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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recapitalisation ×

19. November 2019  |   State Aid Uncovered by Phedon Nicolaides

Compensation to a Toll Road Operator
State Aid Blogs - StateAidHub blogpost48 toll road motorways Poland obligations StateAid
Contractual obligation to provide compensation that does not exceed the loss of income is not State aid. Introduction When is a company entitled to compensation by the state? The easy answer is “when the state is liable for damage”. However, it may be possible for a company to claim compensation from the state when the state has assumed contractual obligations. […]
read more
No Comments
3. April 2018  |   State Aid Uncovered by Phedon Nicolaides

Advantage through Contracts
State Aid Blogs - ah life rd2jRzEum9g unsplash
A price below the regulated normal price confers an advantage. Competition is distorted even when the aid recipient does not expand its operations.   Introduction An undertaking can obtain an advantage without receiving an outright grant. The advantage may be hidden in a contract for the supply of an essential input at reduced prices. This is the issue tackled by […]
read more
4 Comments
1. November 2016  |   State Aid Uncovered by Phedon Nicolaides

Turnover Taxes Can be Incompatible with the Internal Market
State Aid Blogs - m 12 1
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, […]
read more
No Comments
23. March 2016  |   State Aid Uncovered by Phedon Nicolaides

Compensatory Payments Can still Confer an Advantage
State Aid Blogs - m 33 1
Membership of a compulsory insurance scheme can still confer an advantage to participating undertakings. Private contributions can still become state resources if they are paid into a fund that is managed by the state. Member States always have the option to ask for a measure to be assessed directly on the basis of the Treaty but they have to justify […]
read more
No Comments
2. February 2016  |   State Aid Uncovered by Phedon Nicolaides

Possible Advantage from the Exclusive Use of Public-Funded Infrastructure
State Aid Blogs - m 37
The exclusive use of a public asset or an asset funded by public money may confer an advantage in the meaning of Article 107(1) TFEU if several competitors express their interest to use the same asset.   Introduction As public authorities are becoming more aware that placing public assets at the disposal of undertakings can involve State aid, they increasingly […]
read more
No Comments
26. January 2016  |   State Aid Uncovered by Phedon Nicolaides

Nature Conservation as a Service of General Economic Interest
State Aid Blogs - m 38
Public funding of non-economic activities does not create State aid problems when any related economic activities are clearly separated. The 2012 SGEI package can apply retroactively.   Introduction Member States of the European Union are free to designate the services they consider to be in the general economic interest. However, the wide discretion they enjoy in this respect falls under […]
read more
No Comments
12. January 2016  |   State Aid Uncovered by Phedon Nicolaides

Valuation of Assets Disposed by the State
State Aid Blogs - m 39
The value of an asset can be determined according to different methods. The main methods examine future income or comparable transactions or stock market valuation. Agreements between sellers and buyers that contain indemnification clauses or settle past claims do not reflect the true market value of the sold asset.   Introduction 9 December 2015, the General Court rendered its judgment […]
read more
No Comments
1. December 2015  |   State Aid Uncovered by Phedon Nicolaides

Investment and Operating Aid to Airports
State Aid Blogs - m 18
State aid is granted on the date the relevant public authority makes an irrevocable commitment to grant it or creates a legal entitlement for the beneficiary. Loans that impose public policy obligations on borrowers are not in conformity with the behaviour of a private investor.   Introduction This is a rather long article because it examines a rich case that […]
read more
No Comments
4. November 2015  |   State Aid Uncovered by Phedon Nicolaides

Economic Continuity and Recovery of Incompatible State Aid
State Aid Blogs - m 1 4
Incompatible State aid must be recovered from “successor” companies which acquire previously aided companies and enable the latter to continue their operations without any change.     Introduction In this article I review two decisions in which the Commission determined that incompatible aid had to be recovered from “successor” companies. Those were companies which had obtained the assets of the […]
read more
No Comments
20. October 2015  |   State Aid Uncovered by Phedon Nicolaides

