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.

Subscribe now!

State Aid Uncovered ×

Compensation Awarded to Two Dutch Coal-Fired Electricity Plants Is not State Aid

Executive Summary: Compensation for damage caused by the state does not confer an advantage and, therefore, does not constitute state aid. Compensation that does not constitute state aid must comply with the general national rules on liability.   Table of Contents: Introduction Compensation in the context of the Dutch legal framework Determination of the compensation Commission assessment The compensation amount […]

Compensation for Withdrawing Agricultural Land from Production 

Executive Summary:  Compensation to undertakings that is not available under normal market conditions confers an advantage in the meaning of Article 107(1) TFEU.  Compensation for damage caused by public authorities which bear liable under the general rules of liability in each Member State does not constitute state aid.  Compensation can cover both loss of property and loss of income.    […]

Deviations from the EU’s VAT Rules May Constitute State Aid 

Executive Summary: Exemptions mandated by the VAT Directive do not constitute state aid because they cannot be imputed to Member States.  Exemptions which are wider than those mandated by the VAT Directive are imputed to Member States and may constitute state aid.  An exemption from output VAT confers a selective advantage even if input VAT cannot be deducted by undertakings. […]

The Use of a Competitive Procedure Ensures that the Sale of a State Asset Is Free of State Aid

Executive Summary: The sale of a state asset through an open, transparent, non-discriminatory and unconditional procedure is free of state aid. The price paid by the highest bidder is the market price. The advantage embedded in the granting of a free concession may be offset by higher taxes.   Table of Contents:  Introduction The alleged state aid Commission assessment on […]

Renovation of an Olympic Stadium – PART II

Executive Summary Commercial exploitation of a sports infrastructure is economic in nature. The operator of such infrastructure is an undertaking regardless of whether it is owned by the state, it is not-for-profit, it has certain public interest tasks, its fees are regulated and its revenue is reinvested in the infrastructure. Providing access to the infrastructure to amateur sport clubs and […]

Renovation of an Olympic Stadium – PART I

Executive Summary Commercial exploitation of a sports infrastructure is economic in nature. The operator of such infrastructure is an undertaking regardless of whether it is owned by the state, it is not-for-profit, it has certain public interest tasks, its fees are regulated and its revenue is reinvested in the infrastructure. Providing access to the infrastructure to amateur sport clubs and […]

Green Economy Hub

A municipality that develops commercial infrastructure engages in an economic activity.  A municipality that finances the development of commercially used infrastructure may grant state aid to itself.  The selection of the operator of commercial infrastructure on the basis of a competitive procedure eliminates any advantage for the operator.  The users of a commercially operated infrastructure do not receive state aid if they pay prices at market […]

Transfer of Public Land Free of State Aid

For valuation of public land to be credible, it should preferably be carried out by external experts. Introduction  In December 2011, the Commission asked the Spanish authorities for information on alleged state aid in the transfer of public land from Madrid City Council to Real Madrid football club. In December 2013, the Commission decided to open the formal investigation procedure […]

State Aid to Support a Technology Hub

Introduction  As part of the digital transition, Member States try to revitalise old industrial regions. A case in point is a recent Commission decision on the establishment of a technology hub in Poland’s former coal mining region of Katowice [SA.114301].1  The purpose of the Polish measure was to incentivise the development of new skills in the region. The aided project is a […]

No Imputability to the State of Investment by a State Enterprise

Introduction  The past three articles have dealt with cases where the Commission or an EU court concluded that they were free of state aid or there were doubts as to whether they constituted state aid.  Today’s article reviews another case concerning a state intervention that was free of state aid. In decision SA.100862, the Commission found that transfer of state assets to a Finnish undertaking did not confer an advantage […]

State Aid Uncovered ×

Compensation Awarded to Two Dutch Coal-Fired Electricity Plants Is not State Aid

Executive Summary: Compensation for damage caused by the state does not confer an advantage and, therefore, does not constitute state aid. Compensation that does not constitute state aid must comply with the general national rules on liability.   Table of Contents: Introduction Compensation in the context of the Dutch legal framework Determination of the compensation Commission assessment The compensation amount […]

Compensation for Withdrawing Agricultural Land from Production 

Executive Summary:  Compensation to undertakings that is not available under normal market conditions confers an advantage in the meaning of Article 107(1) TFEU.  Compensation for damage caused by public authorities which bear liable under the general rules of liability in each Member State does not constitute state aid.  Compensation can cover both loss of property and loss of income.    […]

Deviations from the EU’s VAT Rules May Constitute State Aid 

Executive Summary: Exemptions mandated by the VAT Directive do not constitute state aid because they cannot be imputed to Member States.  Exemptions which are wider than those mandated by the VAT Directive are imputed to Member States and may constitute state aid.  An exemption from output VAT confers a selective advantage even if input VAT cannot be deducted by undertakings. […]

The Use of a Competitive Procedure Ensures that the Sale of a State Asset Is Free of State Aid

Executive Summary: The sale of a state asset through an open, transparent, non-discriminatory and unconditional procedure is free of state aid. The price paid by the highest bidder is the market price. The advantage embedded in the granting of a free concession may be offset by higher taxes.   Table of Contents:  Introduction The alleged state aid Commission assessment on […]

Renovation of an Olympic Stadium – PART II

Executive Summary Commercial exploitation of a sports infrastructure is economic in nature. The operator of such infrastructure is an undertaking regardless of whether it is owned by the state, it is not-for-profit, it has certain public interest tasks, its fees are regulated and its revenue is reinvested in the infrastructure. Providing access to the infrastructure to amateur sport clubs and […]

