State Aid Blogs Archiv

- Existence of advantage ×

1. November 2016 | State Aid Uncovered von Phedon Nicolaides

Turnover Taxes Can be Incompatible with the Internal Market

Progressive taxes levied on turnover can provide State aid that is incompatible with the internal market. Flat turnover taxes are proportional and therefore likely to be free of State aid. Introduction Hungary wanted to levy two types of turnover taxes whose purpose was to protect health. The first tax was levied on tobacco products.[1] The Commission found, in decision 2016/1846, […]

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2. September 2015 | State Aid Uncovered von Phedon Nicolaides

When Do Public Pronouncements Confer an Advantage to Undertakings?

Public pronouncements can confer an advantage if they are sufficiently precise and clearly commit a public authority to support an undertaking. Introduction[1] Politicians often claim that they would never allow important national companies to go bust. Occasionally, such claims appear to sway market sentiment in favour of those companies. Private investors are heartened by the avowed support of the […]

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28. Juli 2015 | State Aid Uncovered von Phedon Nicolaides

The Market Economy Investor Principle Applies also to Avoidance of Losses

A public authority can act as a private investor in paying to avoid costly contractual clauses. A public authority can act as a private investor in paying to bring forward future revenue. Introduction When a market operator invests to make profit, its underlying logic is the same as when it pays to avoid losses. In both cases it is […]

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