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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Guest State Aid Blog ×

9. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation to the Operator of a Canal Lock that Provides Free Services May Constitute State Aid
State Aid Blogs - State Aid Uncovered photos 86
Introduction State aid rules are often perceived as straightjacket on Member State policies. Yet, the fundamental logic of the criteria used by the Commission and endorsed by EU courts to determine the compatibility of state aid force Member States to ask, at minimum, why they intervene, what is the most appropriate method of intervention and how much money is required […]
read more
No Comments
2. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Arbitration Decision that is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 82
Introduction Some cases seem to run forever. In 1960, Dimosia Epicheirisi Ilektrismou [DEI], the then sole supplier of electricity in Greece, entered into an agreement with Alouminion, an aluminium smelter, to provide electricity at preferential rates. The agreement expired in 2006. However, DEI and Alouminion, and its successor Mytilinaios and now Metlen, were not able to agree on a new […]
read more
No Comments
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
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
26. August 2025  |   State Aid Uncovered by Phedon Nicolaides

State-Aid Free Investment: Pari Passu or Benchmarked against Market Return
State Aid Blogs - State Aid Uncovered photos 19
Introduction The Finnish state owned 100% of four different companies which operated risk capital and private equity. One of those four companies was “Tesi”. Finland proposed the consolidation of the other three companies – with an estimated value of EUR 500 million – into Tesi. In addition, Finland intended to inject extra capital of EUR 300 million in Tesi. For […]
read more
No Comments
12. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Linked Enterprises through Relationships between Natural Persons
State Aid Blogs - State Aid Uncovered photos 63
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 […]
read more
No Comments
5. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Selectivity and the Reference System
State Aid Blogs - State Aid Uncovered photos 62
Introduction A public measure must be selective and satisfy the other criteria of Article 107(1) TFEU in order to be classified as State aid. The detection of selectivity requires a comparative exercise: a comparison of the aid beneficiary or beneficiaries with non-aid beneficiaries. But which non-aid beneficiaries to take into account. The answer is those who are in a similar […]
read more
No Comments
17. June 2025  |   State Aid Uncovered by Phedon Nicolaides

Coverage of Losses of a State-Owned Company
State Aid Blogs - State Aid Uncovered photos 55
Introduction Eu law does not prohibit states from owning or investing in companies [see Article 345 TFEU]. This means that when the state, as owner, makes payments to the companies it owns or loses part of its capital as a result of commercial losses, it does not grant to them State aid if such payments are mandated by law and […]
read more
No Comments
13. May 2025  |   State Aid Uncovered by Phedon Nicolaides

Tax Exemption of General Application
State Aid Blogs - State Aid Uncovered photos 50
Introduction In November 2014, the General Court in case T-219/10, Autogrill v Commission, held that a tax exemption for the acquisition of foreign undertakings did not constitute State aid because it did not exclude any undertaking from benefitting from it. This was because the beneficiaries could not be identified beforehand. However, on appeal, in December 2016, the Court of Justice […]
read more
No Comments
1. April 2025  |   State Aid Uncovered by Phedon Nicolaides

Subsidies to Incentivise Closure of Excess Capacity Are State Aid
State Aid Blogs - State Aid Uncovered photos 44
Introduction Very often Member States claim that subsidies they grant as compensation for the costs incurred by the recipient undertakings do not confer an advantage to them and therefore do not constitute State aid. The Court of Justice of the EU [CJEU] has on the whole rejected this claim even if the subsidy is less than the costs which are […]
read more
No Comments
Next Page »

Guest State Aid Blog ×

9. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation to the Operator of a Canal Lock that Provides Free Services May Constitute State Aid
State Aid Blogs - State Aid Uncovered photos 86
Introduction State aid rules are often perceived as straightjacket on Member State policies. Yet, the fundamental logic of the criteria used by the Commission and endorsed by EU courts to determine the compatibility of state aid force Member States to ask, at minimum, why they intervene, what is the most appropriate method of intervention and how much money is required […]
read more
No Comments
2. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Arbitration Decision that is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 82
Introduction Some cases seem to run forever. In 1960, Dimosia Epicheirisi Ilektrismou [DEI], the then sole supplier of electricity in Greece, entered into an agreement with Alouminion, an aluminium smelter, to provide electricity at preferential rates. The agreement expired in 2006. However, DEI and Alouminion, and its successor Mytilinaios and now Metlen, were not able to agree on a new […]
read more
No Comments
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
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
26. August 2025  |   State Aid Uncovered by Phedon Nicolaides

State-Aid Free Investment: Pari Passu or Benchmarked against Market Return
State Aid Blogs - State Aid Uncovered photos 19
Introduction The Finnish state owned 100% of four different companies which operated risk capital and private equity. One of those four companies was “Tesi”. Finland proposed the consolidation of the other three companies – with an estimated value of EUR 500 million – into Tesi. In addition, Finland intended to inject extra capital of EUR 300 million in Tesi. For […]
read more
No Comments
12. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Linked Enterprises through Relationships between Natural Persons
State Aid Blogs - State Aid Uncovered photos 63
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 […]
read more
No Comments
5. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Selectivity and the Reference System
State Aid Blogs - State Aid Uncovered photos 62
Introduction A public measure must be selective and satisfy the other criteria of Article 107(1) TFEU in order to be classified as State aid. The detection of selectivity requires a comparative exercise: a comparison of the aid beneficiary or beneficiaries with non-aid beneficiaries. But which non-aid beneficiaries to take into account. The answer is those who are in a similar […]
read more
No Comments
17. June 2025  |   State Aid Uncovered by Phedon Nicolaides

