State Aid Law Blog

State Aid Uncovered Blog

In Lexxion’s State Aid Uncovered blog, Prof. Phedon Nicolaides publishes weekly critical analyses of recent State aid judgments and decisions. Each post presents the key points of a court judgment or EU Commission decision, places it in the context of similar case law or practice, assesses the underlying reasoning and highlights any inconsistencies or contradictions.

Guest contributions from other State aid experts will also be published on the blog at irregular intervals to complement the content of the blog posts.

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4. November 2025  |   State Aid Uncovered by Phedon Nicolaides

The Commission Must Examine the Presence and Compatibility of Indirect State Aid
State Aid Blogs - State Aid Uncovered photos 74
Introduction  The Commission, in its 2016 Notice on the Notion of State Aid, made an important distinction between “indirect” beneficiaries and “secondary” beneficiaries of state aid. All state aid measures have secondary effects for the simple reason that direct aid recipients do not function in isolation from the rest of the economy. When they spend the aid they receive, third […]
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28. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Regulatory Acts such as the Granting of Betting Rights May Not Constitute State Aid
State Aid Blogs - State Aid Uncovered photos 73
Introduction Regulatory acts that confer a selective advantage without involving any transfer of state resources do not constitute State Aid. As is well established in the case law, Member States do not need to maximise revenue from granting licences, permits or authorisations when they act as regulators. Such licences, permits or authorisations may even be granted for free. Therefore, when […]
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21. October 2025  |   State Aid Uncovered by Phedon Nicolaides

State Aid for Decarbonisation of Steel Works
State Aid Blogs - Your paragraph text 1
Introduction  The decarbonisation of industry receives the second largest amount of environmental aid after reduction of environmental and energy taxes. Across different industrial sectors, the decarbonisation of steel production has probably attracted the largest amount of aid.  Recently, Sweden notified an individual measure to support investment in decarbonisation at SSAB, a steel manufacturer. The measure was approved by the Commission […]
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14. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation for the Net Extra Costs of Public Service Obligations
State Aid Blogs - State Aid Uncovered photos 72
Introduction On 3 September 2025, the General Court, in its judgment in case T‑784/22, Zásilkovna v Commission, provided useful guidance on the calculation of the compensation for the extra costs incurred by providers of Services of General Economic Interest [SGEI].[1] Zásilkovna sought the annulment of Commission decision 2023/232 concerning State aid SA.55208 implemented by the Czech Republic for Czech Post. […]
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7. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Extra Aid to a Project that Has Already Started
State Aid Blogs - State Aid Uncovered photos 70
Introduction State aid is not supposed to be granted to a project after work has already started because it lacks incentive effect. But when the project incurs unexpected costs, it is socially important so that it cannot be abandoned and without the aid it becomes commercially unviable, then the Commission may authorise additional aid. In March 2022, the Commission approved […]
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30. September 2025  |   State Aid Uncovered by Phedon Nicolaides

State Aid Measures May Not Infringe Non-State Aid Law
State Aid Blogs - State Aid Uncovered photos 1 1
Introduction It is now well established that the Commission may not authorise a state aid measure that infringes other provisions of EU law. However, those aspects or modalities of the measure that infringe other EU law must be indissolubly or inextricably linked to the object of the aid. On 11 September 2025, in case C-59/23 P, Austria v Commission, the […]
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23. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Auctions of State Aid for Renewable Hydrogen
State Aid Blogs - State Aid Uncovered photos 68
Introduction Spain notified to the Commission an aid scheme for the promotion of production of renewable hydrogen through electrolysis. The objective of the scheme was to contribute to the reduction of greenhouse gas [GHG] emissions [SA.116676].[1] As explained in the Commission decision authorising the aid, “(5) hydrogen can be used as a feedstock, a fuel or an energy carrier and […]
read more
No Comments
16. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Research and Economic Activities
State Aid Blogs - State Aid Uncovered photos 67
Introduction The Netherlands notified an unusual measure to the Commission. The measure concerned the construction and operation of a research reactor and of an isotope processing facility in Petten in north Netherlands – the so-called PALLAS project. Although there are many nuclear reactors in Europe, very few are used for research purposes and for the production of isotopes for medical […]
read more
No Comments
9. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Injection of State Capital that Is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 66
Introduction Directive 2014/59 on the recovery and resolution of financial institutions and Regulation 806/2014 on establishing the single resolution mechanism stipulate that if state aid is granted to a bank, it is automatically considered to be “failing or likely to fail” and it must be either resolved, if it is a systemic institution, or, otherwise, liquidated. The only exception is […]
read more
No Comments
2. September 2025  |   State Aid Uncovered by Phedon Nicolaides

