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 ×

The Private Investor Principle Applied to Loans [Commission Decision 2013/528]

Introduction The State aid issue in this case is relatively straightforward. Nauta, a Polish shipyard, received a two-year loan from IDA, the state-owned Polish Investment Agency. Because Nauta ran into some financial trouble, the loan was extended for another two years. In Decision 2013/528, the Commission had to examine two questions: First, did the initial loan market conform? Second, if […]

Private Vendor Principle: How to Organise a State-Aid-Free Sale of Public Assets

Introduction   The private investor principle (PIP) or market economy investor principle is well established in the case law. A closely related concept is the private vendor principle (PVP). The PIP applies when a public authority assumes risk by investing in an undertaking, for example through the purchase of shares, injection of capital, granting of a loan or provision of […]

A Public Authority Can Behave Like a Private Investor even when the Beneficiary Has Little Prospect of Future Profitability

Introduction When a public authority invests in an undertaking, it must earn a return at market rates, otherwise the investment is State aid. Normally, it is much easier to prove that the investment has a reasonable prospect of profitability and, therefore, that it would be made by a private investor, when the recipient undertaking is in a good financial situation. […]

A Case of Public Funding of Infrastructure that Does not Constitute State Aid: But Many Questions Remain

Introduction After the landmark judgment in Leipzig-Halle, public authorities are justifiably careful to ensure that the infrastructure they fund is either free of State aid or, if that is unavoidable, that the State aid is compatible with the internal market. Recent cases have shown that there are two problems in this regard. First, public authorities must verify whether the organisations […]

The Offsetting of a Structural Disadvantage Is still State Aid

Introduction Normally it is conceptually and technically fairly easy to determine whether an undertaking benefits from a public measure. However, this task becomes considerably more difficult in two situations: i) when a public authority claims that it acts like a private investor and ii) when a public measure is intended to compensate for a disadvantage suffered by the beneficiary undertaking […]

Privatisation of Aeroportos de Portugal: Conflict between the National Economic Adjustment Programme and State Aid Rules?

Background Portugal notified to the Commission the privatisation of the “Aeroportos de Portugal” [ANA] for reasons of legal certainty [SA.36197].[1] ANA is the operator of most Portuguese airports. It manages eight airports across Portugal (Lisbon, Porto, Faro, Beja, and 4 airports in the Azores) that account for the vast majority of the commercial air traffic in the country. It is worth […]

Public Support without State Aid

Public measures that do not constitute state aid are as interesting as the measures that do provide aid. This posting examines two measures that have been found not to fall within the scope of Article 107(1) TFEU because they do not satisfy one or more of the four criteria laid down in that Article. Non-economic activity: Commission Decision SA.35529 on […]

PuState Resources and Payments between Undertakings

Introduction A couple of years ago, the big issue in State aid law was the concept of selectivity. The judgments in the British Aggregates and Dutch NOx cases expanded, elaborated, and, some argued, convoluted the criteria for determining whether a measure was selective or not. This year, the big issue for sure is the concept of State resources. First came […]

Fiscal Leveraging: Donations and State Aid for Culture and Sports

Introduction In this blog I examine primarily a Dutch measure that supports cultural institutions by providing tax incentives to individuals and corporations to make donations to those institutions. This is an unusual construction because the direct beneficiaries are different from the indirect beneficiaries which, however, are the main targets of the measure. This construction has been used rather extensively in […]

Ex Post Evaluation of State Aid: A New Instrument

Introduction: The need for evaluation The State Aid Modernisation that was launched by the European Commission in May 2012 aims primarily to channel State aid to remedying genuine market failure. Subsequent policy documents have all been based on this underlying aim: to ensure that State aid is truly needed and effective in addressing market failure. The need and effectiveness of […]

- state aid ×

The Private Investor Principle Applied to Loans [Commission Decision 2013/528]

Introduction The State aid issue in this case is relatively straightforward. Nauta, a Polish shipyard, received a two-year loan from IDA, the state-owned Polish Investment Agency. Because Nauta ran into some financial trouble, the loan was extended for another two years. In Decision 2013/528, the Commission had to examine two questions: First, did the initial loan market conform? Second, if […]

Private Vendor Principle: How to Organise a State-Aid-Free Sale of Public Assets

Introduction   The private investor principle (PIP) or market economy investor principle is well established in the case law. A closely related concept is the private vendor principle (PVP). The PIP applies when a public authority assumes risk by investing in an undertaking, for example through the purchase of shares, injection of capital, granting of a loan or provision of […]

A Public Authority Can Behave Like a Private Investor even when the Beneficiary Has Little Prospect of Future Profitability

Introduction When a public authority invests in an undertaking, it must earn a return at market rates, otherwise the investment is State aid. Normally, it is much easier to prove that the investment has a reasonable prospect of profitability and, therefore, that it would be made by a private investor, when the recipient undertaking is in a good financial situation. […]

A Case of Public Funding of Infrastructure that Does not Constitute State Aid: But Many Questions Remain

Introduction After the landmark judgment in Leipzig-Halle, public authorities are justifiably careful to ensure that the infrastructure they fund is either free of State aid or, if that is unavoidable, that the State aid is compatible with the internal market. Recent cases have shown that there are two problems in this regard. First, public authorities must verify whether the organisations […]

The Offsetting of a Structural Disadvantage Is still State Aid

Introduction Normally it is conceptually and technically fairly easy to determine whether an undertaking benefits from a public measure. However, this task becomes considerably more difficult in two situations: i) when a public authority claims that it acts like a private investor and ii) when a public measure is intended to compensate for a disadvantage suffered by the beneficiary undertaking […]

Privatisation of Aeroportos de Portugal: Conflict between the National Economic Adjustment Programme and State Aid Rules?

