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 ×

No Affectation of Trade

Public subsidies that do not affect cross-border trade either directly or indirectly do not constitute State aid in the meaning of Article 107(1). The direct trade effect is the impact on customers or users. The indirect trade effect is the impact on potential market entrants.   Introduction In April 2015, the Commission surprised us with seven decisions that concluded that […]

Private Investor v Private Creditor

When the state, acting as a private investor, seeks to recover past public investments, it must aim to maximise the recoverable amount. However, public funds that were granted as State aid must be ignored when the recoverable amount of past investments is calculated.   Introduction On 15 September 2016, the General Court rendered its judgment in case T‑386/14, FIH Holding v […]

1) Selectivity of Health Tests 2) Existing v New Aid in Preferential Electricity Tariffs

A measure can be selective even if it applies to a whole sector. An existing aid measure becomes new when a court extends it temporarily.   Introduction This article reviews two judgments: one on BSE tests in Belgium and another on preferential electricity tariffs in Greece. The issue at hand with respect to the BSE test was whether a measure […]

Turnover Taxes Can be Incompatible with the Internal Market

Progressive taxes levied on turnover can provide State aid that is incompatible with the internal market. Flat turnover taxes are proportional and therefore likely to be free of State aid.   Introduction Hungary wanted to levy two types of turnover taxes whose purpose was to protect health. The first tax was levied on tobacco products.[1] The Commission found, in decision 2016/1846, […]

Belgium’s Alternative Tax Regime for the Diamond Sector

Alternative tax regimes do not provide State aid as long as they raise the amount of tax paid and they are justified by the nature or general scheme of the normal system of taxation.   Introduction During the past three years, the Commission has been pursuing multinational companies that pay too little tax. Its main objection to the tax treatment […]

Compliance with State Aid Rules in Cohesion Policy: A Special Report of the European Court of Auditors

Control of State aid by national authorities needs to be strengthened. Typical mistake is to grant aid after a project has started or to subsidise ineligible costs. Aid measures for risk capital, SGEI and R&D appear to be particularly prone to error.    Introduction   On 4 October 2016, the European Court of Auditors [ECA] published a special report 24/2016 […]

Non-economic Activities, Absolute Impossibility to Recover Incompatible Aid and the Powers of National Courts

This article reviews three judgments that were all rendered on 15 September 2016. The first two concern the concept of economic activity. The third is about the rights of national courts to consider the correctness of Commission decisions. The Court of Justice has said clearly that national courts may not question Commission decisions.   Economic activity The first two cases […]

Compensation for the Extra Costs Imposed by Law

When the state imposes obligations which create extra costs for a single undertaking, that undertaking suffers a disadvantage in relation to its competitors. The extra costs are abnormal because normal costs are those borne by all competitors. Introduction On 14 July 2016, the General Court rendered its judgment in case T 143/12, Germany v Commission.1 The outcome was a victory for […]

Regional Aid for a Large Project subject to Individual Notification under the GBER

In the meaning of regional aid rules, diversification in a “new activity” is not the same as diversification in a “new product”. A “new process innovation” must be different, in the sense of being distinct from an existing process, must be substantial, in the sense that it covers the whole production process and must be new, in the sense that […]

Non-State Aid Assistance to Depositors and Customers of Banks

Public assistance to borrowers who cannot repay their loans does not constitute State aid if the beneficiaries are individuals. Public assistance to undertakings which cannot repay their loans does not constitute State aid if the amount of aid does not exceed the de minimis threshold. Any public funding of deposits which are transferred from ailing to healthy banks is not […]

State Aid Uncovered ×

No Affectation of Trade

Public subsidies that do not affect cross-border trade either directly or indirectly do not constitute State aid in the meaning of Article 107(1). The direct trade effect is the impact on customers or users. The indirect trade effect is the impact on potential market entrants.   Introduction In April 2015, the Commission surprised us with seven decisions that concluded that […]

Private Investor v Private Creditor

When the state, acting as a private investor, seeks to recover past public investments, it must aim to maximise the recoverable amount. However, public funds that were granted as State aid must be ignored when the recoverable amount of past investments is calculated.   Introduction On 15 September 2016, the General Court rendered its judgment in case T‑386/14, FIH Holding v […]

1) Selectivity of Health Tests 2) Existing v New Aid in Preferential Electricity Tariffs

A measure can be selective even if it applies to a whole sector. An existing aid measure becomes new when a court extends it temporarily.   Introduction This article reviews two judgments: one on BSE tests in Belgium and another on preferential electricity tariffs in Greece. The issue at hand with respect to the BSE test was whether a measure […]

Turnover Taxes Can be Incompatible with the Internal Market

Progressive taxes levied on turnover can provide State aid that is incompatible with the internal market. Flat turnover taxes are proportional and therefore likely to be free of State aid.   Introduction Hungary wanted to levy two types of turnover taxes whose purpose was to protect health. The first tax was levied on tobacco products.[1] The Commission found, in decision 2016/1846, […]

Belgium’s Alternative Tax Regime for the Diamond Sector

Alternative tax regimes do not provide State aid as long as they raise the amount of tax paid and they are justified by the nature or general scheme of the normal system of taxation.   Introduction During the past three years, the Commission has been pursuing multinational companies that pay too little tax. Its main objection to the tax treatment […]

