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

State Aid Uncovered ×

The Importance of Precise Definition of Public Service Obligations

The imposition of a public service obligation must be preceded by market analysis that shows that the market underprovides. For compensation of public service obligations to be compatible aid, it must satisfy the first three Altmark criteria. Surprisingly, the first three Altmark criteria must also be satisfied [in addition to the 4th criterion] for public service compensation in order not to constitute […]

The Perils of Ex Post Compensation of Public Services Obligations

Providers of SGEI must maintain separate accounts. Parameters of compensation must be determined in advance. Ex-post formulation is not in conformity with State aid rules. Ex-post calculation of compensation that covers all costs and eliminates commercial risk is not compatible with State aid rules. Introduction   The calculation of the compensation to be offered to providers of services of general economic interest […]

Guidance on the Application of Regulation 1370/2007 on Passenger Transport Services

Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how […]

The New Guidelines on State Aid to Airports and Airlines (part 1)

Introduction[1] One more set of State aid rules for 2014-20 has been adopted. On Thursday, 20 February 2014, the Commission published its Guidelines on State Aid to Airports and Airlines.[2] The other main substantive rules which are already in place are the following, in chronological order:[3] The package on services of general economic interest (SGEI): A Communication, a Decision (like a […]

Guidelines on State Aid to Promote Risk Finance Investments

Introduction   On 15 January the Commission adopted the fourth set of guidelines for the programming period 2014-2020 [the first three were those on broadband, SGEI, and regional aid]. The latest guidelines replaced those on risk capital for SMEs. What is immediately noticeable from the title of the new guidelines is that they are not confined only to funding in […]

Services of General Economic Interest and Horse Racing

Introduction Public authorities often argue that the activities they support are important and that they should be considered as services of general economic interest. However, in many cases they are not. In this article I review the Commission Decision 2014/19 concerning a parafiscal levy that was intended to fund supposedly public service obligations assigned to French horse racing companies.[1] This Decision […]

Tax Hypothecation and Economic Efficiency under Altmark: T-275/11, French Television 1 v Commission

Background France Télévisions is a limited company wholly owned by the French State. As France abolished advertising on public television, it also decided to provide financial compensation to France Télévisions. For this reason it introduced new taxes to generate revenue for the compensation: a tax on advertising and a tax on electronic communications. In January 2009, France notified to the […]

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure

Introduction   The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]

Altmark and Public Procurement: Definition and Award of Contracts

Introduction Ever since the Court of Justice ruled on Altmark ten years ago there has been a growing literature on the specific conditions that have to be satisfied so that public assistance to a provider of services of general economic interest [SGEI] does not constitute state aid. In this context, the relationship between the Altmark criteria and the public procurement […]

Restrictions on Sale of Land and Social Housing

Introduction This posting reviews the judgment of the Court of Justice of the European Union in two joined cases: Eric Libert, et al v Gouvernement Flamand, (C‑197/11) and All Projects & Developments NV and Others v Vlaamse Regering, (C‑203/11).[1] The judgment which was rendered on 8 May 2013 is important because it addresses several issues concerning public service obligations, their relationship with […]

State Aid Uncovered ×

The Importance of Precise Definition of Public Service Obligations

The imposition of a public service obligation must be preceded by market analysis that shows that the market underprovides. For compensation of public service obligations to be compatible aid, it must satisfy the first three Altmark criteria. Surprisingly, the first three Altmark criteria must also be satisfied [in addition to the 4th criterion] for public service compensation in order not to constitute […]

The Perils of Ex Post Compensation of Public Services Obligations

Providers of SGEI must maintain separate accounts. Parameters of compensation must be determined in advance. Ex-post formulation is not in conformity with State aid rules. Ex-post calculation of compensation that covers all costs and eliminates commercial risk is not compatible with State aid rules. Introduction   The calculation of the compensation to be offered to providers of services of general economic interest […]

Guidance on the Application of Regulation 1370/2007 on Passenger Transport Services

Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how […]

The New Guidelines on State Aid to Airports and Airlines (part 1)

Introduction[1] One more set of State aid rules for 2014-20 has been adopted. On Thursday, 20 February 2014, the Commission published its Guidelines on State Aid to Airports and Airlines.[2] The other main substantive rules which are already in place are the following, in chronological order:[3] The package on services of general economic interest (SGEI): A Communication, a Decision (like a […]

Guidelines on State Aid to Promote Risk Finance Investments

Introduction   On 15 January the Commission adopted the fourth set of guidelines for the programming period 2014-2020 [the first three were those on broadband, SGEI, and regional aid]. The latest guidelines replaced those on risk capital for SMEs. What is immediately noticeable from the title of the new guidelines is that they are not confined only to funding in […]

