Europäisches Beihilfenrecht Blog

State Aid Uncovered Blog

In Lexxions Blog „State Aid Uncovered” veröffentlicht Prof. Phedon Nicolaides wöchentlich kritische Analysen zu den neuesten Urteilen und Entscheidungen zu staatlichen Beihilfen. Jeder Beitrag stellt die wichtigsten Punkte eines Gerichtsurteils oder einer EU-Kommissionsentscheidung vor, ordnet sie in den Kontext ähnlicher Rechtsprechung oder Praxis ein, bewertet die zugrundeliegende Argumentation und zeigt etwaige Ungereimtheiten oder Widersprüche auf.

In loser Folge werden auf diesem Blog auch Gastbeiträge von anderen Experten für staatliche Beihilfen veröffentlicht, welche die Inhalte der Blogbeiträge ergänzen.

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Professor at Maastricht University; Professor at University of Nicosia, and Academic Director at Lexxion Training

i) Compensation Can Be State Aid ii) Failure to Act

Introduction This article reviews two judgments concerning a claim that compensation does not constitute State aid and a complaint that the Commission had failed to act, respectively. The latter case is particularly interesting because it is probably the only judgment in the past decade or two that the Court of Justice has actually upheld a claim that the Commission breached […]

Public Funding of Healthcare Services Based on the Principle of Social Solidarity Is not State Aid

Introduction In June 2016, the Commission received a complaint from the Medical Chamber of Slovenia – a professional organisation of private medical doctors and dentists practicing in Slovenia – concerning alleged State aid granted by Slovenia to public hospitals and public healthcare centres. With decision SA.45844, the Commission recently decided that the public funding of public hospitals and healthcare centres […]

State Aid to Support Production of Penicillin in the EU

Introduction The Commission’s block exemption regulations and the guidelines do not cover exhaustively State aid for all conceivable policy objectives. For example, there are no specific rules on investment subsidies for large enterprises in non-assisted regions. This does not mean that Member States may not grant State aid to a large company to manufacture a product they consider important. Rather, […]

State Aid to Support “Applied Research” in Solid-State Batteries

Introduction France notified a measure to grant State aid to ProLogium for the implementation of the Promotheus R&D project which concerned the development of solid-state batteries [SSB] for electric vehicles. ProLogium is a large enterprise with 758 employees. The Commission approved the measure in decision SA.106740.[1] The aid measure has several unusual features. First, ProLogium committed to disseminate the scientific […]

An Unusual SGEI

Introduction Member States are free to determine what the regard as a service of general economic interest [SGEI]. The Commission may only check whether the definition is free of manifest error and that any compensation that is provided conforms with the conditions laid down in the 2012 SGEI package. Member States commit a manifest error when they designate as SGEI […]

The Territorial Tax Systems May also Tax Profits Diverted Abroad

Introduction Taxes are burdens on undertakings. They cannot be State aid. However, tax exemptions or reductions can be State aid if they cannot be objectively justified. When a tax measure is in the form of a reduction or exemption, it is relatively easy to establish its selectivity in the meaning of Article 107(1) TFEU. However, when a tax is levied […]

European Court of Auditors, Report on the Implementation of the EU Budget for the 2023 Financial Year, 10 October 2024

State Aid Blogs - State Aid Uncovered photos 10
The annual report on the 2023 EU budget by the European Court of Auditors finds that in the field of State aid national authorities wrongly supported ineligible costs. Errors in public procurement and State aid were the largest source of irregularities. Main findings concerning public procurement and State aid “The risk of error is high for expenditure subject to complex […]

Revenue from a Compulsory Charge Is a State Resource

State Aid Blogs - State Aid Uncovered photos 14
Introduction On 26 September 2024, the Court of Justice [CJEU] delivered four judgments in four related cases: C-790/21 P, Covestro Deutschland v Commission C-792/21 P, AZ v Commission C-794/21 P, Germany v Commission C-795/21 P, WEPA Hygieneprodukte v Commission All cases concerned appeals against the corresponding judgments of the General Court by which it dismissed the actions for annulment of […]

