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

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 […]

2 Kommentare

7. August 2018 | State Aid Uncovered von Phedon Nicolaides

The Compatibility of State Aid Depends on the Rules which are Applicable at the Time the Aid is Granted

State Aid Blogs - SAH Blopost31 SA Italy Bustransfer

State Aid Blogs - SAH Blopost31 SA Italy Bustransfer

Failure to comply with just a single provision of an exemption regulation results in the non-applicability of the whole regulation and makes any implemented aid measure automatically illegal. The compatibility of aid measures adopted in the past but continuing having effects are assessed not on the basis of old rules but on the basis of the rules which are applicable […]

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6. März 2018 | State Aid Uncovered von Phedon Nicolaides

State Aid for R&D

State Aid Blogs - m 5

State Aid Blogs - m 5

A large amount of State aid can still be compatible with the internal market if it meets all of the requirements of the RDI Framework. Introduction Since the coming into force of the GBER, only very few cases of R&D have been notified to the Commission. This means that it is not so obvious how the State aid […]

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27. Februar 2018 | State Aid Uncovered von Phedon Nicolaides

Economic Activities in a System of Social Solidarity

State Aid Blogs - 27.02.18 Economic Activities HealthInsurance State Aid

State Aid Blogs - 27.02.18 Economic Activities HealthInsurance State Aid

Entities that pursue profit must be classified as undertakings. Introduction On 5 February 2018, the General Court annulled Commission decision 2015/248 concerning health insurance in Slovakia [see judgment in case T‑216/15, Dôvera zdravotná poist’ovňa et al v European Commission].[1] The Commission decision was reviewed here on 10 March 2015.(View article at http://stateaidhub.eu/blogs/stateaiduncovered/post/1707.)The Commission had concluded that the providers of health […]

5 Kommentare

20. Februar 2018 | State Aid Uncovered von Phedon Nicolaides

What Happens when Things Go Wrong

State Aid Blogs - 20.02.18 StateAid

State Aid Blogs - 20.02.18 StateAid

Only EU institutions can provide assurances that aid is granted legally. The amount of State aid in a state guarantee given to a company in difficulty can be equal to the amount of the guaranteed loan. The simultaneity of public and private investments is not enough to ensure that the public investment is at market terms. They must also be […]

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13. Februar 2018 | State Aid Uncovered von Phedon Nicolaides

Investment in Airport Infrastructure

State Aid Blogs - ashim d silva pGcqw1ARGyg unsplash

State Aid Blogs - ashim d silva pGcqw1ARGyg unsplash

Public funding of infrastructure used for non-economic purposes does not constitute State aid. Public investment in infrastructure used for economic purposes does not constitute State aid if the investment can generate a return that is acceptable to a private investor. Introduction On 25 January 2018, the General Court ruled in case T-818/14, Brussels South Charleroi Airport v Commission.[1] Brussels […]

Ein Kommentar

6. Februar 2018 | State Aid Uncovered von Phedon Nicolaides

How a Private Investor Behaves: EDF v Commission

State Aid Blogs - 17.10. imputability stateaid

State Aid Blogs - 17.10. imputability stateaid

A private investor carries out an assessment of the prospective profitability of a company before it invests in it. Ex post assessment is not sufficient. Evidence that the investment is likely to be profitable is not enough. The return must be high enough to satisfy a private investor in a similar situation (by compensating it for the risk it assumes). […]

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30. Januar 2018 | State Aid Uncovered von Phedon Nicolaides

The Puzzle of the State Acting as a Regulator

State Aid Blogs - joao silas UGQoo2nznz8 unsplash

State Aid Blogs - joao silas UGQoo2nznz8 unsplash

When the state exercises its regulatory tasks, it does not have to demand fees and therefore it does not forgo potential state resources. Introduction A few weeks ago the Commission considered whether the regulatory actions of the state fell within the scope of Article 107(1) TFEU. In decision SA.42028 concerning aid to Yliopiston Apteekki Oy in Finland, the Commission […]

Ein Kommentar

23. Januar 2018 | State Aid Uncovered von Phedon Nicolaides

Danish Horse Racing

State Aid Blogs - horse betting Denmark State Aid

State Aid Blogs - horse betting Denmark State Aid

Taxes hypothecated to State aid measures fall within the scope of the assessment of the compatibility of those measures. Introduction Operating aid is not normally allowed. Yet, in decision SA.48604 concerning horse-racing betting in Denmark the Commission appears to have authorised operating aid.[1] This measure was approved within six months. In the post-SAM, it must be one of the […]

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16. Januar 2018 | State Aid Uncovered von Phedon Nicolaides

Selectivity Requires Comparison

State Aid Blogs - ah life rd2jRzEum9g unsplash

State Aid Blogs - ah life rd2jRzEum9g unsplash

To determine whether a measure is selective it is necessary to compare the beneficiary companies to other companies which are in a similar situation and determine whether the latter receive the same advantage. Introduction[1] On 20 December 2017, the Court of Justice delivered three judgments in appeals against rulings of the General Court concerning the expansion of digital terrestrial television […]

2 Kommentare

9. Januar 2018 | State Aid Uncovered von Phedon Nicolaides

Structural Disadvantages and Regional Aid

State Aid Blogs - StateAidHub blogpost35 port concessions

State Aid Blogs - StateAidHub blogpost35 port concessions

Aid that seeks to neutralise a structural disadvantage still confers an advantage. Aid that seeks to remedy market failure is selective. State aid that is compatible with the internal market must be necessary to achieve an objective of the Treaty and be capable of incentivising a change in the behaviour of the recipient undertakings. Introduction On 13 December 2017, […]

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2. Januar 2018 | State Aid Uncovered von Phedon Nicolaides

PART II: Concessions and State Aid: Does the State Act as a Regulator or Market Operator?

State Aid Blogs - marcin jozwiak 44YvpqQ595w unsplash

State Aid Blogs - marcin jozwiak 44YvpqQ595w unsplash

When Member States act as regulators they need not maximise revenue from the granting of concessions rights. When Member States act as regulators they must grant concession rights on the basis of procedures which are competitive, transparent, non-discriminatory and unconditional. Part II: Public procurement principles[1] Principles for selection of concession holders The Commission examined also, in addition to the […]

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