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.

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

5. Juli 2022 | State Aid Uncovered von Phedon Nicolaides

Why Grant a Loan to an Undertaking in Difficulty?

State Aid Blogs - State Aid Uncovered SM posts 14

State Aid Blogs - State Aid Uncovered SM posts 14

When a market operator invests in an undertaking in difficulty it also considers the possibility of restructuring, sale or closure. Introduction The answer to the question posed in the title of this article is “because the loan enables the undertaking to become viable again and repay the loan with interest”. It is now well established in the case law that […]

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30. Juni 2022 | Guest State Aid Blog von Hans Arno Petzold

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

State Aid Blogs - Guest posts 3

State Aid Blogs - Guest posts 3

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 […]

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28. Juni 2022 | State Aid Uncovered von Phedon Nicolaides

Individual Aid to Counter the Effects of Serious Economic Disturbance Is Legally Possible, but Is it Appropriate?

State Aid Blogs - State Aid Uncovered SM posts 13

Individual aid need not be capable itself to remedy serious economic disturbance in the economy of a Member State. It is sufficient that it contributes to that effect. Introduction On 22 June 2022, in case T‑657/20, Ryanair v European Commission, the General Court confirmed once more that Member States have a right to grant State aid to the undertakings of […]

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21. Juni 2022 | State Aid Uncovered von Phedon Nicolaides

The Date on which State Aid is Deemed to be Granted Is not necessarily the Date on which the Actual Benefit Materialises

State Aid Blogs - State Aid Uncovered SM posts 12

State aid is deemed to be granted even if the benefit cannot be quantified in advance and even if state resources are transferred at a future point in time. Introduction The precise date on which State aid is granted can be important such as, for example, when calculating the present value of aid granted in tranches at different points in […]

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14. Juni 2022 | State Aid Uncovered von Phedon Nicolaides

Territoriality and the Tax Treatment of Intra-group Transactions

State Aid Blogs - State Aid Uncovered SM posts 11

A special tax rule can constitute the reference or normal system of taxation if it is “severable” from other tax rules and has its own legal logic. Introduction The application of State aid rules to the tax treatment of transactions between companies that belong to the same multinational group is contentious. During the past three years or so, the Commission […]

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7. Juni 2022 | State Aid Uncovered von Phedon Nicolaides

A Rare Commission Decision on SGEI Interpreting Decision 2012/21

State Aid Blogs - State Aid Uncovered SM posts 10

State Aid Blogs - State Aid Uncovered SM posts 10

A non-profit provider of free services which are in competition with similar services on the market is an undertaking. Introduction The decentralisation of State aid policy of the past decade has made it easier for the Member States to achieve their public policy objectives. By using blog exemption regulations and decisions, they can grant State aid faster, without having to […]

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31. Mai 2022 | State Aid Uncovered von Phedon Nicolaides

State Aid and Anti-Competitive Practices

State Aid Blogs - State Aid Uncovered SM posts 9

State Aid Blogs - State Aid Uncovered SM posts 9

State aid to undertakings that engage in anti-competitive practices is incompatible with the internal market. Introduction For State aid to be compatible with the internal market, it may not infringe any other provision of the Treaty or secondary legislation. Occasionally, the Commission finds State aid measures to be incompatible with the internal market because they contain clauses that exclude foreign […]

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27. Mai 2022 | Guest State Aid Blog von Lexxion Publisher

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

State Aid Blogs - State Aid Uncovered SM posts 8

State Aid Blogs - State Aid Uncovered SM posts 8

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 […]

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24. Mai 2022 | State Aid Uncovered von Phedon Nicolaides

Another Case of Rescue Aid to an Airline

State Aid Blogs - State Aid Uncovered SM posts 6

State Aid Blogs - State Aid Uncovered SM posts 6

An undertaking does not have to be nationally “important” in order to qualify for rescue aid. Introduction The pandemic has been hard on airlines. For some of them, however, the pandemic simply exacerbated their already existing problems. On 18 May 2022, in case T‑577/20, Ryanair v European Commission, the General Court had to examine the case of State aid to […]

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17. Mai 2022 | von Phedon Nicolaides

Rescue Aid

State Aid Blogs - State Aid Uncovered SM posts 1

State Aid Blogs - State Aid Uncovered SM posts 1

Member State must demonstrate that rescue or restructuring aid aims to prevent social hardship or address market failure. The Temporary Framework is coming to an end The European Commission announced on 12 May 2022 that the Temporary Framework will be abolished on 30 June 2022, with the exception of the two types of support that were inserted in the Temporary […]

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22. März 2022 | State Aid Uncovered von Phedon Nicolaides

I. Vouchers for SMEs II. Funding of Aid with Revenue from Levies Imposed on the Aid Beneficiaries

State Aid Blogs - State Aid Uncovered SM posts 4

State Aid Blogs - State Aid Uncovered SM posts 4

State aid rules apply both to direct and indirect beneficiaries of aid. Introduction This week’s article reviews a Commission decision and a judgment of the Court of Justice. The Commission decision concerns Italian vouchers for SMEs to pay for the use of fast broadband services. The judgment deals with a German measure supporting milk quality tests. In both cases an […]

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15. März 2022 | State Aid Uncovered von Phedon Nicolaides

Another Altmark Compliant Case!