Background Portugal notified to the Commission the privatisation of the “Aeroportos de Portugal” [ANA] for reasons of legal certainty [SA.36197].[1] ANA is the operator of most Portuguese airports. It manages eight airports across Portugal (Lisbon, Porto, Faro, Beja, and 4 airports in the Azores) that account for the vast majority of the commercial air traffic in the country. It is worth […]

Public Support without State Aid

Public measures that do not constitute state aid are as interesting as the measures that do provide aid. This posting examines two measures that have been found not to fall within the scope of Article 107(1) TFEU because they do not satisfy one or more of the four criteria laid down in that Article. Non-economic activity: Commission Decision SA.35529 on […]

PuState Resources and Payments between Undertakings

Introduction A couple of years ago, the big issue in State aid law was the concept of selectivity. The judgments in the British Aggregates and Dutch NOx cases expanded, elaborated, and, some argued, convoluted the criteria for determining whether a measure was selective or not. This year, the big issue for sure is the concept of State resources. First came […]

Fiscal Leveraging: Donations and State Aid for Culture and Sports

Introduction In this blog I examine primarily a Dutch measure that supports cultural institutions by providing tax incentives to individuals and corporations to make donations to those institutions. This is an unusual construction because the direct beneficiaries are different from the indirect beneficiaries which, however, are the main targets of the measure. This construction has been used rather extensively in […]

Ex Post Evaluation of State Aid: A New Instrument

Introduction: The need for evaluation The State Aid Modernisation that was launched by the European Commission in May 2012 aims primarily to channel State aid to remedying genuine market failure. Subsequent policy documents have all been based on this underlying aim: to ensure that State aid is truly needed and effective in addressing market failure. The need and effectiveness of […]

- state aid ×

The Private Investor Principle Applied to Loans [Commission Decision 2013/528]

Introduction The State aid issue in this case is relatively straightforward. Nauta, a Polish shipyard, received a two-year loan from IDA, the state-owned Polish Investment Agency. Because Nauta ran into some financial trouble, the loan was extended for another two years. In Decision 2013/528, the Commission had to examine two questions: First, did the initial loan market conform? Second, if […]

Private Vendor Principle: How to Organise a State-Aid-Free Sale of Public Assets

Introduction   The private investor principle (PIP) or market economy investor principle is well established in the case law. A closely related concept is the private vendor principle (PVP). The PIP applies when a public authority assumes risk by investing in an undertaking, for example through the purchase of shares, injection of capital, granting of a loan or provision of […]

A Public Authority Can Behave Like a Private Investor even when the Beneficiary Has Little Prospect of Future Profitability

Introduction When a public authority invests in an undertaking, it must earn a return at market rates, otherwise the investment is State aid. Normally, it is much easier to prove that the investment has a reasonable prospect of profitability and, therefore, that it would be made by a private investor, when the recipient undertaking is in a good financial situation. […]

A Case of Public Funding of Infrastructure that Does not Constitute State Aid: But Many Questions Remain

Introduction After the landmark judgment in Leipzig-Halle, public authorities are justifiably careful to ensure that the infrastructure they fund is either free of State aid or, if that is unavoidable, that the State aid is compatible with the internal market. Recent cases have shown that there are two problems in this regard. First, public authorities must verify whether the organisations […]

The Offsetting of a Structural Disadvantage Is still State Aid

Introduction Normally it is conceptually and technically fairly easy to determine whether an undertaking benefits from a public measure. However, this task becomes considerably more difficult in two situations: i) when a public authority claims that it acts like a private investor and ii) when a public measure is intended to compensate for a disadvantage suffered by the beneficiary undertaking […]

Privatisation of Aeroportos de Portugal: Conflict between the National Economic Adjustment Programme and State Aid Rules?

Background Portugal notified to the Commission the privatisation of the “Aeroportos de Portugal” [ANA] for reasons of legal certainty [SA.36197].[1] ANA is the operator of most Portuguese airports. It manages eight airports across Portugal (Lisbon, Porto, Faro, Beja, and 4 airports in the Azores) that account for the vast majority of the commercial air traffic in the country. It is worth […]

Public Support without State Aid

Public measures that do not constitute state aid are as interesting as the measures that do provide aid. This posting examines two measures that have been found not to fall within the scope of Article 107(1) TFEU because they do not satisfy one or more of the four criteria laid down in that Article. Non-economic activity: Commission Decision SA.35529 on […]

PuState Resources and Payments between Undertakings

Introduction A couple of years ago, the big issue in State aid law was the concept of selectivity. The judgments in the British Aggregates and Dutch NOx cases expanded, elaborated, and, some argued, convoluted the criteria for determining whether a measure was selective or not. This year, the big issue for sure is the concept of State resources. First came […]

Fiscal Leveraging: Donations and State Aid for Culture and Sports

Introduction In this blog I examine primarily a Dutch measure that supports cultural institutions by providing tax incentives to individuals and corporations to make donations to those institutions. This is an unusual construction because the direct beneficiaries are different from the indirect beneficiaries which, however, are the main targets of the measure. This construction has been used rather extensively in […]

Ex Post Evaluation of State Aid: A New Instrument

Introduction: The need for evaluation The State Aid Modernisation that was launched by the European Commission in May 2012 aims primarily to channel State aid to remedying genuine market failure. Subsequent policy documents have all been based on this underlying aim: to ensure that State aid is truly needed and effective in addressing market failure. The need and effectiveness of […]

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