Services of General Economic Interest and Horse Racing

Introduction Public authorities often argue that the activities they support are important and that they should be considered as services of general economic interest. However, in many cases they are not. In this article I review the Commission Decision 2014/19 concerning a parafiscal levy that was intended to fund supposedly public service obligations assigned to French horse racing companies.[1] This Decision […]

Tax Hypothecation and Economic Efficiency under Altmark: T-275/11, French Television 1 v Commission

Background France Télévisions is a limited company wholly owned by the French State. As France abolished advertising on public television, it also decided to provide financial compensation to France Télévisions. For this reason it introduced new taxes to generate revenue for the compensation: a tax on advertising and a tax on electronic communications. In January 2009, France notified to the […]

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure

Introduction   The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]

Altmark and Public Procurement: Definition and Award of Contracts

Introduction Ever since the Court of Justice ruled on Altmark ten years ago there has been a growing literature on the specific conditions that have to be satisfied so that public assistance to a provider of services of general economic interest [SGEI] does not constitute state aid. In this context, the relationship between the Altmark criteria and the public procurement […]

Restrictions on Sale of Land and Social Housing

Introduction This posting reviews the judgment of the Court of Justice of the European Union in two joined cases: Eric Libert, et al v Gouvernement Flamand, (C‑197/11) and All Projects & Developments NV and Others v Vlaamse Regering, (C‑203/11).[1] The judgment which was rendered on 8 May 2013 is important because it addresses several issues concerning public service obligations, their relationship with […]

State Aid Uncovered ×

The Importance of Precise Definition of Public Service Obligations

The imposition of a public service obligation must be preceded by market analysis that shows that the market underprovides. For compensation of public service obligations to be compatible aid, it must satisfy the first three Altmark criteria. Surprisingly, the first three Altmark criteria must also be satisfied [in addition to the 4th criterion] for public service compensation in order not to constitute […]

The Perils of Ex Post Compensation of Public Services Obligations

Providers of SGEI must maintain separate accounts. Parameters of compensation must be determined in advance. Ex-post formulation is not in conformity with State aid rules. Ex-post calculation of compensation that covers all costs and eliminates commercial risk is not compatible with State aid rules. Introduction   The calculation of the compensation to be offered to providers of services of general economic interest […]

Guidance on the Application of Regulation 1370/2007 on Passenger Transport Services

Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how […]

The New Guidelines on State Aid to Airports and Airlines (part 1)

Introduction[1] One more set of State aid rules for 2014-20 has been adopted. On Thursday, 20 February 2014, the Commission published its Guidelines on State Aid to Airports and Airlines.[2] The other main substantive rules which are already in place are the following, in chronological order:[3] The package on services of general economic interest (SGEI): A Communication, a Decision (like a […]

Guidelines on State Aid to Promote Risk Finance Investments

Introduction   On 15 January the Commission adopted the fourth set of guidelines for the programming period 2014-2020 [the first three were those on broadband, SGEI, and regional aid]. The latest guidelines replaced those on risk capital for SMEs. What is immediately noticeable from the title of the new guidelines is that they are not confined only to funding in […]

Services of General Economic Interest and Horse Racing

Introduction Public authorities often argue that the activities they support are important and that they should be considered as services of general economic interest. However, in many cases they are not. In this article I review the Commission Decision 2014/19 concerning a parafiscal levy that was intended to fund supposedly public service obligations assigned to French horse racing companies.[1] This Decision […]

Tax Hypothecation and Economic Efficiency under Altmark: T-275/11, French Television 1 v Commission

Background France Télévisions is a limited company wholly owned by the French State. As France abolished advertising on public television, it also decided to provide financial compensation to France Télévisions. For this reason it introduced new taxes to generate revenue for the compensation: a tax on advertising and a tax on electronic communications. In January 2009, France notified to the […]

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure

Introduction   The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]

Altmark and Public Procurement: Definition and Award of Contracts

Introduction Ever since the Court of Justice ruled on Altmark ten years ago there has been a growing literature on the specific conditions that have to be satisfied so that public assistance to a provider of services of general economic interest [SGEI] does not constitute state aid. In this context, the relationship between the Altmark criteria and the public procurement […]

Restrictions on Sale of Land and Social Housing

Introduction This posting reviews the judgment of the Court of Justice of the European Union in two joined cases: Eric Libert, et al v Gouvernement Flamand, (C‑197/11) and All Projects & Developments NV and Others v Vlaamse Regering, (C‑203/11).[1] The judgment which was rendered on 8 May 2013 is important because it addresses several issues concerning public service obligations, their relationship with […]

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