Renovation of an Olympic Stadium – PART I

Executive Summary Commercial exploitation of a sports infrastructure is economic in nature. The operator of such infrastructure is an undertaking regardless of whether it is owned by the state, it is not-for-profit, it has certain public interest tasks, its fees are regulated and its revenue is reinvested in the infrastructure. Providing access to the infrastructure to amateur sport clubs and […]

Green Economy Hub

A municipality that develops commercial infrastructure engages in an economic activity.  A municipality that finances the development of commercially used infrastructure may grant state aid to itself.  The selection of the operator of commercial infrastructure on the basis of a competitive procedure eliminates any advantage for the operator.  The users of a commercially operated infrastructure do not receive state aid if they pay prices at market […]

Transfer of Public Land Free of State Aid

For valuation of public land to be credible, it should preferably be carried out by external experts. Introduction  In December 2011, the Commission asked the Spanish authorities for information on alleged state aid in the transfer of public land from Madrid City Council to Real Madrid football club. In December 2013, the Commission decided to open the formal investigation procedure […]

State Aid to Support a Technology Hub

Introduction  As part of the digital transition, Member States try to revitalise old industrial regions. A case in point is a recent Commission decision on the establishment of a technology hub in Poland’s former coal mining region of Katowice [SA.114301].1  The purpose of the Polish measure was to incentivise the development of new skills in the region. The aided project is a […]

No Imputability to the State of Investment by a State Enterprise

Introduction  The past three articles have dealt with cases where the Commission or an EU court concluded that they were free of state aid or there were doubts as to whether they constituted state aid.  Today’s article reviews another case concerning a state intervention that was free of state aid. In decision SA.100862, the Commission found that transfer of state assets to a Finnish undertaking did not confer an advantage […]

State Aid Uncovered ×

Compensation Awarded to Two Dutch Coal-Fired Electricity Plants Is not State Aid

Executive Summary: Compensation for damage caused by the state does not confer an advantage and, therefore, does not constitute state aid. Compensation that does not constitute state aid must comply with the general national rules on liability.   Table of Contents: Introduction Compensation in the context of the Dutch legal framework Determination of the compensation Commission assessment The compensation amount […]

Compensation for Withdrawing Agricultural Land from Production 

Executive Summary:  Compensation to undertakings that is not available under normal market conditions confers an advantage in the meaning of Article 107(1) TFEU.  Compensation for damage caused by public authorities which bear liable under the general rules of liability in each Member State does not constitute state aid.  Compensation can cover both loss of property and loss of income.    […]

Deviations from the EU’s VAT Rules May Constitute State Aid 

Executive Summary: Exemptions mandated by the VAT Directive do not constitute state aid because they cannot be imputed to Member States.  Exemptions which are wider than those mandated by the VAT Directive are imputed to Member States and may constitute state aid.  An exemption from output VAT confers a selective advantage even if input VAT cannot be deducted by undertakings. […]

The Use of a Competitive Procedure Ensures that the Sale of a State Asset Is Free of State Aid

Executive Summary: The sale of a state asset through an open, transparent, non-discriminatory and unconditional procedure is free of state aid. The price paid by the highest bidder is the market price. The advantage embedded in the granting of a free concession may be offset by higher taxes.   Table of Contents:  Introduction The alleged state aid Commission assessment on […]

Renovation of an Olympic Stadium – PART II

Executive Summary Commercial exploitation of a sports infrastructure is economic in nature. The operator of such infrastructure is an undertaking regardless of whether it is owned by the state, it is not-for-profit, it has certain public interest tasks, its fees are regulated and its revenue is reinvested in the infrastructure. Providing access to the infrastructure to amateur sport clubs and […]

Renovation of an Olympic Stadium – PART I

Executive Summary Commercial exploitation of a sports infrastructure is economic in nature. The operator of such infrastructure is an undertaking regardless of whether it is owned by the state, it is not-for-profit, it has certain public interest tasks, its fees are regulated and its revenue is reinvested in the infrastructure. Providing access to the infrastructure to amateur sport clubs and […]

Green Economy Hub

A municipality that develops commercial infrastructure engages in an economic activity.  A municipality that finances the development of commercially used infrastructure may grant state aid to itself.  The selection of the operator of commercial infrastructure on the basis of a competitive procedure eliminates any advantage for the operator.  The users of a commercially operated infrastructure do not receive state aid if they pay prices at market […]

Transfer of Public Land Free of State Aid

For valuation of public land to be credible, it should preferably be carried out by external experts. Introduction  In December 2011, the Commission asked the Spanish authorities for information on alleged state aid in the transfer of public land from Madrid City Council to Real Madrid football club. In December 2013, the Commission decided to open the formal investigation procedure […]

State Aid to Support a Technology Hub

Introduction  As part of the digital transition, Member States try to revitalise old industrial regions. A case in point is a recent Commission decision on the establishment of a technology hub in Poland’s former coal mining region of Katowice [SA.114301].1  The purpose of the Polish measure was to incentivise the development of new skills in the region. The aided project is a […]

No Imputability to the State of Investment by a State Enterprise

Introduction  The past three articles have dealt with cases where the Commission or an EU court concluded that they were free of state aid or there were doubts as to whether they constituted state aid.  Today’s article reviews another case concerning a state intervention that was free of state aid. In decision SA.100862, the Commission found that transfer of state assets to a Finnish undertaking did not confer an advantage […]

Subscribe to our newsletter for updates on legal developments, upcoming conferences, workshops, and publications in your areas of interest.

Newsletter: Subscribe now