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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22. August 2023  |   by Phedon Nicolaides

A Large Investment Project (Part II)
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Introduction According to the latest edition of the State aid Scoreboard, in 2021, Member States granted EUR 14 billion of aid to support regional development. That amount corresponded to about 10% of the total non-crisis aid. What is perhaps more interesting is that close to EUR 12.5 billion or 90% of the total regional aid was granted on the basis […]
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14. August 2023  |   State Aid Uncovered by Phedon Nicolaides

A Large Investment Project (Part I)
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Introduction According to the latest edition of the State aid Scoreboard, in 2021, Member States granted EUR 14 billion of aid to support regional development. That amount corresponded to about 10% of the total non-crisis aid. What is perhaps more interesting is that close to EUR 12.5 billion or 90% of the total regional aid was granted on the basis […]
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7. August 2023  |   State Aid Uncovered by Phedon Nicolaides

Decarbonisation of Steel Production
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Introduction Many, perhaps the majority, of notifications on the basis of the Guidelines on Climate, Environmental Protection and Energy [CEEAG] concern decarbonisation of production processes. In this context, large amounts of State aid have been funnelled to the decarbonisation of steel production. ArcelorMittal has been a major beneficiary. In February 2023, Spain granted EUR 460 million to support ArcelorMittal to […]
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1. August 2023  |   by Phedon Nicolaides

Profitability as a Criterion of the Compatibility of State Aid with the Internal Market
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Introduction When the state has a realistic prospect of making profit, its financial transactions with third parties do not constitute State aid. The absence of profit is a strong indicator of the presence of State aid but not necessarily its compatibility with the internal market. For State aid to be compatible with the internal market it must, among other things, […]
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25. July 2023  |   by Phedon Nicolaides

I) State Aid Guidelines & II) Repayment of State Aid
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Introduction This article reviews two judgments of the Court of Justice: On the Greenhouse Gas Emissions Guidelines and on a structural funds regulation. No Member State has ever succeeded in challenging the Commission’s State aid guidelines. In the first judgment, a group of undertakings tried to dispute the legality of a set of guidelines. Not surprisingly, they failed. The second […]
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18. July 2023  |   State Aid Uncovered by Phedon Nicolaides

The Non-economic Nature of a Public Health System and Regional Development
State Aid Blogs - State Aid Uncovered SM posts 44
Introduction This article reviews two judgments: On a public health system and on regional development through capital injections. I. Public health system On 27 April 2023, the Court of Justice rendered its judgment in case C-492/21 P, Casa Regina Apostolorum della Pia Società delle Figlie di San Paolo v European Commission.[1] Casa Regina Apostolorum della Pia Società delle Figlie di […]
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10. July 2023  |   State Aid Uncovered by Phedon Nicolaides

Regional Operating Aid
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Introduction On 21 June 2023, the General Court delivered its judgment in case T-131/21, Região Autónoma da Madeira v European Commission.[1] It rejected the action of the Autonomous Region of Madeira [ARM] by which it sought the annulment of Commission decision 2022/1414 on aid scheme implemented by Portugal for the Madeira Free Zone or Zona Franca da Madeira [ZFM]. The […]
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3. July 2023  |   State Aid Uncovered by Phedon Nicolaides

Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART II)
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Introduction When public authorities buy goods and services for themselves, they have to pay a market price, otherwise they confer an abnormal advantage to the sellers. On 14 June 2023, the General Court, in case T‑79/21, Ryanair & Airport Marketing Services v European Commission, ruled that public authorities still confer an abnormal advantage by buying good and services that they […]
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27. June 2023  |   State Aid Uncovered by Phedon Nicolaides

Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART I)
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Introduction When public authorities buy goods and services for themselves, they have to pay a market price, otherwise they confer an abnormal advantage to the sellers. On 14 June 2023, the General Court, in case T-79/21, Ryanair & Airport Marketing Services v European Commission, ruled that public authorities still confer an abnormal advantage by buying good and services that they […]
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20. June 2023  |   State Aid Uncovered by Phedon Nicolaides

Regulatory Measures Are not State aid & Trade Unions Are not “Interested Party”
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Introduction This article reviews two recent judgments dealing with the concept of state resources and the meaning of “interested party”, respectively. State resources On 8 June 2023, the Court of Justice clarified, by its judgment in case C-50/21, Prestige and Limousine SL, that purely regulatory measures may confer and advantage without, however, granting State aid.1 The Court was responding to […]
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27. June 2023  |   State Aid Uncovered by Phedon Nicolaides

Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART I)
State Aid Blogs - Untitled design 3 1
Introduction When public authorities buy goods and services for themselves, they have to pay a market price, otherwise they confer an abnormal advantage to the sellers. On 14 June 2023, the General Court, in case T-79/21, Ryanair & Airport Marketing Services v European Commission, ruled that public authorities still confer an abnormal advantage by buying good and services that they […]
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20. June 2023  |   State Aid Uncovered by Phedon Nicolaides

Regulatory Measures Are not State aid & Trade Unions Are not “Interested Party”
State Aid Blogs - Untitled design 3
Introduction This article reviews two recent judgments dealing with the concept of state resources and the meaning of “interested party”, respectively. State resources On 8 June 2023, the Court of Justice clarified, by its judgment in case C-50/21, Prestige and Limousine SL, that purely regulatory measures may confer and advantage without, however, granting State aid.1 The Court was responding to […]
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13. June 2023  |   State Aid Uncovered by Phedon Nicolaides

