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

16. Mai 2019 | State Aid Uncovered von Phedon Nicolaides

Competitors’ Rights

State Aid Blogs - StateaidHub blogpost19 Lexxion Lufthansa Airport StateAid Ryanair Frankfurt Competition EU Commission

State Aid Blogs - StateaidHub blogpost19 Lexxion Lufthansa Airport StateAid Ryanair Frankfurt Competition EU Commission

A competitor must show that it is substantially affected by State aid approved by the Commission in order to challenge the Commission’s decision. Merely being affected by the aid is not enough. To show that aid has a substantial impact, it is first necessary to define the relevant market. This is different from the “distortion of competition” in the meaning […]

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7. Mai 2019 | State Aid Uncovered von Phedon Nicolaides

Land Development: The Case of Jaguar Land Rover Slovakia

State Aid Blogs - StateAidHub blogpost18 Landrover Jaguar Nitra Stateaid Infrastrsucture Transport Lexxion

State Aid Blogs - StateAidHub blogpost18 Landrover Jaguar Nitra Stateaid Infrastrsucture Transport Lexxion

Public funding of infrastructure which is not constructed for the specific needs of a company is not State aid. Introduction An article carried by the Financial Times on 1 May 2019 revealed that Jaguar Land Rover [JLR] decided to make again the iconic Land Rover Defender. The production of this legendary off-roader ended about 10 years ago because it […]

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30. April 2019 | State Aid Uncovered von Phedon Nicolaides

The Commission Must Explain its Decision

State Aid Blogs - StateAid Blogpost17 2019 Lexxion UPS DeutschePost Eu Commission State Aid

State Aid Blogs - StateAid Blogpost17 2019 Lexxion UPS DeutschePost Eu Commission State Aid

A Commission decision that affects the legal position of an undertaking is actionable before EU courts. The opening of the formal investigation procedure must lead the Member State concerned to suspend the aid measure and may result in a recovery ruling by a national court. The Commission must be consistent in its reasoning. If it cannot use certain information at […]

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23. April 2019 | State Aid Uncovered von Phedon Nicolaides

State Control: The Case of EEG 2012

State Aid Blogs - 5 most read articles 2019

State Aid Blogs - 5 most read articles 2019

There is crucial difference between control by the state over resources and attribution to the state of the aid granting decision. Introduction According to the latest edition of the State aid Scoreboard, in 2017 Member States granted a total of EUR 105 billion of State aid to manufacturing and services. Of that amount, 58% or EUR 61 billion supported […]

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16. April 2019 | State Aid Uncovered von Phedon Nicolaides

Spanish Football Clubs Score against the Commission: a) Linked Advantages and Disadvantages Must be Assessed Together b) In Determining the Existence of an Advantage, the Commission Must Explain both what it Takes into Account and what it Ignores

State Aid Blogs - StateAidHub blogpost15 Soccer loans Lexxion Spain EU Commission

State Aid Blogs - StateAidHub blogpost15 Soccer loans Lexxion Spain EU Commission

State measures which are linked and produce both positive and negative effects, must be considered together to determine whether they confer a net advantage to undertakings. Counter-guarantees must be taken into account to determine the existence of advantage even if they are provisional. Introduction Member States have in a number of cases tried to defend tax reductions or tax […]

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9. April 2019 | State Aid Uncovered von Phedon Nicolaides

The Boundary between State and Private Resources

State Aid Blogs - StateAidHub blogpost14 StateAid Lexxion Money Eu Commission Bank Financial

State Aid Blogs - StateAidHub blogpost14 StateAid Lexxion Money Eu Commission Bank Financial

Discretion in the form of intervention can remove it from the control of the state. Introduction Suppose a thug puts a gun to your head and demands your wallet. Because you have sentimental photos in your wallet, you offer instead the keys to your car. You would rather lose the car than the wallet. Can the thug claim in […]

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3. April 2019 | State Aid Uncovered von Phedon Nicolaides

The Incentive Effect of Public Funding of Infrastructure in Tranches

State Aid Blogs - StateAidHub blogpost13 StateAid motorway greece E65 EU Comission lexxion

State Aid Blogs - StateAidHub blogpost13 StateAid motorway greece E65 EU Comission lexxion

Public funding of functionally and commercially severable parts of an infrastructure project may have incentive effect even after construction is completed on some of the parts. A subsidy for the operation of a toll motorway may not constitute State aid. Introduction State aid granted to a project that has already started lacks incentive effects and, therefore, cannot be found […]

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26. März 2019 | State Aid Uncovered von Phedon Nicolaides

National Authorities Must Recover Aid they Grant Mistakenly

State Aid Blogs - StateAidHub blogpost12 StateAid food bread eu small

State Aid Blogs - StateAidHub blogpost12 StateAid food bread eu small

Assurances from granting authorities cannot guarantee the legality of State aid. Aid recipients must verify that the aid is granted correctly. Introduction The Commission must stop its misguided policy of not making public the answers it provides to Member States on questions of interpretation of the General Block Exemption Regulation [GBER]. This is one of the consequences of a […]

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19. März 2019 | State Aid Uncovered von Phedon Nicolaides

Many Tax Rulings Do Not Make a Single Aid Scheme

State Aid Blogs - StateaidHub blogpost11 Lexxion 2019 Tax Commission EU judgement

State Aid Blogs - StateaidHub blogpost11 Lexxion 2019 Tax Commission EU judgement

The autonomy that Member States enjoy in the field of direct taxation must be exercised in compliance with EU State aid law. A State aid measure is considered to be a “scheme” when (a) no further implementing acts are necessary, (b) the granting authority has no discretion in how the measure is applied and (c) the measure defines the eligible […]

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13. März 2019 | State Aid Uncovered von Phedon Nicolaides

How Can Incompatible State Aid Be Passed-on from one Company to another to Avoid Recovery?

