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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- funding gap ×

State Aid for Decarbonisation of Steel Works

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 […]

Extra Aid to a Project that Has Already Started

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 […]

Research and Economic Activities

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 […]

Public Support for Infrastructure

Introduction Normally, each weekly article reviews just one court judgment or Commission decision. This article deviates from normal practice. It reviews three recent Commission decisions on three different French measures of support of port infrastructure: SA.115739: Direct inland waterway access to Port of Le Havre [April 2025][1] SA.113270: Investment aid to the port of Dunkirk [December 2025][2] SA.111060: Modernisation of […]

Calculation of the Funding Gap of District Heating Projects

Introduction The European Commission recently approved a modification of a Czech scheme for the support of district heating [SA.118343]. The modification concerned an increase of the original budget due to a) a significant rise of carbon allowance prices, b) a higher than expected demand for aid and c) strategic shifts towards accelerated decarbonisation. The original scheme is authorised by decision […]

State Aid to Support “Applied Research” in Solid-State Batteries

Introduction France notified a measure to grant State aid to ProLogium for the implementation of the Promotheus R&D project which concerned the development of solid-state batteries [SSB] for electric vehicles. ProLogium is a large enterprise with 758 employees. The Commission approved the measure in decision SA.106740.[1] The aid measure has several unusual features. First, ProLogium committed to disseminate the scientific […]

Calculation of the Funding Gap of an Infrastructure Project that May also Benefit from Future Public Funding

Introduction The Commission recently approved State aid granted by Czech Republic for the construction of a multifunctional arena in Brno, with a capacity of 13300 visitors [see SA.58891]. The aid measure was unusual because it foresaw possible future public funding to cover certain financial costs in case the net operating revenue would not be enough. However, the Commission approved possible […]

An Innovative Risk-Sharing Tool for the Support of an LNG Terminal

Introduction The Commission, in decision SA.102163, authorised State aid for the construction of a terminal for liquefied natural gas [LNG] in Brunsbüttel, Germany.1 The project consists of an LNG import, storage and distribution facility with annual capacity of about 10 billion m3. The project is carried out by the German LNG Terminal GmbH [GLNG] which has three shareholders: the Dutch […]

Applying the Funding Gap Method to an Important Project of Common European Interest – Part II

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 […]

Applying the Funding Gap Method to an Important Project of Common European Interest – Part I

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 […]

- funding gap ×

State Aid for Decarbonisation of Steel Works

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 […]

Extra Aid to a Project that Has Already Started

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 […]

Research and Economic Activities

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 […]

Public Support for Infrastructure

Introduction Normally, each weekly article reviews just one court judgment or Commission decision. This article deviates from normal practice. It reviews three recent Commission decisions on three different French measures of support of port infrastructure: SA.115739: Direct inland waterway access to Port of Le Havre [April 2025][1] SA.113270: Investment aid to the port of Dunkirk [December 2025][2] SA.111060: Modernisation of […]

Calculation of the Funding Gap of District Heating Projects

Introduction The European Commission recently approved a modification of a Czech scheme for the support of district heating [SA.118343]. The modification concerned an increase of the original budget due to a) a significant rise of carbon allowance prices, b) a higher than expected demand for aid and c) strategic shifts towards accelerated decarbonisation. The original scheme is authorised by decision […]

State Aid to Support “Applied Research” in Solid-State Batteries

Introduction France notified a measure to grant State aid to ProLogium for the implementation of the Promotheus R&D project which concerned the development of solid-state batteries [SSB] for electric vehicles. ProLogium is a large enterprise with 758 employees. The Commission approved the measure in decision SA.106740.[1] The aid measure has several unusual features. First, ProLogium committed to disseminate the scientific […]

Calculation of the Funding Gap of an Infrastructure Project that May also Benefit from Future Public Funding

Introduction The Commission recently approved State aid granted by Czech Republic for the construction of a multifunctional arena in Brno, with a capacity of 13300 visitors [see SA.58891]. The aid measure was unusual because it foresaw possible future public funding to cover certain financial costs in case the net operating revenue would not be enough. However, the Commission approved possible […]

An Innovative Risk-Sharing Tool for the Support of an LNG Terminal

Introduction The Commission, in decision SA.102163, authorised State aid for the construction of a terminal for liquefied natural gas [LNG] in Brunsbüttel, Germany.1 The project consists of an LNG import, storage and distribution facility with annual capacity of about 10 billion m3. The project is carried out by the German LNG Terminal GmbH [GLNG] which has three shareholders: the Dutch […]

Applying the Funding Gap Method to an Important Project of Common European Interest – Part II

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 […]

Applying the Funding Gap Method to an Important Project of Common European Interest – Part I

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 […]

- funding gap ×

State Aid for Decarbonisation of Steel Works

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 […]

Extra Aid to a Project that Has Already Started

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 […]

Research and Economic Activities

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 […]

Public Support for Infrastructure

Introduction Normally, each weekly article reviews just one court judgment or Commission decision. This article deviates from normal practice. It reviews three recent Commission decisions on three different French measures of support of port infrastructure: SA.115739: Direct inland waterway access to Port of Le Havre [April 2025][1] SA.113270: Investment aid to the port of Dunkirk [December 2025][2] SA.111060: Modernisation of […]

Calculation of the Funding Gap of District Heating Projects

Introduction The European Commission recently approved a modification of a Czech scheme for the support of district heating [SA.118343]. The modification concerned an increase of the original budget due to a) a significant rise of carbon allowance prices, b) a higher than expected demand for aid and c) strategic shifts towards accelerated decarbonisation. The original scheme is authorised by decision […]

State Aid to Support “Applied Research” in Solid-State Batteries

Introduction France notified a measure to grant State aid to ProLogium for the implementation of the Promotheus R&D project which concerned the development of solid-state batteries [SSB] for electric vehicles. ProLogium is a large enterprise with 758 employees. The Commission approved the measure in decision SA.106740.[1] The aid measure has several unusual features. First, ProLogium committed to disseminate the scientific […]

Calculation of the Funding Gap of an Infrastructure Project that May also Benefit from Future Public Funding

Introduction The Commission recently approved State aid granted by Czech Republic for the construction of a multifunctional arena in Brno, with a capacity of 13300 visitors [see SA.58891]. The aid measure was unusual because it foresaw possible future public funding to cover certain financial costs in case the net operating revenue would not be enough. However, the Commission approved possible […]

An Innovative Risk-Sharing Tool for the Support of an LNG Terminal

Introduction The Commission, in decision SA.102163, authorised State aid for the construction of a terminal for liquefied natural gas [LNG] in Brunsbüttel, Germany.1 The project consists of an LNG import, storage and distribution facility with annual capacity of about 10 billion m3. The project is carried out by the German LNG Terminal GmbH [GLNG] which has three shareholders: the Dutch […]

Applying the Funding Gap Method to an Important Project of Common European Interest – Part II

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 […]

Applying the Funding Gap Method to an Important Project of Common European Interest – Part I

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 […]

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