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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- Proportionality ×

19. May 2026  |   by Phedon Nicolaides

A State Aid Measure that Lacks Incentive Effect, Causes Excessive Distortion and Confers a Disproportional Advantage – Part II
State Aid Blogs - digital broadcasting tower State Aid Uncovered photos website
Executive Summary: The decision to provide funding may not be attributed to a Member State only when it is mandated by the EU, not when EU law allows Member States to decide whether to provide funding.  Relief from the cost of compliance with regulatory requirements confers an advantage in the meaning of Article 107(1) TFEU.  The state may amend technical […]
read more
No Comments
12. May 2026  |   by Phedon Nicolaides

A State Aid Measure that Lacks Incentive Effect, Causes Excessive Distortion and Confers a Disproportional Advantage – Part I
State Aid Blogs - digital broadcasting tower State Aid Uncovered photos website
Executive Summary: The decision to provide funding may not be attributed to a Member State only when it is mandated by the EU, not when EU law allows Member States to decide whether to provide funding. Relief from the cost of compliance with regulatory requirements confers an advantage in the meaning of Article 107(1) TFEU. The state may amend technical […]
read more
No Comments
7. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Extra Aid to a Project that Has Already Started
State Aid Blogs - State Aid Uncovered photos 70
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 […]
read more
No Comments
22. April 2025  |   Article 107(3)(b),Commission decision on SA.59158,discrimination,Guest State Aid Blog,proportionality,recapitalisation,Ryanair v Commission,T 398/21,undertaking in difficulty by Phedon Nicolaides

Member States Are not Obliged to Grant State Aid to all Undertakings Affected by a Serious Economic Disturbance
State Aid Blogs - State Aid Uncovered photos 47
Introduction On 2 April 2025, the General Court, in case T‑398/21, Ryanair v Commission, dismissed yet another appeal by Ryanair against a Commission decision on aid to airlines whose purpose was to redress the impact of covid-19.[1] In particular, Ryanair sought the annulment of Commission decision on SA.59158 concerning Polish State aid to LOT airlines. The aid was authorised by the […]
read more
No Comments
25. March 2025  |   State Aid Uncovered by Phedon Nicolaides

Measures to Support Electricity Prices Must Conform with the Principles of Non-discrimination and Proportionality
State Aid Blogs - State Aid Uncovered photos 43
Introduction On 12 March 2025, the General Court delivered its judgment in case T-596/22, PGI Spain, & Others v Commission.[1] PGI and the other applicants sought the annulment of Commission decision on SA.102454 and SA.102569 concerning a joint Spanish and Portuguese measure on the reduction of the electricity wholesale price in the Iberian peninsula. In May 2022, Spain and Portugal […]
read more
No Comments
9. January 2025  |   State Aid Uncovered by Phedon Nicolaides

The Problem of Compensatory State Aid
State Aid Blogs - State Aid Uncovered photos 27
Introduction During the covid-19 pandemic there were fewer bankruptcies than normal. The consensus opinion is that the vast amounts of liquidity that were pumped into EU economies saved not only healthy companies but also many of those that would have otherwise gone out of business. Although the large-scale support schemes were necessary, they also created a problem: how to separate […]
read more
No Comments
10. December 2024  |   State Aid Uncovered by Phedon Nicolaides

Cross-border Cumulation of State Aid
State Aid Blogs - State Aid Uncovered photos 13
Introduction Compliance with the rules on the cumulation of State aid can be tricky for several reasons. First, all aid granted by all public authorities for the same project needs to be taken into account. Second, this requires identification of the relevant eligible costs, as the same undertaking may legally receive multiple awards of aid for different projects whose eligible […]
read more
No Comments
14. May 2024  |   State Aid Uncovered by Phedon Nicolaides

