State Aid Uncovered Blog

A natural person is not an undertaking if he/she only has a controlling interest [e.g. majority of capital or voting rights] in an enterprise that engages in economic activities [i.e. it is an undertaking].  For a natural person to be considered to be an undertaking he/she must have both a controlling interest in an enterprise and be involved directly or indirectly in its management.  Exercising shareholder rights through participating and voting in the annual general meeting of shareholders does not constitute direct or […]

Introduction A perennial issue facing aid-granting authorities is whether the aid applicants are SMEs. A mis-assessment of the SME status can have dire consequences as demonstrated by a Commission decision in May 2025 concerning State aid granted by Germany to sawmill Abalon Hardwood Hessen [AHH] [SA.24030]. The Commission found the aid to be incompatible with the internal market and ordered […]

I am grateful to Peter Staviczky for comments on an earlier draft. A company that is owned by more than 25% by public bodies is not considered to be an SME, regardless of whether those public bodies actually exercise direct or indirect control. A public university can be a public body. Temporary Framework Update: Number of approved and published covid-19 […]