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

How the Infringement of Non-State aid Rules Can Affect the Compatibility of State aid

Introduction  It is now well-established that if a State aid measure is inherently or indissolubly linked to a an infringement of EU law outside the field of State aid it cannot be found to be compatible with the internal market.  As a result of the judgment of the General Court on 24 May 2023, in case T-268/21, Ryanair v European […]

A First Case of “Significant Market Power”

Introduction On the same day that the General Court ruled on the recapitalisation of SAS, it also ruled on the recapitalisation of Lufthansa in case T-34/21, Ryanair v European Commission.1 In the latter case, Ryanair sought the annulment of Commission decision SA.57153 of June 2020 by which the Commission approved injection of capital in Deutsche Lufthansa [DLH] of the amount […]

The 2020 Temporary State aid Framework and Recapitalisation of Undertakings

Introduction Ryanair has challenged many Commission decisions authorising State aid for its rivals. In 2021 and 2022, the General Court delivered 12 judgments concerning covid-19-related aid granted to other airlines. Of those 12 judgments, Ryanair temporarily won only three. Its wins were transient because the General Court suspended the annulment of the relevant Commission decisions, on the grounds that the […]

The Temporary Framework Allows Member States to Grant Aid only to SMEs 

Introduction  Although discrimination is in general prohibited in the EU, the fact remains that in the field of State aid Member States may grant State aid only to certain companies and may also decide how much aid to grant.  That the granting of State aid relies solely on the discretion of Member States has recently been re-confirmed by the General […]

Support for the Decarbonisation of the Electricity Sector through Storage Capacity

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Introduction Romania notified a scheme to support investment in large-scale electricity storage. The Commission approved it in decision SA.102761.[1] The scheme was part of the national Recovery and Resilience Plan [RRP] of Romania and was co-financed by the EU’s Recovery and Resilience Facility. By supporting investment in electricity storage, Romania aimed to reduce carbon emissions generated by the energy sector, […]

Development of Affordable Housing

Introduction The provision of social housing can be designated as a service of general economic interest and can be publicly funded under the Commission decision 2021/21. Member States have to show that there is a real social need and limit access to social housing to those persons who cannot afford what the market provides; i.e. low-income or vulnerable persons such […]

State aid Scoreboard, 2022

Introduction On 24 April 2023, the Commission released the 2022 version of the State aid Scoreboard which this year runs to a record 226 pages.[1] It covers the State aid that was granted in 2021 and contains information on both covid-19 measures and non-pandemic aid. Covid-19 related aid reached EUR 191 billion, or 57% of total aid expenditure. Non-crisis aid […]

German Risk Finance

Introduction Relatively few risk finance measures are notified to the Commission as Member States use Articles 21 and 22 of the GBER to support investments in SMEs and start-ups. However, the GBER excludes from its scope tax incentives for investments by undertakings. Tax incentives are possible only for investments by private investors. For this reason, Germany recently notified an aid […]

Imposition of Public Service Obligations through Extension of a Concession

Introduction It has recently been confirmed in the case law that Member States are not obliged to implement a procurement procedure when they grant State aid. This means, of course, that the public funds they provide do confer an advantage on their recipient undertakings. Compliance with public procurement procedures affects the compatibility of the aid with the internal market. Indeed, […]

Update of Commission Guiding Templates on Funding by the Recovery and Resilience Facility

Introduction In December 2020, the European Commission published “templates” to help Member States in the design of their plans that were to be financed by the Recovery and Resilience Facility [RRF]. The purpose of the templates was to identify whether those plans contained State aid and, if they did, whether the aid had to be notified or not. Soon afterwards […]

Imposition of Public Service Obligations through Extension of a Concession

Introduction It has recently been confirmed in the case law that Member States are not obliged to implement a procurement procedure when they grant State aid. This means, of course, that the public funds they provide do confer an advantage on their recipient undertakings. Compliance with public procurement procedures affects the compatibility of the aid with the internal market. Indeed, […]

Update of Commission Guiding Templates on Funding by the Recovery and Resilience Facility

Introduction In December 2020, the European Commission published “templates” to help Member States in the design of their plans that were to be financed by the Recovery and Resilience Facility [RRF]. The purpose of the templates was to identify whether those plans contained State aid and, if they did, whether the aid had to be notified or not. Soon afterwards […]

Compensation for Damage Caused by COVID-19 Combined with Rescue Aid

Introduction Member States are allowed to grant state to compensate undertakings for damage they suffer as a result of a natural disaster or exceptional occurrence. But, it is not always easy or possible to disentangle the damage caused by such an unforeseen event from losses caused by mismanagement or changes of market conditions. The art and science of calculating the […]

A More Comprehensive and Generous GBER

Introduction In a Communication that was published on 9 March 2023, the Commission announced extensive amendments to the GBER.[1] A 100-page annex to the Communication provided the legal text of the draft regulation that would revise Regulation 651/2014.[2] The amendments aim to: Ensure consistency between the GBER and new State aid guidelines. Bring the GBER in line with the EU […]

Charging Infrastructure for Electric Vehicles

Introduction As part of the EU’s Green Deal and the transition to a greener and most sustainable economy, the European Commission’s guidelines on State aid for climate, environmental protection and energy [CEEAG] also allow public support for the construction of energy infrastructures. In a recent decision, the Commission approved a German State aid scheme [SA.104749] for high-power charging infrastructure for […]

State Aid for the Resolution of a Polish bank

Introduction Whenever a bank seeks State aid, it must be considered as “failing or likely to fail”. A failing bank must be liquidated or resolved. Resolution means that the critical functions of the bank are preserved while the rest are wound down. Critical functions are those that impact significantly the real economy such as deposits, loans to SMEs or payments. […]

Tax Advantages and Competitive Bidding

Introduction Award of contracts or sale of state assets through competitive bidding procedures or tenders are presumed to result in a market prices and to confer no advantage to the winner in the meaning of Article 107(1) TFEU. However, on 25 January 2023, the General Court ruled, in case T-666/21, Società Navigazione Siciliana v European Commission, that certain tax advantages […]

Discretion of Public Authorities and Selectivity

Introduction On 2 February 2023, the Court of justice, in case C649/20 P, Spain and Others v European Commission, clarified the extent to which public authorities can implement general measures without in practice favouring any undertaking. The exercise of administrative discretion can turn a general measure into selective. The Court made a distinction between what may be called “related” or […]

The Selectivity and Profitability of Agreements between Airports and Airlines

Introduction Selectivity is a tricky issue. Even a measure that appears not to favour or exclude any undertaking may in practice prove to be selective if its effects favour certain undertakings over others that are in a comparable situation. In order to determine whether they are comparable it necessary to examine the objective of the measure. This is what the […]

The European Commission in not Responsible for the Bail-in of Investors in Banks

Introduction Investors in banks that failed or were restructured as a result of the financial crisis that broke out in 2008 have tried many times and have used many arguments to support their claims for compensation. None of them has so far succeeded before EU courts to prove that the Commission, or the ECB or the Council or the Eurogroup […]

Tax Rulings and State Aid: Now or Never

This comment looks at the Commission’s decisions to open in-depth investigations into the tax treatment of Apple, Starbucks and Fiat Finance and Trade by Ireland, The Netherlands and Luxembourg.   The European Commission has recently opened three in-depth investigations under Article 108(2) TFEU concerning tax rulings in Ireland, The Netherlands and Luxembourg with regard to the corporate income tax to be paid by Apple, Starbucks […]

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