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

7. Juli 2020  |   State Aid Uncovered von Phedon Nicolaides

Third Amendment to the Temporary Framework & Prolongation of the GBER, De Minimis Regulation and Guidelines
european commission
Micro and small enterprises in difficulty are no longer excluded from the Temporary Framework. Undertakings in difficulty as a result of COVID-19 are no longer excluded from the GBER and Guidelines. Update on Temporary Framework: Number of approved and published COVID-19 measures, as of 3 July 2020: 185* Legal basis: Article 107(2)(b): 17 Article 107(3)(b): 155; Article 107(3)(c): 16 Five […]
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30. Juni 2020  |   State Aid Uncovered von Phedon Nicolaides

Health Insurance Based on Social Solidarity Is Non-economic
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
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
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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11. Juni 2020  |   Guest State Aid Blog von Erika Szyszczak

When State Aid Gets Political
State Aid Blogs - brexit 3870554 1920
We are happy to receive a guest comment on the EU – UK post-Brexit trade negotiations from Professor Emerita, Erika Szyszczak, who is a Fellow of UKTPO at the University of Sussex. This is a longer version of an earlier Blog published on the UKTPO website. Control over State aid is a stumbling block for the future of an EU […]
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9. Juni 2020  |   State Aid Uncovered von Phedon Nicolaides

Private Investor and Preferential Regulatory Treatment
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
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
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
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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14. Mai 2020  |   Guest State Aid Blog von Wout De Cock

Belgium and COVID-19: The European Commission Approves Several Belgian State Aid Measures
corona virus
We are happy to share with you an update on the Covid-19 measures that have been approved in Belgium. Our guest auhor Wout De Cock is a PhD candidate at the Vrije Universiteit Brussel and part-time teaching assistant at the Katholieke Universiteit Leuven.* Introduction In issue 1/2020 of the European State Aid Law Quarterly, we concluded that the European Commission […]
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12. Februar 2020  |   State Aid Uncovered von Phedon Nicolaides

An Important (and so far, Unique) Project of Common European Interest
State Aid Blogs - StateAidHub blogpost6 microplastics IPCEI
State aid for important R&D projects of common European interest can cover different costs than the RDI Framework and at different rates of intensity. Introduction Several Member States have demanded a more active industrial policy to counteract perceived unfair foreign competition. The Commission’s response has partly been that current rules do allow cross-border cooperation for the development of innovative products. […]
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4. Februar 2020  |   State Aid Uncovered von Phedon Nicolaides

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation
State Aid Blogs - StateAidHub blogpost5 SGEI
The “net avoided cost methodology” takes into account only incremental costs. Introduction The two most difficult issues in the design of State aid measures to support services of general economic interest [SGEI] are the proper definition of the public service obligation [PSO] and the identification of the “counterfactual” on the basis of which the public service compensation [PSC] is calculated. […]
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28. Januar 2020  |   State Aid Uncovered von Phedon Nicolaides

State Aid Rules in the UK after Brexit: Alignment or Divergence?
State Aid Blogs - StateAidHub blogpost4 Brexit
The current rules will apply at least until 31 December 2020. Introduction On Saturday, 1 February 2020, the United Kingdom will no longer be a Member of the European Union. Will it then have to abide by EU State aid rules? According to the Agreement on the Withdrawal of the UK from the EU, the whole of the UK will […]
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23. Januar 2020  |   State Aid Uncovered von Phedon Nicolaides

Public Subsidies to Households Can Be State aid
State Aid Blogs - m 44
Support for individual borrowers can be indirect State aid to banks.   Introduction The fact that a public measure has social objectives and aims to help poor households or disadvantaged persons instead of undertakings does not necessarily remove it from the reach of State aid rules. During the past decade, in response to the economic crisis, a number of Member […]
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14. Januar 2020  |   State Aid Uncovered von Phedon Nicolaides

Exclusive Rights and Legal Monopolies
StateAidHub_LegalMonopolies
State aid rules can apply to sectors which are legal monopolies. Introduction The fact that a company enjoys exclusive rights and operates in a sector covered by a legal monopoly does not necessarily insulate it from State aid rules. This has been confirmed by the Court of Justice in its judgment of 19 December 2019, in case C-385/18, Arriva Italia […]
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7. Januar 2020  |   State Aid Uncovered von Phedon Nicolaides

Bail-in Is the Responsibility of Member States
State Aid Blogs - StateAidHub blogpost1 Bail In 2
Commission approval of State aid to bail-out a bank does not give rise to right for compensation for creditors who are bailed-in. Introduction Investors in banks who lost their money have sought compensation both at EU and national level. So far, claims for damages at EU level have been unsuccessful. In some instances, the cases before EU and national courts […]
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27. Dezember 2019  |   State Aid Uncovered von Lexxion Publisher

5 Most Read Articles on StateAidUncovered in 2019
State Aid Blogs - 5 most read articles 2019
Groundbreaking judgments like “Eesti Pagar”, applications of the private investor principle in air transport or questions of interpretation of the GBER besides many more, have moved and shaped this year’s judgments on State aid. Also Brexit and its meaning for State aid control in the UK has still been on everyone’s mind. See which articles by Prof. Phedon Nicolaides were […]
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23. Dezember 2019  |   State Aid Uncovered von Phedon Nicolaides

A Preferential Electricity Tariff Is Selective, Confers an Advantage and Distorts Competition
State Aid Blogs - StateAidUncovered blogpost53 Alouminion
A judicial decision on interim measures is a selective measure. The private investor test does not apply to judicial decisions on interim measures. Introduction On 11 December 2019, in case C‑332/18 P, Mytilinaios Anonymos Etairia — Omilos Epicheiriseon v European Commission, the Court of Justice probably wrote the last chapter in a long-running case concerning privileges that had been granted […]
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17. Dezember 2019  |   State Aid Uncovered von Phedon Nicolaides

Can a Tax (rather than a Tax Exemption) Confer a Selective Advantage?
State Aid Blogs - StateAidHub blogpost52 Stateaid Lexxion TAX Water Spain European Commission
A tax that is levied at one level of government and does not apply to products and activities at a different level of government need not be selective. Introduction A tax exemption normally confers a selective advantage, unless it is justified by the logic of the tax. Counterintuitively, a tax itself can be selectively advantageous if its scope is too […]
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10. Dezember 2019  |   State Aid Uncovered von Phedon Nicolaides

Retroactive Application of the GBER
State Aid Blogs - m
When an aid scheme is adjusted by limiting the eligible beneficiaries, it becomes “new” aid and must be notified to the Commission. The GBER can be applied retroactively to aid that was granted before it came into force.   Introduction In July 2016, Dilly’s Wellnesshotel wrote legal history for being the first undertaking to contest the application of the General […]
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