The Limits of the Competence of National Courts to Review the Implementation of Approved Aid Schemes
State Aid Blogs - State Aid Uncovered photos 65
Introduction National courts have competence to determine the existence of State aid and whether State aid regulations are interpreted correctly by national authorities. In addition, national courts may decide whether approved aid schemes are implemented according to the terms authorised by the Commission. But national courts have no competence to determine the compatibility of State aid itself with the internal […]
read more
No Comments
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4. November 2025  |   State Aid Uncovered by Phedon Nicolaides

The Commission Must Examine the Presence and Compatibility of Indirect State Aid
State Aid Blogs - State Aid Uncovered photos 74
Introduction  The Commission, in its 2016 Notice on the Notion of State Aid, made an important distinction between “indirect” beneficiaries and “secondary” beneficiaries of state aid. All state aid measures have secondary effects for the simple reason that direct aid recipients do not function in isolation from the rest of the economy. When they spend the aid they receive, third […]
read more
No Comments
28. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Regulatory Acts such as the Granting of Betting Rights May Not Constitute State Aid
State Aid Blogs - State Aid Uncovered photos 73
Introduction Regulatory acts that confer a selective advantage without involving any transfer of state resources do not constitute State Aid. As is well established in the case law, Member States do not need to maximise revenue from granting licences, permits or authorisations when they act as regulators. Such licences, permits or authorisations may even be granted for free. Therefore, when […]
read more
No Comments
21. October 2025  |   State Aid Uncovered by Phedon Nicolaides

State Aid for Decarbonisation of Steel Works
State Aid Blogs - Your paragraph text 1
Introduction  The decarbonisation of industry receives the second largest amount of environmental aid after reduction of environmental and energy taxes. Across different industrial sectors, the decarbonisation of steel production has probably attracted the largest amount of aid.  Recently, Sweden notified an individual measure to support investment in decarbonisation at SSAB, a steel manufacturer. The measure was approved by the Commission […]
read more
No Comments
14. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation for the Net Extra Costs of Public Service Obligations
State Aid Blogs - State Aid Uncovered photos 72
Introduction On 3 September 2025, the General Court, in its judgment in case T‑784/22, Zásilkovna v Commission, provided useful guidance on the calculation of the compensation for the extra costs incurred by providers of Services of General Economic Interest [SGEI].[1] Zásilkovna sought the annulment of Commission decision 2023/232 concerning State aid SA.55208 implemented by the Czech Republic for Czech Post. […]
read more
No Comments
7. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Extra Aid to a Project that Has Already Started
State Aid Blogs - State Aid Uncovered photos 70
Introduction State aid is not supposed to be granted to a project after work has already started because it lacks incentive effect. But when the project incurs unexpected costs, it is socially important so that it cannot be abandoned and without the aid it becomes commercially unviable, then the Commission may authorise additional aid. In March 2022, the Commission approved […]
read more
No Comments
30. September 2025  |   State Aid Uncovered by Phedon Nicolaides

