Europäisches Beihilfenrecht Blog

State Aid Uncovered by Prof Phedon Nicolaides

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

1. Dezember 2020 | State Aid Uncovered von Phedon Nicolaides

A Rare Case of Altmark-compliant SGEI (Part I)

State Aid Blogs - container 1638068 1920

State Aid Blogs - container 1638068 1920

For a service to be in the general economic interest, it must be shown to fill a gap in the market or to offer what the market fails to provide adequately. Introduction Services of general economic interest [SGEI] are important for the functioning of European societies. However, the granting of compensation to an undertaking for the provision of SGEI must […]

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24. November 2020 | State Aid Uncovered von Phedon Nicolaides

De Minimis Aid

processed wood

processed wood

If different awards of de minimis aid bring the total amount over the ceiling of EUR 200,000, Member States may withdraw aid already granted or reduce the amount of aid that is scheduled to be granted or simply refuse to grant aid so as to ensure that the total remains below the ceiling for any three-fiscal year period. Introduction A […]

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10. November 2020 | State Aid Uncovered von Phedon Nicolaides

What is the Value of Informal Commission Communications?

State Aid Blogs - freighter 315201 1280

State Aid Blogs - freighter 315201 1280

An official’s statement can be imputed to his authority if it can be reasonably assumed that the official speaks on behalf of the authority. Introduction It is often asked by national officials how much credence they should give to assurances by Commission officials in the absence of a formal Commission decision and what is the legal value of such assurances. […]

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3. November 2020 | State Aid Uncovered von Phedon Nicolaides

The Concept of SME, Indirect Control by Public Bodies and New Problems for Public Universities and Research Organisations

State Aid Blogs - columns 5135499 1920

State Aid Blogs - columns 5135499 1920

I am grateful to Peter Staviczky for comments on an earlier draft. A company that is owned by more than 25% by public bodies is not considered to be an SME, regardless of whether those public bodies actually exercise direct or indirect control. A public university can be a public body. Temporary Framework Update: Number of approved and published covid-19 […]

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3. November 2020 | State Aid Uncovered von Phedon Nicolaides

Evaluation of EU State Aid Rules: Need for Greater Transparency

State Aid Blogs - office 4249408 1920

State Aid Blogs - office 4249408 1920

On Friday, 30 November 2020, the European Commission published a Staff Working Document [SWD(2020) 257 final] presenting and assessing the results of the evaluation of the main State aid rules of the EU. The SWD explains the aims of the State Aid Modernisation [SAM] that was launched in 2012 and summarises the findings of the Fitness Check of the GBER, […]

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27. Oktober 2020 | State Aid Uncovered von Phedon Nicolaides

The Common European Interest and the Environmental Impact of State Aid: The Case of Nuclear Power

State Aid Blogs - nuclear power plant 4535761 1920

State Aid Blogs - nuclear power plant 4535761 1920

I am grateful to Peter Staviczky for comments on an earlier version. The possible negative impact of State aid on the environmental is taken into account when the aid measure violates directly the relevant EU law. The Commission protects the interests of other Member States by ensuring that the negative effects of State aid are kept to the minimum possible. […]

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20. Oktober 2020 | State Aid Uncovered von Phedon Nicolaides

Employees’ Social Security Contributions and Compensation for Damage

State Aid Blogs - fishing boats 1785400 1920

State Aid Blogs - fishing boats 1785400 1920

Fiscal benefits to employees do not constitute State aid as long as they do not confer a direct or indirect advantage to their employers. Update on Temporary Framework: Number of approved and published Covid-19 measures, as of 16 October 2020: 302* Legal basis: Article 107(2)(b): 32; Article 107(3)(b): 255; Article 107(3)(c): 23 Average number of measures per Member State: 11 […]

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13. Oktober 2020 | State Aid Uncovered von Phedon Nicolaides

Market Economy Operator Principle: The Case of FIH

State Aid Blogs - danish currency 1139103 1920

State Aid Blogs - danish currency 1139103 1920

Negotiated transactions are not necessarily market conform. Update on Temporary Framework: Number of approved and published covid-19 measures, as of 9 October 2020: 295* Legal basis: Article 107(2)(b): 32; Article 107(3)(b): 248; Article 107(3)(c): 23 – Average number of measures per Member State: 10.5 – Median number of measures per Member State: 12 – Mode number of measures per Member […]

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6. Oktober 2020 | State Aid Uncovered von Phedon Nicolaides

Member States Beware: Compliance with the GBER and the SME Criteria has just Become more Difficult

State Aid Blogs - doors 1767564 1920

State Aid Blogs - doors 1767564 1920

I am grateful to Péter Staviczky for comments on an earlier draft of this article. I am solely responsible for its contents. The European Commission retains its sole right to assess the compatibility of aid granted on the basis of the GBER. Criteria defined in national law need not be taken into account by the Commission. The SME status has […]

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30. September 2020 | State Aid Uncovered von Phedon Nicolaides

Market Economy Operator Test

State Aid Blogs - riga 2935034 1920

State Aid Blogs - riga 2935034 1920

A rational airport operator considers only incremental revenue and costs and ignores any cost not caused by an agreement with an airline. State aid developments: New Guidelines in State aid in EU ETS The Commission published on Friday, 25 September, in Official Journal C 317, p.5, the new Guidelines on State aid measures in the context of the system for […]

