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

13. März 2018 | State Aid Uncovered von Phedon Nicolaides

What Is and What Is not Export Aid

State Aid Blogs - 13.03. Trade StateAid deminimis

State Aid Blogs - 13.03. Trade StateAid deminimis

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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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). […]

Keine Kommentare

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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22. August 2017 | State Aid Uncovered von Phedon Nicolaides

State Aid Is Not Compatible With the Internal Market when it Contravenes other EU Rules

State Aid Blogs - m 4 1

State Aid Blogs - m 4 1

Relief from a penalty imposed by EU rules is State aid that is incompatible with the internal market. Introduction EU rules contain a standard exclusion: State aid cannot be declared compatible with the internal market when it is non-severable [i.e. cannot be separated] from a violation of EU law. Yet, cases involving non-severable violations of EU law are rare. […]

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15. August 2017 | State Aid Uncovered von Phedon Nicolaides

Exceptions to the Exceptional Nature of State Aid for Banks

State Aid Blogs - m 4

State Aid Blogs - m 4

State aid for banks can be granted without triggering resolution in cases of precautionary recapitalisation and liquidation. Introduction A primary objective of the European response to the financial crisis was to sever the link between troubled banks and indebted sovereign. The principle now is that if a bank needs money to meet the capital adequacy ratio required by banking […]

Keine Kommentare

8. August 2017 | State Aid Uncovered von Phedon Nicolaides

Sale of State-Owned Bank

State Aid Blogs - 01.11.17 State aid

State Aid Blogs - 01.11.17 State aid

The sale of a public asset is free of State aid when it is open, transparent, non-discriminatory, unconditional and the award is made to the highest binding and credible offer. Introduction The rules on State aid to financial institutions and banks have become very strict. Owners and creditors have to be bailed in [the so-called burden sharing] and the […]

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1. August 2017 | State Aid Uncovered von Phedon Nicolaides

Collective Insolvency and the GBER

State Aid Blogs - m 8

State Aid Blogs - m 8

The eligibility of an aid applicant and the legality of the aid are determined at the point when the aid is granted. If afterwards the aid recipient ceases to be an SME or enters in financial difficulties it is not a relevant issue. Introduction When Member States grant aid on the basis of the General Block Exemption Regulation [Regulation […]

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25. Juli 2017 | State Aid Uncovered von Phedon Nicolaides

Transfer of Trademarks

State Aid Blogs - m 9

State Aid Blogs - m 9

The free transfer of a trademark that belongs to the state confers two possible advantages to the new owner if there is a market for that trademark. Introduction When a public authority places at the disposal of an undertaking a public asset, it confers to that undertaking a competitive advantage. The competitive advantage is eliminated whenever that public authority […]

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18. Juli 2017 | State Aid Uncovered von Phedon Nicolaides

Even the Catholic Church Is not Absolved from State Aid Rules: The Essence of Economic Activity – PART II

State Aid Blogs - m 10

State Aid Blogs - m 10

Purely religious activities and education funded by the state are not economic in nature. Read the I. part of the article, here. Selective economic advantage The Court proceeded to examine the possible existence of a selective economic advantage. It first recalled, in paragraph 65, that the concept of State aid covers only those public measures which favour certain undertakings “or” […]

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11. Juli 2017 | State Aid Uncovered von Phedon Nicolaides

Even the Catholic Church Is not Absolved from State Aid Rules: The Essence of Economic Activity – PART I

State Aid Blogs - m 10

State Aid Blogs - m 10

Purely religious activities and education funded by the state are not economic in nature. Introduction On 27 June 2017 the Court of Justice ruled in case C‑74/16, Congregación de Escuelas Pías Provincia Betania v Ayuntamiento de Getafe.[1] The ruling was in response to a request from a Spanish administrative court dealing with a tax dispute between religious schools and the municipality of […]

10 Kommentare

4. Juli 2017 | State Aid Uncovered von Phedon Nicolaides

Imputability to the State

State Aid Blogs - m 11

State Aid Blogs - m 11

State resources and imputability or attribution to the state are two distinct concepts. They must both be satisfied in order for a measure to constitute State aid. Introduction Several Member States have set up “promotional” banks or national development banks. Some of these promotional banks pursue only public policy objectives by channelling cheap funds to SMEs. Some others provide funding […]

2 Kommentare

27. Juni 2017 | State Aid Uncovered von Phedon Nicolaides

Is there any Advantage for Owners, Operators or Users of Publicly Funded Ports?

State Aid Blogs - m 12

State Aid Blogs - m 12

Public funding of ports confers an advantage to their owners, but not for operators chosen competitively or users who pay a market price. Introduction Few issues have exercised public authorities more than the funding of infrastructure which is used for commercial purposes. This is because State aid may benefit the owner and/or the operator and/or the users of the […]

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20. Juni 2017 | State Aid Uncovered von Phedon Nicolaides

The Effectiveness of Clear Guidance: The Case of Broadband Networks

State Aid Blogs - m 13

State Aid Blogs - m 13

This blog examines how much aid goes to support broadband networks and what lessons can be drawn from the Commission’s decisional practice. Introduction A principal objective of the State Aid Modernisation was to free Commission resources from the time-consuming task of checking the conformity of routine measures of State aid. Consequently, the General Block Exemption Regulation was extended to […]

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