State Aid Measures May Not Infringe Non-State Aid Law
State Aid Blogs - State Aid Uncovered photos 1 1
Introduction It is now well established that the Commission may not authorise a state aid measure that infringes other provisions of EU law. However, those aspects or modalities of the measure that infringe other EU law must be indissolubly or inextricably linked to the object of the aid. On 11 September 2025, in case C-59/23 P, Austria v Commission, the […]
read more
No Comments
23. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Auctions of State Aid for Renewable Hydrogen
State Aid Blogs - State Aid Uncovered photos 68
Introduction Spain notified to the Commission an aid scheme for the promotion of production of renewable hydrogen through electrolysis. The objective of the scheme was to contribute to the reduction of greenhouse gas [GHG] emissions [SA.116676].[1] As explained in the Commission decision authorising the aid, “(5) hydrogen can be used as a feedstock, a fuel or an energy carrier and […]
read more
No Comments
16. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Research and Economic Activities
State Aid Blogs - State Aid Uncovered photos 67
Introduction The Netherlands notified an unusual measure to the Commission. The measure concerned the construction and operation of a research reactor and of an isotope processing facility in Petten in north Netherlands – the so-called PALLAS project. Although there are many nuclear reactors in Europe, very few are used for research purposes and for the production of isotopes for medical […]
read more
No Comments
9. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Injection of State Capital that Is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 66
Introduction Directive 2014/59 on the recovery and resolution of financial institutions and Regulation 806/2014 on establishing the single resolution mechanism stipulate that if state aid is granted to a bank, it is automatically considered to be “failing or likely to fail” and it must be either resolved, if it is a systemic institution, or, otherwise, liquidated. The only exception is […]
read more
No Comments
2. September 2025  |   State Aid Uncovered by Phedon Nicolaides

The Limits of the Competence of National Courts to Review the Implementation of Approved Aid Schemes
State Aid Blogs - State Aid Uncovered photos 65
Introduction National courts have competence to determine the existence of State aid and whether State aid regulations are interpreted correctly by national authorities. In addition, national courts may decide whether approved aid schemes are implemented according to the terms authorised by the Commission. But national courts have no competence to determine the compatibility of State aid itself with the internal […]
read more
No Comments
Next Page »

22. April 2025  |   Article 107(3)(b),Commission decision on SA.59158,discrimination,Guest State Aid Blog,proportionality,recapitalisation,Ryanair v Commission,T 398/21,undertaking in difficulty by Phedon Nicolaides

Member States Are not Obliged to Grant State Aid to all Undertakings Affected by a Serious Economic Disturbance
State Aid Blogs - State Aid Uncovered photos 47
Introduction On 2 April 2025, the General Court, in case T‑398/21, Ryanair v Commission, dismissed yet another appeal by Ryanair against a Commission decision on aid to airlines whose purpose was to redress the impact of covid-19.[1] In particular, Ryanair sought the annulment of Commission decision on SA.59158 concerning Polish State aid to LOT airlines. The aid was authorised by the […]
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25. September 2024  |   Guest State Aid Blog by Lexxion Publisher

The Cumulation of State Aid Granted by Different Member States — The Landwärme Case
State Aid Blogs - State Aid Uncovered photos 7
Guest State Aid Blog by Professor Leigh Hancher, Nicole Robins and Dr Philipp Schliffke[1] 1 Introduction The Renewable Energy Directive 2018/2001 (‘RED II’) states that ‘the promotion of the production and use of biomethane, its injection into a natural gas grid and cross-border trade create a need to ensure proper accounting of renewable energy as well as avoiding double incentives […]
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16. November 2023  |   Guest State Aid Blog by Michał Bernat

The Interplay of R&D Works and Formal Incentive Effect Rules
State Aid Blogs - Untitled design 12
The Interplay of R&D Works and Formal Incentive Effect Rules Michał Bernat.1 The issue mentioned in the title appears at first sight rather uncontroversial, as it is instinctively understood that research and development (R&D) works do not form part of an investment towards which they are directed, but this brief note raises certain issues arising in that respect which have […]
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30. March 2023  |   Guest State Aid Blog by Lexxion Publisher