Who is “Interested Party” that Can Challenge a Commission Decision and when Must the Commission Open the Formal Investigation Procedure

Introduction On 5 September 2024, the Court of Justice of the EU [CJEU] delivered two judgments on the two most frequent procedural issues on State aid: Who has standing to challenge a Commission decision and when the Commission is obliged to initiate the formal investigation procedure. These two issues are closely connected. Those whose interests are harmed by State aid […]

State Aid to the Operator of a Legal Monopoly

Introduction In some Member States, the provision of potable water to households is a “closed” sector. This means that public funding of the operations of the water provider does not constitute State aid. However, according to the case law of the Court of Justice, for a sector to be considered closed to trade and competition it is not sufficient that […]

i) Compensation Can Be State Aid ii) Failure to Act

Introduction This article reviews two judgments concerning a claim that compensation does not constitute State aid and a complaint that the Commission had failed to act, respectively. The latter case is particularly interesting because it is probably the only judgment in the past decade or two that the Court of Justice has actually upheld a claim that the Commission breached […]

Public Funding of Healthcare Services Based on the Principle of Social Solidarity Is not State Aid

Introduction In June 2016, the Commission received a complaint from the Medical Chamber of Slovenia – a professional organisation of private medical doctors and dentists practicing in Slovenia – concerning alleged State aid granted by Slovenia to public hospitals and public healthcare centres. With decision SA.45844, the Commission recently decided that the public funding of public hospitals and healthcare centres […]

State Aid to Support Production of Penicillin in the EU

Introduction The Commission’s block exemption regulations and the guidelines do not cover exhaustively State aid for all conceivable policy objectives. For example, there are no specific rules on investment subsidies for large enterprises in non-assisted regions. This does not mean that Member States may not grant State aid to a large company to manufacture a product they consider important. Rather, […]

State Aid to Support “Applied Research” in Solid-State Batteries

Introduction France notified a measure to grant State aid to ProLogium for the implementation of the Promotheus R&D project which concerned the development of solid-state batteries [SSB] for electric vehicles. ProLogium is a large enterprise with 758 employees. The Commission approved the measure in decision SA.106740.[1] The aid measure has several unusual features. First, ProLogium committed to disseminate the scientific […]

An Unusual SGEI

Introduction Member States are free to determine what the regard as a service of general economic interest [SGEI]. The Commission may only check whether the definition is free of manifest error and that any compensation that is provided conforms with the conditions laid down in the 2012 SGEI package. Member States commit a manifest error when they designate as SGEI […]

The Territorial Tax Systems May also Tax Profits Diverted Abroad

Introduction Taxes are burdens on undertakings. They cannot be State aid. However, tax exemptions or reductions can be State aid if they cannot be objectively justified. When a tax measure is in the form of a reduction or exemption, it is relatively easy to establish its selectivity in the meaning of Article 107(1) TFEU. However, when a tax is levied […]

European Court of Auditors, Report on the Implementation of the EU Budget for the 2023 Financial Year, 10 October 2024

State Aid Blogs - State Aid Uncovered photos 10
The annual report on the 2023 EU budget by the European Court of Auditors finds that in the field of State aid national authorities wrongly supported ineligible costs. Errors in public procurement and State aid were the largest source of irregularities. Main findings concerning public procurement and State aid “The risk of error is high for expenditure subject to complex […]

Revenue from a Compulsory Charge Is a State Resource

State Aid Blogs - State Aid Uncovered photos 14
Introduction On 26 September 2024, the Court of Justice [CJEU] delivered four judgments in four related cases: C-790/21 P, Covestro Deutschland v Commission C-792/21 P, AZ v Commission C-794/21 P, Germany v Commission C-795/21 P, WEPA Hygieneprodukte v Commission All cases concerned appeals against the corresponding judgments of the General Court by which it dismissed the actions for annulment of […]

Who is “Interested Party” that Can Challenge a Commission Decision and when Must the Commission Open the Formal Investigation Procedure

Introduction On 5 September 2024, the Court of Justice of the EU [CJEU] delivered two judgments on the two most frequent procedural issues on State aid: Who has standing to challenge a Commission decision and when the Commission is obliged to initiate the formal investigation procedure. These two issues are closely connected. Those whose interests are harmed by State aid […]

