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.

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

State Aid Uncovered ×

Exemption from Taxes that Protect the Environment May not be Selective – Part I

Member States have discretion to impose taxes that penalise environmentally harmful activities. Exemption of undertakings whose activities do not harm the environment does not constitute State aid whenever the exempted undertakings are not in a comparable situation.   Application of Article 107(1) to the Asturias tax   In this case, exempted establishments were those with sales area less than 4000m2 or […]

Dealing with Problematic Banks

The sale of a bank through a fair, open, competitive and transparent procedure that maximises the value of the assets and liabilities is free of State aid.   Introduction This week’s article returns to the theme of State aid to banks and examines a case of “precautionary” recapitalisation and a case of sale of a bank, that was linked to […]

Compensation for Public Service Obligations

Compensation for public service obligations may be fixed at less than the net extra costs of the provider of the public service to induce it to become more efficient.   Introduction   Every three years the UK determines the compensation it provides to the Post Office Limited (POL) for the extra costs of the public services it provides. Commission decision […]

Liquidity Support to Banks

Banks that receive State aid are considered to be failing banks, except when the aid is granted to solvent banks for the purpose of precautionary recapitalisation or temporary liquidity.   Introduction   During the past decade, large amounts of public funds have been committed to shore up failing or illiquid banks. Under current banking rules, the mere fact that a […]

Complaints about Billboards and Welfare Services

A regulatory measure may affect competition but it does not constitute State aid. Administrative changes to existing aid measures do not result in new State aid.   Introduction This article reviews two Commission decisions: one concerning a Czech regulatory measure and another concerning existing aid to German social organisations. Both decisions dealt with complaints about alleged illegal State aid.   […]

What Makes a Public Health Care System Non-economic?

Health services are not economic in nature when they are funded by the state through taxation, they are provided for free or at a nominal fee which is the same for all patients and they are available to all citizens on a universal basis and on the same terms.   Introduction   After the judgment of the General Court of […]

Advantage through Contracts

A price below the regulated normal price confers an advantage. Competition is distorted even when the aid recipient does not expand its operations.   Introduction An undertaking can obtain an advantage without receiving an outright grant. The advantage may be hidden in a contract for the supply of an essential input at reduced prices. This is the issue tackled by […]

Correct Pricing for the Use of Publicly Funded Infrastructure

Publicly funded infrastructure must be made available to users at prices that correspond to its market value.   Introduction   When publicly-funded infrastructure is placed at the disposal of an undertaking, that undertaking must pay a market price, otherwise it derives an advantage in the meaning of Article 107(1) TFEU. But what is the market price? Is it the price […]

Private Creditor v Private Investor

A private investor never agrees to an unprofitable transaction while a private creditor may agree to a loss in order to avoid a bigger loss from non-recovery of debt owed to it. A public authority acting as a private operator must disregard any losses it may incur from State aid it granted in the past.   Introduction   A question […]

What Is and What Is not Export Aid

The prohibition of export aid prevents distortions in the internal market. Therefore, it cannot be considered as restricting intra-EU trade. Aid is classified as export aid only if it has a direct impact on exports. The incidental and indirect effect on exports of investment aid is not sufficient to categorise it as export aid.   Introduction On 28 February 2018, […]

State Aid Uncovered ×

Exemption from Taxes that Protect the Environment May not be Selective – Part I

Member States have discretion to impose taxes that penalise environmentally harmful activities. Exemption of undertakings whose activities do not harm the environment does not constitute State aid whenever the exempted undertakings are not in a comparable situation.   Application of Article 107(1) to the Asturias tax   In this case, exempted establishments were those with sales area less than 4000m2 or […]

Dealing with Problematic Banks

The sale of a bank through a fair, open, competitive and transparent procedure that maximises the value of the assets and liabilities is free of State aid.   Introduction This week’s article returns to the theme of State aid to banks and examines a case of “precautionary” recapitalisation and a case of sale of a bank, that was linked to […]

Compensation for Public Service Obligations

Compensation for public service obligations may be fixed at less than the net extra costs of the provider of the public service to induce it to become more efficient.   Introduction   Every three years the UK determines the compensation it provides to the Post Office Limited (POL) for the extra costs of the public services it provides. Commission decision […]

Liquidity Support to Banks

Banks that receive State aid are considered to be failing banks, except when the aid is granted to solvent banks for the purpose of precautionary recapitalisation or temporary liquidity.   Introduction   During the past decade, large amounts of public funds have been committed to shore up failing or illiquid banks. Under current banking rules, the mere fact that a […]

Complaints about Billboards and Welfare Services

A regulatory measure may affect competition but it does not constitute State aid. Administrative changes to existing aid measures do not result in new State aid.   Introduction This article reviews two Commission decisions: one concerning a Czech regulatory measure and another concerning existing aid to German social organisations. Both decisions dealt with complaints about alleged illegal State aid.   […]

What Makes a Public Health Care System Non-economic?