A Visionary XXX FIDE Congress Approaching
State Aid Blogs - iuiiiiiiiiiiiiiiiii
We’re happy to announce that Lexxion publisher has become a media partner to the FIDE Congress, one of the most distinguished events on EU law. Of particular interest for the readers of the State Aid blog and the EStAL quarterly is the second topic of the congress, dedicated to the new geopolitical dimension of the EU competition and trade policies. […]
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30. June 2022  |   Guest State Aid Blog by Lexxion Publisher

Further Views on Editorial by Andreas Bartosch (EStAL 1/2022, 1)
State Aid Blogs - Guest posts 3
Reading the Editorial by Andreas Bartosch (EStAL 1/2022, 1), I feel tempted – not to worship Satan or the GBER, but to add some more colours to the picture drawn up by the esteemed colleague. It is true that the Block Exemption Regulations were intended to save the Commission Services from „lästigem Alltagsgerümpel“ (“boring routine rubbish”, as Andreas Bartosch dubbed […]
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27. May 2022  |   Guest State Aid Blog by Lexxion Publisher

How to approach the risk of carbon lock-in effects in state aid analysis?
State Aid Blogs - State Aid Uncovered SM posts 8
A recent FSR Debate[1] held on 4 May examined the key question of how policymakers and regulators can avoid carbon lock-in jeopardising the attainment of the European Union’s ambitious energy and climate targets. Carbon lock-in refers to situations where emissions-intensive energy assets continue to be used even when low-carbon and socially more beneficial assets are available.  This is a controversial […]
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19. August 2021  |   Guest State Aid Blog by Lexxion Publisher

The European Commission’s Opening Decision in the German Lignite Phase-Out Case – Part II.
State Aid Blogs - koenig2 dominik vanyi Mk2ls9UBO2E unsplash
The article is based on a legal opinion, that was given to LEAG. Doubts regarding the existence of an advantage – continued Compensation amounts based on a MEO settlement agreement An essential component of the compensation covering the full scope of any damages caused to the operators affected by the early closure is also the avoidance of legal and factual […]
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12. August 2021  |   Guest State Aid Blog by Lexxion Publisher

The European Commission’s Opening Decision in the German Lignite Phase-Out Case – Part I.
State Aid Blogs - koenig1 artyom korshunov NWByxwVN J0 unsplash
The article is based on a legal opinion, that was given to LEAG. Introduction The European Green Deal envisages a clean and decarbonised energy sector with net-zero greenhouse gas emissions by 2050.[1] These ambitious objectives entrust the Member States with enormous tasks in connection with the transformation process, which must always be designed in a proportionate manner. For this purpose, […]
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29. July 2021  |   Guest State Aid Blog by Lexxion Publisher

Pre- Notifications, Preliminary Investigations and the Rights of Third Parties in State Aid Procedures – Beware of the Black Hole!
State Aid Blogs - nicholas doherty pONBhDyOFoM unsplash
The persistently cautious approach of the Court of Justice of the European Union (CJEU) to recognizing any really meaningful rights for third parties in State aid proceedings before the European Commission as well as in judicial proceedings is well-known and frequently criticized. With the recent adoption of the new Climate Law at the end of June and the official launch […]
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15. July 2021  |   Guest State Aid Blog by Lexxion Publisher

Public Support to Ultrafast Networks in the Italian NRRP
State Aid Blogs - sara gobbato post john barkiple l090uFWoPaI unsplash 1
As part of the investments to support the digitisation, innovation and competitiveness of the production system[1], the Italian Recovery and Resilience Plan (NRRP) has allocated €6.71 billion for interventions in favor of ultra-fast networks (ultra-broadband and 5G)[2]. The amount will be deployed by 2026 to achieve the objectives defined in the “Italian Strategy for ultra-broadband”[3] in accordance with the EU […]
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