How the Infringement of Non-State aid Rules Can Affect the Compatibility of State aid
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Introduction  It is now well-established that if a State aid measure is inherently or indissolubly linked to a an infringement of EU law outside the field of State aid it cannot be found to be compatible with the internal market.  As a result of the judgment of the General Court on 24 May 2023, in case T-268/21, Ryanair v European […]
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6. June 2023  |   State Aid Uncovered by Phedon Nicolaides

A First Case of “Significant Market Power”
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Introduction On the same day that the General Court ruled on the recapitalisation of SAS, it also ruled on the recapitalisation of Lufthansa in case T-34/21, Ryanair v European Commission.1 In the latter case, Ryanair sought the annulment of Commission decision SA.57153 of June 2020 by which the Commission approved injection of capital in Deutsche Lufthansa [DLH] of the amount […]
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30. May 2023  |   State Aid Uncovered by Phedon Nicolaides

The 2020 Temporary State aid Framework and Recapitalisation of Undertakings
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Introduction Ryanair has challenged many Commission decisions authorising State aid for its rivals. In 2021 and 2022, the General Court delivered 12 judgments concerning covid-19-related aid granted to other airlines. Of those 12 judgments, Ryanair temporarily won only three. Its wins were transient because the General Court suspended the annulment of the relevant Commission decisions, on the grounds that the […]
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23. May 2023  |   State Aid Uncovered by Phedon Nicolaides

The Temporary Framework Allows Member States to Grant Aid only to SMEs 
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Introduction  Although discrimination is in general prohibited in the EU, the fact remains that in the field of State aid Member States may grant State aid only to certain companies and may also decide how much aid to grant.  That the granting of State aid relies solely on the discretion of Member States has recently been re-confirmed by the General […]
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16. May 2023  |   State Aid Uncovered by Phedon Nicolaides

Support for the Decarbonisation of the Electricity Sector through Storage Capacity
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Introduction Romania notified a scheme to support investment in large-scale electricity storage. The Commission approved it in decision SA.102761.[1] The scheme was part of the national Recovery and Resilience Plan [RRP] of Romania and was co-financed by the EU’s Recovery and Resilience Facility. By supporting investment in electricity storage, Romania aimed to reduce carbon emissions generated by the energy sector, […]
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9. May 2023  |   State Aid Uncovered by Phedon Nicolaides

Development of Affordable Housing
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Introduction The provision of social housing can be designated as a service of general economic interest and can be publicly funded under the Commission decision 2021/21. Member States have to show that there is a real social need and limit access to social housing to those persons who cannot afford what the market provides; i.e. low-income or vulnerable persons such […]
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2. May 2023  |   State Aid Uncovered by Phedon Nicolaides

State aid Scoreboard, 2022
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Introduction On 24 April 2023, the Commission released the 2022 version of the State aid Scoreboard which this year runs to a record 226 pages.[1] It covers the State aid that was granted in 2021 and contains information on both covid-19 measures and non-pandemic aid. Covid-19 related aid reached EUR 191 billion, or 57% of total aid expenditure. Non-crisis aid […]
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25. April 2023  |   State Aid Uncovered by Phedon Nicolaides

German Risk Finance
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Introduction Relatively few risk finance measures are notified to the Commission as Member States use Articles 21 and 22 of the GBER to support investments in SMEs and start-ups. However, the GBER excludes from its scope tax incentives for investments by undertakings. Tax incentives are possible only for investments by private investors. For this reason, Germany recently notified an aid […]
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27. January 2015  |   Guest State Aid Blog by Erika Szyszczak

Black Cabs in London Retain ‘Exclusive’ Rights to Drive in Bus Lanes
black cab
A detailed note on Case C-518/13 The Queen, on the application of Eventech Ltd v The Parking Adjudicator (judgment of 14th January 2015) An enduring feature of EU law is that it may be used in an opportunist manner in some of the lowest tribunals in the EU to create challenges to national rules and policies. This was how the Eventech case arose. […]
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22. January 2015  |   Guest State Aid Blog by Dimitrios Kyriazis

Luxembourg, Amazon, and the State aid connection
amazon package
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 […]
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16. January 2015  |   Guest State Aid Blog by Emma Linklater

In Brief: Case C-518/13 Eventech and Case T-1/12 France v Commission
Lady Justice
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 […]
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9. January 2015  |   Guest State Aid Blog by Emma Linklater

In Brief: Case T-58/13, Club Hotel Loutraki AE and Others v Commission (judgment of 08.01.2015)
hotel pool
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 […]
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5. January 2015  |   Guest State Aid Blog by Emma Linklater

State aid in 2015 – Court’s diary and events
gavel
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 […]
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23. December 2014  |   Guest State Aid Blog by María Ortiz Vilela

Two Europes and a single SAM
sheeps
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 […]
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5. December 2014  |   Guest State Aid Blog by Emma Linklater

In Brief: T‑57/11 Castelnou Energía v Commission (judgment of 03.12.2014)
burning coal
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 […]
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28. November 2014  |   Guest State Aid Blog by Dimitrios Kyriazis

Driving in the wrong direction? The opening decision in Fiat
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 […]
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28. November 2014  |   Guest State Aid Blog by Emma Linklater

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 […]
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28. November 2014  |   Guest State Aid Blog by Erika Szyszczak

State Aid for Nuclear Power: No Thanks! Maybe? Yes Please!
State Aid Blogs - workers in nuclear plant
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 […]
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