Should State Aid that Is Passed on to Consumers Not be Recovered?
State Aid Blogs - 10.10. Stateaid deminimis calculator
Should the amount of recoverable aid be similarly reduced by the amount that is allegedly passed on to consumers? I will argue the case against it.   Introduction On 5 February 2015, the General Court, in cases T-473/12, Aer Lingus v Commission[1] and T-500/12, Ryanair v Commission[2], annulled Article 4 of Commission Decision 2013/199. In that decision the Commission found that a […]
read more
No Comments
Next Page »

recapitalisation ×

19. November 2019  |   State Aid Uncovered by Phedon Nicolaides

Compensation to a Toll Road Operator
State Aid Blogs - StateAidHub blogpost48 toll road motorways Poland obligations StateAid
Contractual obligation to provide compensation that does not exceed the loss of income is not State aid. Introduction When is a company entitled to compensation by the state? The easy answer is “when the state is liable for damage”. However, it may be possible for a company to claim compensation from the state when the state has assumed contractual obligations. […]
read more
No Comments
3. April 2018  |   State Aid Uncovered by Phedon Nicolaides

Advantage through Contracts
State Aid Blogs - ah life rd2jRzEum9g unsplash
A price below the regulated normal price confers an advantage. Competition is distorted even when the aid recipient does not expand its operations.   Introduction An undertaking can obtain an advantage without receiving an outright grant. The advantage may be hidden in a contract for the supply of an essential input at reduced prices. This is the issue tackled by […]
read more
4 Comments
1. November 2016  |   State Aid Uncovered by Phedon Nicolaides

Turnover Taxes Can be Incompatible with the Internal Market
State Aid Blogs - m 12 1
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, […]
read more
No Comments
23. March 2016  |   State Aid Uncovered by Phedon Nicolaides

Compensatory Payments Can still Confer an Advantage
State Aid Blogs - m 33 1
Membership of a compulsory insurance scheme can still confer an advantage to participating undertakings. Private contributions can still become state resources if they are paid into a fund that is managed by the state. Member States always have the option to ask for a measure to be assessed directly on the basis of the Treaty but they have to justify […]
read more
No Comments
2. February 2016  |   State Aid Uncovered by Phedon Nicolaides

Possible Advantage from the Exclusive Use of Public-Funded Infrastructure
State Aid Blogs - m 37
The exclusive use of a public asset or an asset funded by public money may confer an advantage in the meaning of Article 107(1) TFEU if several competitors express their interest to use the same asset.   Introduction As public authorities are becoming more aware that placing public assets at the disposal of undertakings can involve State aid, they increasingly […]
read more
No Comments
26. January 2016  |   State Aid Uncovered by Phedon Nicolaides

Nature Conservation as a Service of General Economic Interest
State Aid Blogs - m 38
Public funding of non-economic activities does not create State aid problems when any related economic activities are clearly separated. The 2012 SGEI package can apply retroactively.   Introduction Member States of the European Union are free to designate the services they consider to be in the general economic interest. However, the wide discretion they enjoy in this respect falls under […]
read more
No Comments
12. January 2016  |   State Aid Uncovered by Phedon Nicolaides

Valuation of Assets Disposed by the State
State Aid Blogs - m 39
The value of an asset can be determined according to different methods. The main methods examine future income or comparable transactions or stock market valuation. Agreements between sellers and buyers that contain indemnification clauses or settle past claims do not reflect the true market value of the sold asset.   Introduction 9 December 2015, the General Court rendered its judgment […]
read more
No Comments
1. December 2015  |   State Aid Uncovered by Phedon Nicolaides

Investment and Operating Aid to Airports
State Aid Blogs - m 18
State aid is granted on the date the relevant public authority makes an irrevocable commitment to grant it or creates a legal entitlement for the beneficiary. Loans that impose public policy obligations on borrowers are not in conformity with the behaviour of a private investor.   Introduction This is a rather long article because it examines a rich case that […]
read more
No Comments
4. November 2015  |   State Aid Uncovered by Phedon Nicolaides

Economic Continuity and Recovery of Incompatible State Aid
State Aid Blogs - m 1 4
Incompatible State aid must be recovered from “successor” companies which acquire previously aided companies and enable the latter to continue their operations without any change.     Introduction In this article I review two decisions in which the Commission determined that incompatible aid had to be recovered from “successor” companies. Those were companies which had obtained the assets of the […]
read more
No Comments
20. October 2015  |   State Aid Uncovered by Phedon Nicolaides