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30. Juni 2020 | State Aid Uncovered von Phedon Nicolaides

Health Insurance Based on Social Solidarity Is Non-economic

insurance protected

insurance protected

I am grateful to Peter Staviczky for comments on an earlier version of this article. I am, of course, solely responsible for the views expressed here. Public funding of health insurance systems based on social solidarity does not constitute State aid. Limited competition for the purpose of increasing efficiency does not affect the non-economic nature of such systems. Update on […]

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23. Juni 2020 | State Aid Uncovered von Phedon Nicolaides

The Commission’s White Paper on Foreign Subsidies: A Real Problem that Needs Sharper Tools

coins on banknotes

coins on banknotes

The European Commission proposes new instruments to counter unfair foreign subsidies and acquisition of European companies. Temporary Framework: Number of approved Covid-19 measures, as of 20 June 2020: 164* Legal basis: Article 107(2)(b): 14; Article 107(3)(b): 137; Article 107(3)(c): 15 Fifteen measures support R&D, testing or production of Covid-19 related products. Three measures support recapitalisation. The Member States with the […]

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16. Juni 2020 | State Aid Uncovered von Phedon Nicolaides

Direct v Indirect Advantages: The Case of Sardinian Airports

State Aid Blogs - ryanair 2798896 1920

State Aid Blogs - ryanair 2798896 1920

Public funding that flows through intermediaries to third parties also counts as a state resource if the intermediaries carry out instructions by the funding authority. Temporary Framework: Number of approved covid-19 measures, as of 12 June 2020: 154* Legal basis: Article 107(2)(b): 14; Article 107(3)(b): 130; Article 107(3)(c): 14 Three recapitalisation measures have been approved [Finland, Lithuania & Poland]. The […]

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9. Juni 2020 | State Aid Uncovered von Phedon Nicolaides

Private Investor and Preferential Regulatory Treatment

pills on money

pills on money

The existence of an advantage has to be proven, not presumed just because its absence cannot be confirmed. Preferential treatment may distort competition but it is not necessarily State aid if there is no transfer of state resources. Temporary Framework: Number of approved covid-19 measures, as of 5 June 2020: 148* Legal basis: Article 107(2)(b): 13; Article 107(3)(b): 125; Article […]

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2. Juni 2020 | State Aid Uncovered von Phedon Nicolaides

i) Investor-State Arbitration ii) Recovery of Incompatible State Aid iii) State Aid Scoreboard 2019

euro coins

euro coins

Member States abolish bilateral investment treaties between themselves. When the Commission orders recovery of incompatible State aid, interest has to be added to the recoverable amount for the whole period of illegality regardless of any national limitation rules. In 2018, Member States granted EUR 121 billion to industry and services, EUR 6.3 billion to agriculture and EUR 50 billion to […]

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26. Mai 2020 | State Aid Uncovered von Phedon Nicolaides

State Aid for i) Water Development ii) Travel

State Aid Blogpost 21 Picture

State Aid Blogpost 21 Picture

Aid to individuals in the context of social policy is compatible with the internal market as long as it is granted without discrimination on the origin of products or services. Temporary Framework: Number of approved covid-19 measures, as of 22 May 2020: 129* Legal basis: Article 107(2)(b): 9; Article 107(3)(b): 111; Article 107(3)(c): 12 * Excludes amendments to previously notified […]

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19. Mai 2020 | State Aid Uncovered von Phedon Nicolaides

No New Aid to Undertakings that Have not Yet Repaid Incompatible Aid

State Aid Blogs - StateAidHub blogpost20 Incompatible Aid

State Aid Blogs - StateAidHub blogpost20 Incompatible Aid

There is no rule in EU law obliging Member States to grant State aid. The European Commission may refuse to authorise aid until previous aid that was found to be incompatible with the internal market is paid back. Temporary Framework: Number of approved covid-19 measures, as of 16 May 2020: 125* Legal basis: Article 107(2)(b): 10; Article 107(3)(b): 105; Article […]

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12. Mai 2020 | State Aid Uncovered von Phedon Nicolaides

Advantage Must be Proven, Not Assumed

Road sign "Wrong Way"

Road sign "Wrong Way"

The European Commission has to consider whether the private investor principle is applicable in cases of state investments. It is for Member States to prove that their investments conform with the private investor principle. Temporary Framework As of 9 May 2020, the European Commission had approved 113 State aid measures to combat covid-19. Their legal basis was: Article 107(2)(b): 10; […]

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5. Mai 2020 | State Aid Uncovered von Phedon Nicolaides

Non-recovery of Incompatible State aid Is Costly

corona virus poster

corona virus poster

Legal and practical difficulties in the recovery of incompatible State aid do not constitute justifiable “absolute impossibility”. Temporary Framework On 1 May, the total number of State aid measures to combat covid-19 approved by the European Commission reached 102. Their legal basis was: Article 107(2)(b): 9; Article 107(3)(b): 86; Article 107(3)(c): 7 Introduction The 2020 Temporary Framework for State […]

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27. April 2020 | State Aid Uncovered von Phedon Nicolaides

Identification of Undertakings in Difficulty

corona virus poster

corona virus poster

A company is in difficulty if, in practice, its accumulated net losses exceed 50% of its subscribed capital, regardless of whether the subscribed capital is formally written down. The classification of a company as being in difficulty is independent of the sector in which it operates and of whether a private investor would be willing to invest in it. Temporary […]

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