Restructuring State Aid
State Aid Blogs - State Aid Uncovered photos 12
Introduction State aid to failing undertakings is the most distortionary form of public subsidies. They prevent the market exit of inefficient companies. For this reason, State aid for rescue or restructuring of undertakings in difficulty must always be notified to the Commission which examines each case very carefully and allows this kind of aid only when, among other things, the […]
read more
No Comments
26. March 2024  |   State Aid Uncovered by Phedon Nicolaides

Applying the Funding Gap Method to an Important Project of Common European Interest – Part II
State Aid Blogs - State Aid Uncovered photos 7
Introduction On 28 February 2024, the General Court delivered an important judgment in case T-390/20, Scandlines v Commission.(1) The judgment is important because it interpreted the Commission guidelines on Important Projects of Common European Interest [IPCEI], the funding gap methodology for determining the necessary amount of aid and the 2008 Commission Notice on state guarantees. Scandlines sought annulment of Commission […]
read more
No Comments
19. March 2024  |   by Phedon Nicolaides

Applying the Funding Gap Method to an Important Project of Common European Interest – Part I
State Aid Blogs - State Aid Uncovered photos 1
Introduction On 28 February 2024, the General Court delivered an important judgment in case T-390/20, Scandlines v Commission.(1) The judgment is important because it interpreted the Commission guidelines on Important Projects of Common European Interest [IPCEI], the funding gap methodology for determining the necessary amount of aid and the 2008 Commission Notice on state guarantees. Scandlines sought annulment of Commission […]
read more
No Comments
Next Page »

- Proportionality ×

19. May 2026  |   by Phedon Nicolaides

A State Aid Measure that Lacks Incentive Effect, Causes Excessive Distortion and Confers a Disproportional Advantage – Part II
State Aid Blogs - digital broadcasting tower State Aid Uncovered photos website
Executive Summary: The decision to provide funding may not be attributed to a Member State only when it is mandated by the EU, not when EU law allows Member States to decide whether to provide funding.  Relief from the cost of compliance with regulatory requirements confers an advantage in the meaning of Article 107(1) TFEU.  The state may amend technical […]
read more
No Comments
12. May 2026  |   by Phedon Nicolaides

A State Aid Measure that Lacks Incentive Effect, Causes Excessive Distortion and Confers a Disproportional Advantage – Part I
State Aid Blogs - digital broadcasting tower State Aid Uncovered photos website
Executive Summary: The decision to provide funding may not be attributed to a Member State only when it is mandated by the EU, not when EU law allows Member States to decide whether to provide funding. Relief from the cost of compliance with regulatory requirements confers an advantage in the meaning of Article 107(1) TFEU. The state may amend technical […]
read more
No Comments
7. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Extra Aid to a Project that Has Already Started
State Aid Blogs - State Aid Uncovered photos 70
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 […]
read more
No Comments
22. April 2025  |   Article 107(3)(b),Commission decision on SA.59158,discrimination,Guest State Aid Blog,proportionality,recapitalisation,Ryanair v Commission,T 398/21,undertaking in difficulty by Phedon Nicolaides

Member States Are not Obliged to Grant State Aid to all Undertakings Affected by a Serious Economic Disturbance
State Aid Blogs - State Aid Uncovered photos 47
Introduction On 2 April 2025, the General Court, in case T‑398/21, Ryanair v Commission, dismissed yet another appeal by Ryanair against a Commission decision on aid to airlines whose purpose was to redress the impact of covid-19.[1] In particular, Ryanair sought the annulment of Commission decision on SA.59158 concerning Polish State aid to LOT airlines. The aid was authorised by the […]
read more
No Comments
25. March 2025  |   State Aid Uncovered by Phedon Nicolaides

Measures to Support Electricity Prices Must Conform with the Principles of Non-discrimination and Proportionality
State Aid Blogs - State Aid Uncovered photos 43
Introduction On 12 March 2025, the General Court delivered its judgment in case T-596/22, PGI Spain, & Others v Commission.[1] PGI and the other applicants sought the annulment of Commission decision on SA.102454 and SA.102569 concerning a joint Spanish and Portuguese measure on the reduction of the electricity wholesale price in the Iberian peninsula. In May 2022, Spain and Portugal […]
read more
No Comments
9. January 2025  |   State Aid Uncovered by Phedon Nicolaides