Compliance with State Aid Rules in Cohesion Policy: A Special Report of the European Court of Auditors

Control of State aid by national authorities needs to be strengthened. Typical mistake is to grant aid after a project has started or to subsidise ineligible costs. Aid measures for risk capital, SGEI and R&D appear to be particularly prone to error.    Introduction   On 4 October 2016, the European Court of Auditors [ECA] published a special report 24/2016 […]

Non-economic Activities, Absolute Impossibility to Recover Incompatible Aid and the Powers of National Courts

This article reviews three judgments that were all rendered on 15 September 2016. The first two concern the concept of economic activity. The third is about the rights of national courts to consider the correctness of Commission decisions. The Court of Justice has said clearly that national courts may not question Commission decisions.   Economic activity The first two cases […]

Compensation for the Extra Costs Imposed by Law

When the state imposes obligations which create extra costs for a single undertaking, that undertaking suffers a disadvantage in relation to its competitors. The extra costs are abnormal because normal costs are those borne by all competitors. Introduction On 14 July 2016, the General Court rendered its judgment in case T 143/12, Germany v Commission.1 The outcome was a victory for […]

Regional Aid for a Large Project subject to Individual Notification under the GBER

In the meaning of regional aid rules, diversification in a “new activity” is not the same as diversification in a “new product”. A “new process innovation” must be different, in the sense of being distinct from an existing process, must be substantial, in the sense that it covers the whole production process and must be new, in the sense that […]

Non-State Aid Assistance to Depositors and Customers of Banks

Public assistance to borrowers who cannot repay their loans does not constitute State aid if the beneficiaries are individuals. Public assistance to undertakings which cannot repay their loans does not constitute State aid if the amount of aid does not exceed the de minimis threshold. Any public funding of deposits which are transferred from ailing to healthy banks is not […]

State Aid Uncovered ×

No Affectation of Trade

Public subsidies that do not affect cross-border trade either directly or indirectly do not constitute State aid in the meaning of Article 107(1). The direct trade effect is the impact on customers or users. The indirect trade effect is the impact on potential market entrants.   Introduction In April 2015, the Commission surprised us with seven decisions that concluded that […]

Private Investor v Private Creditor

When the state, acting as a private investor, seeks to recover past public investments, it must aim to maximise the recoverable amount. However, public funds that were granted as State aid must be ignored when the recoverable amount of past investments is calculated.   Introduction On 15 September 2016, the General Court rendered its judgment in case T‑386/14, FIH Holding v […]

1) Selectivity of Health Tests 2) Existing v New Aid in Preferential Electricity Tariffs

A measure can be selective even if it applies to a whole sector. An existing aid measure becomes new when a court extends it temporarily.   Introduction This article reviews two judgments: one on BSE tests in Belgium and another on preferential electricity tariffs in Greece. The issue at hand with respect to the BSE test was whether a measure […]

Turnover Taxes Can be Incompatible with the Internal Market

Progressive taxes levied on turnover can provide State aid that is incompatible with the internal market. Flat turnover taxes are proportional and therefore likely to be free of State aid.   Introduction Hungary wanted to levy two types of turnover taxes whose purpose was to protect health. The first tax was levied on tobacco products.[1] The Commission found, in decision 2016/1846, […]

Belgium’s Alternative Tax Regime for the Diamond Sector

Alternative tax regimes do not provide State aid as long as they raise the amount of tax paid and they are justified by the nature or general scheme of the normal system of taxation.   Introduction During the past three years, the Commission has been pursuing multinational companies that pay too little tax. Its main objection to the tax treatment […]

Compliance with State Aid Rules in Cohesion Policy: A Special Report of the European Court of Auditors

Control of State aid by national authorities needs to be strengthened. Typical mistake is to grant aid after a project has started or to subsidise ineligible costs. Aid measures for risk capital, SGEI and R&D appear to be particularly prone to error.    Introduction   On 4 October 2016, the European Court of Auditors [ECA] published a special report 24/2016 […]

Non-economic Activities, Absolute Impossibility to Recover Incompatible Aid and the Powers of National Courts

This article reviews three judgments that were all rendered on 15 September 2016. The first two concern the concept of economic activity. The third is about the rights of national courts to consider the correctness of Commission decisions. The Court of Justice has said clearly that national courts may not question Commission decisions.   Economic activity The first two cases […]

Compensation for the Extra Costs Imposed by Law

When the state imposes obligations which create extra costs for a single undertaking, that undertaking suffers a disadvantage in relation to its competitors. The extra costs are abnormal because normal costs are those borne by all competitors. Introduction On 14 July 2016, the General Court rendered its judgment in case T 143/12, Germany v Commission.1 The outcome was a victory for […]

Regional Aid for a Large Project subject to Individual Notification under the GBER

In the meaning of regional aid rules, diversification in a “new activity” is not the same as diversification in a “new product”. A “new process innovation” must be different, in the sense of being distinct from an existing process, must be substantial, in the sense that it covers the whole production process and must be new, in the sense that […]

Non-State Aid Assistance to Depositors and Customers of Banks

Public assistance to borrowers who cannot repay their loans does not constitute State aid if the beneficiaries are individuals. Public assistance to undertakings which cannot repay their loans does not constitute State aid if the amount of aid does not exceed the de minimis threshold. Any public funding of deposits which are transferred from ailing to healthy banks is not […]

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