State Aid Blogs - State Aid Uncovered SM posts 2

State Aid Blogs - State Aid Uncovered SM posts 2

Any non-SGEI obligation attached to a public service contract may not raise the cost of the service above the level of the “least cost to the community”. Introduction It is very rare for measures of compensation for public service obligations to be found by the European Commission to be compliant with the Altmark conditions. Nonetheless, in the past two years […]

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9. März 2022 | State Aid Uncovered von Phedon Nicolaides

The Concept of “Undertaking in Difficulty” and Evidential Requirements

State Aid Blogs - State Aid Uncovered SM posts 1

State Aid Blogs - State Aid Uncovered SM posts 1

The “subscribed share capital” of a company includes the capital that is already paid and any future amount that shareholders have irrevocably committed to pay. Introduction Undertakings in difficulty may not receive any kind of aid except aid to compensate for damage caused by a natural disaster or exceptional occurrence and, under strict conditions, rescue and/or restructuring aid. In most […]

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1. März 2022 | State Aid Uncovered von Phedon Nicolaides

Security of Energy Supply

State Aid Blogs - State Aid Uncovered SM posts

State Aid Blogs - State Aid Uncovered SM posts

Guaranteed supply of electricity at fixed prices to a state-owned network operator involves a transfer of state resources to the supplier. Guaranteed supply of electricity at fixed prices confers an advantage to the supplier. Introduction Member States are allowed to take measures to ensure the security of energy supplies. There is a variety of such measures: imposition of obligations on […]

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22. Februar 2022 | State Aid Uncovered von Phedon Nicolaides

Compensation for Damage and De Minimis Aid

State Aid Blogs - Social Media posts 4

State Aid Blogs - Social Media posts 4

Compensation for damage caused by protected animals is State aid. Member States may categorise compensatory payments as de minimis aid and refuse to make payments in excess of the de minimis threshold. Introduction Advantage in the meaning of Article 107(1) TFEU is any benefit granted by the state that is not available under normal market conditions. Normal market conditions are […]

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15. Februar 2022 | State Aid Uncovered von Phedon Nicolaides

Compensation and State Aid

State Aid Blogs - Social Media posts 3 2

State Aid Blogs - Social Media posts 3 2

An event that causes damage for which the state is liable is distinct from the act that confers the right for compensation. Introduction The concept of State aid covers all resources that are controlled by the state, regardless of the reason why such resources may be transferred to or put at the disposal of an undertaking. On 25 January 2022, […]

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8. Februar 2022 | State Aid Uncovered von Phedon Nicolaides

The Mysterious “Substantial” Competitive Effect

State Aid Blogs - Social Media posts 3

State Aid Blogs - Social Media posts 3

State aid has a “substantial” effect on competitors when it has a direct and negative impact on their market positions that goes beyond the typical influence of aid on competitive relationships. Introduction State aid always harms competition and competitors. A public measure that has no effect on competition is not State aid. Therefore, it is not enough for a company […]

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1. Februar 2022 | State Aid Uncovered von Phedon Nicolaides

I. The Commission Need not Always Open the Formal Investigation Procedure before Correcting a Faulty Decision II. Fines for Failure to Recover Incompatible Aid

State Aid Blogs - WhatsApp Image 2022 01 31 at 15.42.44

State Aid Blogs - WhatsApp Image 2022 01 31 at 15.42.44

The formal investigation procedure need not be re-opened when the fault lies in the legal assessment of the measure in question. Incompatible State aid has to be recovered quickly and effectively, even from insolvent undertakings. Introduction This article examines two recent judgments concerning Greece. The first judgment explains when the Commission does not have to re-open the formal investigation procedure […]

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25. Januar 2022 | State Aid Uncovered von Phedon Nicolaides

Duplication of Infrastructure Does not Promote Regional Development

State Aid Blogs - Social Media posts 6

State Aid Blogs - Social Media posts 6

A private investor is not interested in regional development. A private investor recoups its investment in infrastructure from revenue from the operation of that infrastructure. Duplication of infrastructure does not contribute to regional development. Introduction In 2015 the European Commission caused a buzz in the State aid community when it decided that investment aid granted to a small Polish airport […]

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18. Januar 2022 | State Aid Uncovered von Phedon Nicolaides

A Non-Selective Financial Tax with a Narrow Scope

State Aid Blogs - Social Media posts 3

State Aid Blogs - Social Media posts 3

The scope of a tax must be objectively defined in order for those excluded from the tax not to benefit from a selective advantage. Introduction Taxes are burdens, so they fall outside the scope of Article 107(1) TFEU which prohibits selective benefits funded with state resources. Normally, Article 107(1) applies to benefits from tax exemptions or tax derogations which result […]

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