The Problem of Compensatory State Aid
State Aid Blogs - State Aid Uncovered photos 27
Introduction During the covid-19 pandemic there were fewer bankruptcies than normal. The consensus opinion is that the vast amounts of liquidity that were pumped into EU economies saved not only healthy companies but also many of those that would have otherwise gone out of business. Although the large-scale support schemes were necessary, they also created a problem: how to separate […]
read more
No Comments
10. December 2024  |   State Aid Uncovered by Phedon Nicolaides

Cross-border Cumulation of State Aid
State Aid Blogs - State Aid Uncovered photos 13
Introduction Compliance with the rules on the cumulation of State aid can be tricky for several reasons. First, all aid granted by all public authorities for the same project needs to be taken into account. Second, this requires identification of the relevant eligible costs, as the same undertaking may legally receive multiple awards of aid for different projects whose eligible […]
read more
No Comments
14. May 2024  |   State Aid Uncovered by Phedon Nicolaides

Restructuring State Aid
State Aid Blogs - State Aid Uncovered photos 12
Introduction State aid to failing undertakings is the most distortionary form of public subsidies. They prevent the market exit of inefficient companies. For this reason, State aid for rescue or restructuring of undertakings in difficulty must always be notified to the Commission which examines each case very carefully and allows this kind of aid only when, among other things, the […]
read more
No Comments
26. March 2024  |   State Aid Uncovered by Phedon Nicolaides

Applying the Funding Gap Method to an Important Project of Common European Interest – Part II
State Aid Blogs - State Aid Uncovered photos 7
Introduction On 28 February 2024, the General Court delivered an important judgment in case T-390/20, Scandlines v Commission.(1) The judgment is important because it interpreted the Commission guidelines on Important Projects of Common European Interest [IPCEI], the funding gap methodology for determining the necessary amount of aid and the 2008 Commission Notice on state guarantees. Scandlines sought annulment of Commission […]
read more
No Comments
19. March 2024  |   by Phedon Nicolaides

Applying the Funding Gap Method to an Important Project of Common European Interest – Part I
State Aid Blogs - State Aid Uncovered photos 1
Introduction On 28 February 2024, the General Court delivered an important judgment in case T-390/20, Scandlines v Commission.(1) The judgment is important because it interpreted the Commission guidelines on Important Projects of Common European Interest [IPCEI], the funding gap methodology for determining the necessary amount of aid and the 2008 Commission Notice on state guarantees. Scandlines sought annulment of Commission […]
read more
No Comments
Next Page »

- Proportionality ×

19. May 2026  |   by Phedon Nicolaides

A State Aid Measure that Lacks Incentive Effect, Causes Excessive Distortion and Confers a Disproportional Advantage – Part II
State Aid Blogs - digital broadcasting tower State Aid Uncovered photos website
Executive Summary: The decision to provide funding may not be attributed to a Member State only when it is mandated by the EU, not when EU law allows Member States to decide whether to provide funding.  Relief from the cost of compliance with regulatory requirements confers an advantage in the meaning of Article 107(1) TFEU.  The state may amend technical […]
read more
No Comments
12. May 2026  |   by Phedon Nicolaides

A State Aid Measure that Lacks Incentive Effect, Causes Excessive Distortion and Confers a Disproportional Advantage – Part I
State Aid Blogs - digital broadcasting tower State Aid Uncovered photos website
Executive Summary: The decision to provide funding may not be attributed to a Member State only when it is mandated by the EU, not when EU law allows Member States to decide whether to provide funding. Relief from the cost of compliance with regulatory requirements confers an advantage in the meaning of Article 107(1) TFEU. The state may amend technical […]
read more
No Comments
7. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Extra Aid to a Project that Has Already Started
State Aid Blogs - State Aid Uncovered photos 70
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 […]
read more
No Comments
22. April 2025  |   Article 107(3)(b),Commission decision on SA.59158,discrimination,Guest State Aid Blog,proportionality,recapitalisation,Ryanair v Commission,T 398/21,undertaking in difficulty by Phedon Nicolaides

