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

State Aid Uncovered ×

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 […]

Calculation of the Funding Gap of an Infrastructure Project that May also Benefit from Future Public Funding

Introduction The Commission recently approved State aid granted by Czech Republic for the construction of a multifunctional arena in Brno, with a capacity of 13300 visitors [see SA.58891]. The aid measure was unusual because it foresaw possible future public funding to cover certain financial costs in case the net operating revenue would not be enough. However, the Commission approved possible […]

State Aid Uncovered ×

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 […]

Calculation of the Funding Gap of an Infrastructure Project that May also Benefit from Future Public Funding

Introduction The Commission recently approved State aid granted by Czech Republic for the construction of a multifunctional arena in Brno, with a capacity of 13300 visitors [see SA.58891]. The aid measure was unusual because it foresaw possible future public funding to cover certain financial costs in case the net operating revenue would not be enough. However, the Commission approved possible […]

State Aid Uncovered ×

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 […]

Calculation of the Funding Gap of an Infrastructure Project that May also Benefit from Future Public Funding

Introduction The Commission recently approved State aid granted by Czech Republic for the construction of a multifunctional arena in Brno, with a capacity of 13300 visitors [see SA.58891]. The aid measure was unusual because it foresaw possible future public funding to cover certain financial costs in case the net operating revenue would not be enough. However, the Commission approved possible […]

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