State Aid Blogs - StateaidHub blogpost10 2019 commission judgement nvestment state aid lexxion

State Aid Blogs - StateaidHub blogpost10 2019 commission judgement nvestment state aid lexxion

Introduction State aid that is incompatible with the internal market has to be paid back, unless the repayment would be contrary to a general principle of EU law. Last November the Court of Justice ruled in case C‑622/16 P, Scuola Elementare Maria Montessori v European Commission that “(79) the principle that ‘no one is obliged to do the impossible’ is among the […]

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16. Oktober 2018 | State Aid Uncovered von Phedon Nicolaides

Unlimited State Guarantees

State Aid Blogs - m 2 1

State Aid Blogs - m 2 1

Unlimited state guarantees create a presumption that the recipient of the guarantee obtains an advantage in the form of cheaper credit. Any advantage in the form of lower risk in transactions with suppliers or clients has to be proven. Introduction State guarantees must be limited in time and amount and may cover only a specified event. Unlimited and general […]

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9. Oktober 2018 | State Aid Uncovered von Phedon Nicolaides

Ex ante Assessment of Future Profitability is Absolutely Necessary

State Aid Blogs - m 1 1

State Aid Blogs - m 1 1

A private investor assesses the prospects of future profitability before it invests. The burden of proof lies with the Member State that claims it has acted as a private investor. Introduction The market economy investor principle is based on a simple premise: before you commit your money you need to check how much you are likely to get back. […]

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2. Oktober 2018 | State Aid Uncovered von Phedon Nicolaides

The Compatibility of State Aid with the Internal Market: Lessons from “Hinkley Point C” – Part III

The objective of common interest that should be supported by State aid does not have to be an objective agreed by all Member States. Environmental protection Austria argued that the Commission had ignored the potential negative effects of the aid on the environment such as the storing of nuclear waste. The reply of the Court was that “(516) in […]

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25. September 2018 | State Aid Uncovered von Phedon Nicolaides

The Compatibility of State Aid with the Internal Market: Lessons from “Hinkley Point C” – Part II

State Aid Blogs - SAH blogpost37 Hinkley Point C UK 2017

State Aid Blogs - SAH blogpost37 Hinkley Point C UK 2017

The objective of common interest that should be supported by state aid does not have to be an objective agreed by all Member States. Existence of market failure and need for aid Austria and Luxembourg claimed that the intervention by the UK was not necessary and that there was no evidence that the liberalised market for the generation and […]

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18. September 2018 | State Aid Uncovered von Phedon Nicolaides

The Compatibility of State Aid with the Internal Market: Lessons from “Hinkley Point C” – Part I

State Aid Blogs - SAH blogpost37 Hinkley Point C UK 2017

State Aid Blogs - SAH blogpost37 Hinkley Point C UK 2017

The objective of common interest that should be supported by state aid does not have to be an objective agreed by all Member States. Introduction On 12 July 2018, the General Court ruled in a complex case brought by Austria and Luxembourg against Commission decision 2015/658 which had authorised State aid for Hinkley Point C, a new nuclear power […]

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11. September 2018 | State Aid Uncovered von Phedon Nicolaides

Selectivity Can Exist at Different Levels: The Case of the Spanish Tax Lease System

transport ship

transport ship

A tax measure may be selective in relation to both intermediate and final beneficiaries. An undertaking may enjoy a selective advantage even if it passes all tax benefits to other parties. Introduction A measure that is not selective at one level may be selective at another level and a measure that is selective at one level can also be […]

4 Kommentare

4. September 2018 | State Aid Uncovered von Phedon Nicolaides

Public Procurement and State Aid

State Aid Blogs - SAH blogpost35 Nuclearpower

State Aid Blogs - SAH blogpost35 Nuclearpower

State aid does not have to be awarded on the basis of a competitive procedure, unless the relevant rules require it. Secondary legislation may allow Member States to make direct awards without a prior competitive procedure. Public procurement rules do not apply to awards between contracting authorities. Introduction Public procurement and State aid rules have the same basic […]

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28. August 2018 | State Aid Uncovered von Phedon Nicolaides

Public Service Compensation

State Aid Blogs - SAH blogpost34 PublicCompensation SGEI

State Aid Blogs - SAH blogpost34 PublicCompensation SGEI

Compensation for the provision of public services may not exceed the avoidable cost minus any forgone revenue from not having to provide those services. The VAT exemption for postal services is not State aid because it is laid down in the EU VAT directive and therefore cannot be attributed to Member States. Introduction This article reviews Commission decision on […]

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21. August 2018 | State Aid Uncovered von Phedon Nicolaides

The European Commission’s Code of Best Practices on State Aid Procedures

State Aid Blogs - SAH blogpost33 SA Code

State Aid Blogs - SAH blogpost33 SA Code

Closer cooperation between Commission services and Member States. Introduction The European Commission, DG Competition, published on 16 July 2018 on its website and then on 19 July 2018 in the Official Journal of the EU a Code of Best Practices for the Conduct of State Aid Control Procedures.[1]The purpose of the Code is to provide guidance to Member […]

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13. August 2018 | State Aid Uncovered von Phedon Nicolaides

State Aid Control in the UK after its Exit from the European Union

State Aid Blogs - SAH blogpost32 State Aid and Brexit

State Aid Blogs - SAH blogpost32 State Aid and Brexit

After its withdrawal from the EU, the UK is likely to maintain a State aid regime that is similar to that of the EU. Introduction In seven months’ time, on 29 March 2019, the UK will leave the EU. But its withdrawal from the EU will not bring to an end compliance with EU rules. The UK is […]

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