Health services are not economic in nature when they are funded by the state through taxation, they are provided for free or at a nominal fee which is the same for all patients and they are available to all citizens on a universal basis and on the same terms.   Introduction   After the judgment of the General Court of […]

Advantage through Contracts

A price below the regulated normal price confers an advantage. Competition is distorted even when the aid recipient does not expand its operations.   Introduction An undertaking can obtain an advantage without receiving an outright grant. The advantage may be hidden in a contract for the supply of an essential input at reduced prices. This is the issue tackled by […]

Correct Pricing for the Use of Publicly Funded Infrastructure

Publicly funded infrastructure must be made available to users at prices that correspond to its market value.   Introduction   When publicly-funded infrastructure is placed at the disposal of an undertaking, that undertaking must pay a market price, otherwise it derives an advantage in the meaning of Article 107(1) TFEU. But what is the market price? Is it the price […]

Private Creditor v Private Investor

A private investor never agrees to an unprofitable transaction while a private creditor may agree to a loss in order to avoid a bigger loss from non-recovery of debt owed to it. A public authority acting as a private operator must disregard any losses it may incur from State aid it granted in the past.   Introduction   A question […]

What Is and What Is not Export Aid

The prohibition of export aid prevents distortions in the internal market. Therefore, it cannot be considered as restricting intra-EU trade. Aid is classified as export aid only if it has a direct impact on exports. The incidental and indirect effect on exports of investment aid is not sufficient to categorise it as export aid.   Introduction On 28 February 2018, […]

State Aid Uncovered ×

Exemption from Taxes that Protect the Environment May not be Selective – Part I

Member States have discretion to impose taxes that penalise environmentally harmful activities. Exemption of undertakings whose activities do not harm the environment does not constitute State aid whenever the exempted undertakings are not in a comparable situation.   Application of Article 107(1) to the Asturias tax   In this case, exempted establishments were those with sales area less than 4000m2 or […]

Dealing with Problematic Banks

The sale of a bank through a fair, open, competitive and transparent procedure that maximises the value of the assets and liabilities is free of State aid.   Introduction This week’s article returns to the theme of State aid to banks and examines a case of “precautionary” recapitalisation and a case of sale of a bank, that was linked to […]

Compensation for Public Service Obligations

Compensation for public service obligations may be fixed at less than the net extra costs of the provider of the public service to induce it to become more efficient.   Introduction   Every three years the UK determines the compensation it provides to the Post Office Limited (POL) for the extra costs of the public services it provides. Commission decision […]

Liquidity Support to Banks

Banks that receive State aid are considered to be failing banks, except when the aid is granted to solvent banks for the purpose of precautionary recapitalisation or temporary liquidity.   Introduction   During the past decade, large amounts of public funds have been committed to shore up failing or illiquid banks. Under current banking rules, the mere fact that a […]

Complaints about Billboards and Welfare Services

A regulatory measure may affect competition but it does not constitute State aid. Administrative changes to existing aid measures do not result in new State aid.   Introduction This article reviews two Commission decisions: one concerning a Czech regulatory measure and another concerning existing aid to German social organisations. Both decisions dealt with complaints about alleged illegal State aid.   […]

What Makes a Public Health Care System Non-economic?

Health services are not economic in nature when they are funded by the state through taxation, they are provided for free or at a nominal fee which is the same for all patients and they are available to all citizens on a universal basis and on the same terms.   Introduction   After the judgment of the General Court of […]

Advantage through Contracts

A price below the regulated normal price confers an advantage. Competition is distorted even when the aid recipient does not expand its operations.   Introduction An undertaking can obtain an advantage without receiving an outright grant. The advantage may be hidden in a contract for the supply of an essential input at reduced prices. This is the issue tackled by […]

Correct Pricing for the Use of Publicly Funded Infrastructure

Publicly funded infrastructure must be made available to users at prices that correspond to its market value.   Introduction   When publicly-funded infrastructure is placed at the disposal of an undertaking, that undertaking must pay a market price, otherwise it derives an advantage in the meaning of Article 107(1) TFEU. But what is the market price? Is it the price […]

Private Creditor v Private Investor

A private investor never agrees to an unprofitable transaction while a private creditor may agree to a loss in order to avoid a bigger loss from non-recovery of debt owed to it. A public authority acting as a private operator must disregard any losses it may incur from State aid it granted in the past.   Introduction   A question […]

What Is and What Is not Export Aid

The prohibition of export aid prevents distortions in the internal market. Therefore, it cannot be considered as restricting intra-EU trade. Aid is classified as export aid only if it has a direct impact on exports. The incidental and indirect effect on exports of investment aid is not sufficient to categorise it as export aid.   Introduction On 28 February 2018, […]

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