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 […]
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.
State Aid Uncovered ×
4. November 2025 |
State Aid Uncovered
by Phedon Nicolaides
28. October 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
21. October 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
14. October 2025 |
State Aid Uncovered
by Phedon Nicolaides
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. […]
7. October 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
30. September 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
23. September 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
16. September 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
9. September 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
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
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 […]
State Aid Uncovered ×
4. November 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
28. October 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
21. October 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
14. October 2025 |
State Aid Uncovered
by Phedon Nicolaides
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. […]
7. October 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
30. September 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
23. September 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
16. September 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
9. September 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
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
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 […]
State Aid Uncovered ×
4. November 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
28. October 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
21. October 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
14. October 2025 |
State Aid Uncovered
by Phedon Nicolaides
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. […]
7. October 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
30. September 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
23. September 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
16. September 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
9. September 2025 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
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
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 […]