Should State Aid that Is Passed on to Consumers Not be Recovered?
State Aid Blogs - 10.10. Stateaid deminimis calculator
Should the amount of recoverable aid be similarly reduced by the amount that is allegedly passed on to consumers? I will argue the case against it.   Introduction On 5 February 2015, the General Court, in cases T-473/12, Aer Lingus v Commission[1] and T-500/12, Ryanair v Commission[2], annulled Article 4 of Commission Decision 2013/199. In that decision the Commission found that a […]
read more
No Comments
Next Page »

recapitalisation ×

19. November 2019  |   State Aid Uncovered by Phedon Nicolaides

Compensation to a Toll Road Operator
State Aid Blogs - StateAidHub blogpost48 toll road motorways Poland obligations StateAid
Contractual obligation to provide compensation that does not exceed the loss of income is not State aid. Introduction When is a company entitled to compensation by the state? The easy answer is “when the state is liable for damage”. However, it may be possible for a company to claim compensation from the state when the state has assumed contractual obligations. […]
read more
No Comments
3. April 2018  |   State Aid Uncovered by Phedon Nicolaides

Advantage through Contracts
State Aid Blogs - ah life rd2jRzEum9g unsplash
A price below the regulated normal price confers an advantage. Competition is distorted even when the aid recipient does not expand its operations.   Introduction An undertaking can obtain an advantage without receiving an outright grant. The advantage may be hidden in a contract for the supply of an essential input at reduced prices. This is the issue tackled by […]
read more
4 Comments
1. November 2016  |   State Aid Uncovered by Phedon Nicolaides

Turnover Taxes Can be Incompatible with the Internal Market
State Aid Blogs - m 12 1
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, […]
read more
No Comments
23. March 2016  |   State Aid Uncovered by Phedon Nicolaides

Compensatory Payments Can still Confer an Advantage
State Aid Blogs - m 33 1
Membership of a compulsory insurance scheme can still confer an advantage to participating undertakings. Private contributions can still become state resources if they are paid into a fund that is managed by the state. Member States always have the option to ask for a measure to be assessed directly on the basis of the Treaty but they have to justify […]
read more
No Comments
2. February 2016  |   State Aid Uncovered by Phedon Nicolaides

Possible Advantage from the Exclusive Use of Public-Funded Infrastructure
State Aid Blogs - m 37
The exclusive use of a public asset or an asset funded by public money may confer an advantage in the meaning of Article 107(1) TFEU if several competitors express their interest to use the same asset.   Introduction As public authorities are becoming more aware that placing public assets at the disposal of undertakings can involve State aid, they increasingly […]
read more
No Comments
26. January 2016  |   State Aid Uncovered by Phedon Nicolaides

Nature Conservation as a Service of General Economic Interest
State Aid Blogs - m 38
Public funding of non-economic activities does not create State aid problems when any related economic activities are clearly separated. The 2012 SGEI package can apply retroactively.   Introduction Member States of the European Union are free to designate the services they consider to be in the general economic interest. However, the wide discretion they enjoy in this respect falls under […]
read more
No Comments
12. January 2016  |   State Aid Uncovered by Phedon Nicolaides

Valuation of Assets Disposed by the State
State Aid Blogs - m 39
The value of an asset can be determined according to different methods. The main methods examine future income or comparable transactions or stock market valuation. Agreements between sellers and buyers that contain indemnification clauses or settle past claims do not reflect the true market value of the sold asset.   Introduction 9 December 2015, the General Court rendered its judgment […]
read more
No Comments
1. December 2015  |   State Aid Uncovered by Phedon Nicolaides

Investment and Operating Aid to Airports
State Aid Blogs - m 18
State aid is granted on the date the relevant public authority makes an irrevocable commitment to grant it or creates a legal entitlement for the beneficiary. Loans that impose public policy obligations on borrowers are not in conformity with the behaviour of a private investor.   Introduction This is a rather long article because it examines a rich case that […]
read more
No Comments
4. November 2015  |   State Aid Uncovered by Phedon Nicolaides

Economic Continuity and Recovery of Incompatible State Aid
State Aid Blogs - m 1 4
Incompatible State aid must be recovered from “successor” companies which acquire previously aided companies and enable the latter to continue their operations without any change.     Introduction In this article I review two decisions in which the Commission determined that incompatible aid had to be recovered from “successor” companies. Those were companies which had obtained the assets of the […]
read more
No Comments
20. October 2015  |   State Aid Uncovered by Phedon Nicolaides

Should State Aid that Is Passed on to Consumers Not be Recovered?
State Aid Blogs - 10.10. Stateaid deminimis calculator
Should the amount of recoverable aid be similarly reduced by the amount that is allegedly passed on to consumers? I will argue the case against it.   Introduction On 5 February 2015, the General Court, in cases T-473/12, Aer Lingus v Commission[1] and T-500/12, Ryanair v Commission[2], annulled Article 4 of Commission Decision 2013/199. In that decision the Commission found that a […]
read more
No Comments
Next Page »

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