State Aid to the Operator of a Legal Monopoly

Introduction In some Member States, the provision of potable water to households is a “closed” sector. This means that public funding of the operations of the water provider does not constitute State aid. However, according to the case law of the Court of Justice, for a sector to be considered closed to trade and competition it is not sufficient that […]

The Cumulation of State Aid Granted by Different Member States — The Landwärme Case

Guest State Aid Blog by Professor Leigh Hancher, Nicole Robins and Dr Philipp Schliffke[1] 1 Introduction The Renewable Energy Directive 2018/2001 (‘RED II’) states that ‘the promotion of the production and use of biomethane, its injection into a natural gas grid and cross-border trade create a need to ensure proper accounting of renewable energy as well as avoiding double incentives […]

The Interplay of R&D Works and Formal Incentive Effect Rules

The Interplay of R&D Works and Formal Incentive Effect Rules Michał Bernat.1 The issue mentioned in the title appears at first sight rather uncontroversial, as it is instinctively understood that research and development (R&D) works do not form part of an investment towards which they are directed, but this brief note raises certain issues arising in that respect which have […]

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. […]

Further Views on Editorial by Andreas Bartosch (EStAL 1/2022, 1)

Reading the Editorial by Andreas Bartosch (EStAL 1/2022, 1), I feel tempted – not to worship Satan or the GBER, but to add some more colours to the picture drawn up by the esteemed colleague. It is true that the Block Exemption Regulations were intended to save the Commission Services from „lästigem Alltagsgerümpel“ (“boring routine rubbish”, as Andreas Bartosch dubbed […]

How to approach the risk of carbon lock-in effects in state aid analysis?

A recent FSR Debate[1] held on 4 May examined the key question of how policymakers and regulators can avoid carbon lock-in jeopardising the attainment of the European Union’s ambitious energy and climate targets. Carbon lock-in refers to situations where emissions-intensive energy assets continue to be used even when low-carbon and socially more beneficial assets are available.  This is a controversial […]

The European Commission’s Opening Decision in the German Lignite Phase-Out Case – Part II.

The article is based on a legal opinion, that was given to LEAG. Doubts regarding the existence of an advantage – continued Compensation amounts based on a MEO settlement agreement An essential component of the compensation covering the full scope of any damages caused to the operators affected by the early closure is also the avoidance of legal and factual […]

The European Commission’s Opening Decision in the German Lignite Phase-Out Case – Part I.

The article is based on a legal opinion, that was given to LEAG. Introduction The European Green Deal envisages a clean and decarbonised energy sector with net-zero greenhouse gas emissions by 2050.[1] These ambitious objectives entrust the Member States with enormous tasks in connection with the transformation process, which must always be designed in a proportionate manner. For this purpose, […]

Pre- Notifications, Preliminary Investigations and the Rights of Third Parties in State Aid Procedures – Beware of the Black Hole!

The persistently cautious approach of the Court of Justice of the European Union (CJEU) to recognizing any really meaningful rights for third parties in State aid proceedings before the European Commission as well as in judicial proceedings is well-known and frequently criticized. With the recent adoption of the new Climate Law at the end of June and the official launch […]

Public Support to Ultrafast Networks in the Italian NRRP

As part of the investments to support the digitisation, innovation and competitiveness of the production system[1], the Italian Recovery and Resilience Plan (NRRP) has allocated €6.71 billion for interventions in favor of ultra-fast networks (ultra-broadband and 5G)[2]. The amount will be deployed by 2026 to achieve the objectives defined in the “Italian Strategy for ultra-broadband”[3] in accordance with the EU […]

The UK’s New Subsidy Control Bill: Targeting a Faster, More Permissive Regime Than EU State Aid Rules

The long awaited Subsidy Control Bill has been published by the UK Government with bold promises that it will “create a new system for subsidies that can enable key domestic priorities, such as levelling up economic growth across the UK and driving our green industrial revolution“.  In this article we identify the main changes immediately emerging from the draft legislation, […]

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