Member States Are not Obliged to Grant State Aid to all Undertakings Affected by a Serious Economic Disturbance
State Aid Blogs - State Aid Uncovered photos 47
Introduction On 2 April 2025, the General Court, in case T‑398/21, Ryanair v Commission, dismissed yet another appeal by Ryanair against a Commission decision on aid to airlines whose purpose was to redress the impact of covid-19.[1] In particular, Ryanair sought the annulment of Commission decision on SA.59158 concerning Polish State aid to LOT airlines. The aid was authorised by the […]
read more
No Comments
25. March 2025  |   State Aid Uncovered by Phedon Nicolaides

Measures to Support Electricity Prices Must Conform with the Principles of Non-discrimination and Proportionality
State Aid Blogs - State Aid Uncovered photos 43
Introduction On 12 March 2025, the General Court delivered its judgment in case T-596/22, PGI Spain, & Others v Commission.[1] PGI and the other applicants sought the annulment of Commission decision on SA.102454 and SA.102569 concerning a joint Spanish and Portuguese measure on the reduction of the electricity wholesale price in the Iberian peninsula. In May 2022, Spain and Portugal […]
read more
No Comments
9. January 2025  |   State Aid Uncovered by Phedon Nicolaides

The Problem of Compensatory State Aid
State Aid Blogs - State Aid Uncovered photos 27
Introduction During the covid-19 pandemic there were fewer bankruptcies than normal. The consensus opinion is that the vast amounts of liquidity that were pumped into EU economies saved not only healthy companies but also many of those that would have otherwise gone out of business. Although the large-scale support schemes were necessary, they also created a problem: how to separate […]
read more
No Comments
10. December 2024  |   State Aid Uncovered by Phedon Nicolaides

Cross-border Cumulation of State Aid
State Aid Blogs - State Aid Uncovered photos 13
Introduction Compliance with the rules on the cumulation of State aid can be tricky for several reasons. First, all aid granted by all public authorities for the same project needs to be taken into account. Second, this requires identification of the relevant eligible costs, as the same undertaking may legally receive multiple awards of aid for different projects whose eligible […]
read more
No Comments
14. May 2024  |   State Aid Uncovered by Phedon Nicolaides

Restructuring State Aid
State Aid Blogs - State Aid Uncovered photos 12
Introduction State aid to failing undertakings is the most distortionary form of public subsidies. They prevent the market exit of inefficient companies. For this reason, State aid for rescue or restructuring of undertakings in difficulty must always be notified to the Commission which examines each case very carefully and allows this kind of aid only when, among other things, the […]
read more
No Comments
26. March 2024  |   State Aid Uncovered by Phedon Nicolaides

Applying the Funding Gap Method to an Important Project of Common European Interest – Part II
State Aid Blogs - State Aid Uncovered photos 7
Introduction On 28 February 2024, the General Court delivered an important judgment in case T-390/20, Scandlines v Commission.(1) The judgment is important because it interpreted the Commission guidelines on Important Projects of Common European Interest [IPCEI], the funding gap methodology for determining the necessary amount of aid and the 2008 Commission Notice on state guarantees. Scandlines sought annulment of Commission […]
read more
No Comments
19. March 2024  |   by Phedon Nicolaides

Applying the Funding Gap Method to an Important Project of Common European Interest – Part I
State Aid Blogs - State Aid Uncovered photos 1
Introduction On 28 February 2024, the General Court delivered an important judgment in case T-390/20, Scandlines v Commission.(1) The judgment is important because it interpreted the Commission guidelines on Important Projects of Common European Interest [IPCEI], the funding gap methodology for determining the necessary amount of aid and the 2008 Commission Notice on state guarantees. Scandlines sought annulment of Commission […]
read more
No Comments
Next Page »

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