Terminals and 13 games of chance were not State aid.   The case is can be accessed here (English and French versions currently available) and the press release here.Background to the […]

State aid in 2015 – Court’s diary and events

Wishing all our readers and contributors a very happy 2015, this post takes look at the Court’s diary for January and some events in coming months. This is a quick post firstly to thank everybody who has been part of the StateAidHub for their support so far and to wish all our readers an excellent year ahead. If you are interested […]

Two Europes and a single SAM

Keeping the flock together: A response to discussions on the GBER and SAM at ESTALI Vienna.   Maria Ortiz is a technician for the Valencian Institute of Business Competitiveness (IVACE). The views expressed in this post are purely those of the author and may not in any circumstances be regarded as stating an official position of IVACE. Two weeks ago, the European […]

In Brief: T‑57/11 Castelnou Energía v Commission (judgment of 03.12.2014)

On Wednesday 3rd December the GC found Spanish aid granted to coal power plants to secure supply to be compatible State aid (judgment not yet available in English). After a busy day at the EStALI Autumn Workshop yesterday (we’ll give you all the hubbub from that as well as the conference later today), the following is a preliminary post on […]

Driving in the wrong direction? The opening decision in Fiat

What are we to make of the Commission’s decision to open an in-depth investigation into the tax treatment of Fiat Finance and Trade (FFT) by Luxembourg? In late September 2014, the Commission published its decision to open an in-depth State aid investigation in relation to the tax treatment of Fiat Finance and Trade (FFT) by Luxembourg.This investigation is part of the recent […]

Case T-512/11 Ryanair : Commission’s ATT Ireland Decision Partly Annulled (ATT Act I)

On Tuesday (25.11.2014) the General Court delighted the StateAidHub team by dishing out a shiny new ruling just in time for our launch date. Here’s a quick first look at the ruling. This post takes a preliminary look at Case T-512/11 Ryanair Ltd v Commission.This is only one of the appeals being brought against the Commission’s dabblings with the Irish Air […]

State Aid for Nuclear Power: No Thanks! Maybe? Yes Please!

The Commission’s decision on the Hinkley Point C nuclear power station of 8th October 2014 and what this might mean for the approach to nuclear energy… In 2014, the European Commission adopted new Guidelines on State aid for energy and the environment. These were followed by the adoption of a new General Block Exemption Regulation that also included measures relating to energy […]

Tax Rulings and State Aid: Now or Never

This comment looks at the Commission’s decisions to open in-depth investigations into the tax treatment of Apple, Starbucks and Fiat Finance and Trade by Ireland, The Netherlands and Luxembourg.   The European Commission has recently opened three in-depth investigations under Article 108(2) TFEU concerning tax rulings in Ireland, The Netherlands and Luxembourg with regard to the corporate income tax to be paid by Apple, Starbucks […]

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 stratieva@lexxion.eu.

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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