Coverage of Losses of a State-Owned Company
State Aid Blogs - State Aid Uncovered photos 55
Introduction Eu law does not prohibit states from owning or investing in companies [see Article 345 TFEU]. This means that when the state, as owner, makes payments to the companies it owns or loses part of its capital as a result of commercial losses, it does not grant to them State aid if such payments are mandated by law and […]
read more
No Comments
13. May 2025  |   State Aid Uncovered by Phedon Nicolaides

Tax Exemption of General Application
State Aid Blogs - State Aid Uncovered photos 50
Introduction In November 2014, the General Court in case T-219/10, Autogrill v Commission, held that a tax exemption for the acquisition of foreign undertakings did not constitute State aid because it did not exclude any undertaking from benefitting from it. This was because the beneficiaries could not be identified beforehand. However, on appeal, in December 2016, the Court of Justice […]
read more
No Comments
1. April 2025  |   State Aid Uncovered by Phedon Nicolaides

Subsidies to Incentivise Closure of Excess Capacity Are State Aid
State Aid Blogs - State Aid Uncovered photos 44
Introduction Very often Member States claim that subsidies they grant as compensation for the costs incurred by the recipient undertakings do not confer an advantage to them and therefore do not constitute State aid. The Court of Justice of the EU [CJEU] has on the whole rejected this claim even if the subsidy is less than the costs which are […]
read more
No Comments
Next Page »

Guest State Aid Blog ×

9. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation to the Operator of a Canal Lock that Provides Free Services May Constitute State Aid
State Aid Blogs - State Aid Uncovered photos 86
Introduction State aid rules are often perceived as straightjacket on Member State policies. Yet, the fundamental logic of the criteria used by the Commission and endorsed by EU courts to determine the compatibility of state aid force Member States to ask, at minimum, why they intervene, what is the most appropriate method of intervention and how much money is required […]
read more
No Comments
2. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Arbitration Decision that is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 82
Introduction Some cases seem to run forever. In 1960, Dimosia Epicheirisi Ilektrismou [DEI], the then sole supplier of electricity in Greece, entered into an agreement with Alouminion, an aluminium smelter, to provide electricity at preferential rates. The agreement expired in 2006. However, DEI and Alouminion, and its successor Mytilinaios and now Metlen, were not able to agree on a new […]
read more
No Comments
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
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
26. August 2025  |   State Aid Uncovered by Phedon Nicolaides

State-Aid Free Investment: Pari Passu or Benchmarked against Market Return
State Aid Blogs - State Aid Uncovered photos 19
Introduction The Finnish state owned 100% of four different companies which operated risk capital and private equity. One of those four companies was “Tesi”. Finland proposed the consolidation of the other three companies – with an estimated value of EUR 500 million – into Tesi. In addition, Finland intended to inject extra capital of EUR 300 million in Tesi. For […]
read more
No Comments
12. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Linked Enterprises through Relationships between Natural Persons
State Aid Blogs - State Aid Uncovered photos 63
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 […]
read more
No Comments
5. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Selectivity and the Reference System
State Aid Blogs - State Aid Uncovered photos 62
Introduction A public measure must be selective and satisfy the other criteria of Article 107(1) TFEU in order to be classified as State aid. The detection of selectivity requires a comparative exercise: a comparison of the aid beneficiary or beneficiaries with non-aid beneficiaries. But which non-aid beneficiaries to take into account. The answer is those who are in a similar […]
read more
No Comments
17. June 2025  |   State Aid Uncovered by Phedon Nicolaides

Coverage of Losses of a State-Owned Company
State Aid Blogs - State Aid Uncovered photos 55
Introduction Eu law does not prohibit states from owning or investing in companies [see Article 345 TFEU]. This means that when the state, as owner, makes payments to the companies it owns or loses part of its capital as a result of commercial losses, it does not grant to them State aid if such payments are mandated by law and […]
read more
No Comments
13. May 2025  |   State Aid Uncovered by Phedon Nicolaides

Tax Exemption of General Application
State Aid Blogs - State Aid Uncovered photos 50
Introduction In November 2014, the General Court in case T-219/10, Autogrill v Commission, held that a tax exemption for the acquisition of foreign undertakings did not constitute State aid because it did not exclude any undertaking from benefitting from it. This was because the beneficiaries could not be identified beforehand. However, on appeal, in December 2016, the Court of Justice […]
read more
No Comments
1. April 2025  |   State Aid Uncovered by Phedon Nicolaides

Subsidies to Incentivise Closure of Excess Capacity Are State Aid
State Aid Blogs - State Aid Uncovered photos 44
Introduction Very often Member States claim that subsidies they grant as compensation for the costs incurred by the recipient undertakings do not confer an advantage to them and therefore do not constitute State aid. The Court of Justice of the EU [CJEU] has on the whole rejected this claim even if the subsidy is less than the costs which are […]
read more
No Comments
Next Page »

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