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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- Ryanair v Commission ×

The Court of Justice Misses an Opportunity to Provide Guidance on how to Detect Possible Infringement of other Provisions of EU Law by State Aid Measures

Introduction On 23 January 2025, the Court of Justice delivered its judgment in case C‑490/23 P, Neos v Ryanair.[1] Neos, a private airline licensed in Italy, appealed against the judgment of the General Court in case T-268/21, Ryanair v Commission, by which it annulled Commission decision SA.59029 concerning an Italian compensation scheme for airlines with an Italian operating licence.[2] The […]

Aid Measures with Limited Beneficiaries

Introduction During the covid-19 pandemic Member States granted State aid to undertakings they considered important for their economies or for maintaining their connectivity with the rest of the world. Ryanair appealed against multiple Commission decisions authorising that aid. Ryanair succeeded in some of its challenges on technical issues. It lost all other cases on issues of principle. On 6 June […]

Member States May Grant State Aid to Single Beneficiaries

Introduction The European Court of Justice confirmed, once more, on 30 May 2024, in case C-353/21 P, Ryanair v Commission, that Member States do not have to grant State aid to all undertakings that may be affected by a serious economic disturbance such as a pandemic.2 This is because Member States do not have unlimited resources and because they may […]

Restructuring State Aid

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 […]

Compensation for Damage Caused by COVID-19 May be Limited to the Undertakings that Are Most Important to the Economy of a Member Stat

Introduction On 23 November 2023, Ryanair lost another appeal before the Court of Justice. The Court ruled, in case C-210/21 P, Ryanair v Commission, that the General Court was right to dismiss Ryanair’s request for annulment of a Commission decision that had authorised French aid to compensate airlines for the damage they suffered as a result of the covid-19-related travel […]

Compensation for Damage

Introduction On 28 September 2023, the Court of Justice, in case C-320/21 P, Ryanair v European Commission, delivered its first judgment in a series of appeals brought by Ryanair challenging the dismissal by the General Court of its action in multiple cases seeking the annulment of various Commission decisions authorising aid to airlines during the covid-19 pandemic. Both before the […]

State Aid May be Limited to Undertakings with Close Links with the National Economy (Part II)

State aid may be used to compensate airlines licensed by domestic authorities for losses incurred as a result of national travel restrictions. [In case you have missed part I, you can access it here.] Introduction The European Commission acted swiftly to adopt a fairly accommodating and wide-ranging “Temporary Framework” to regulate State aid for the purposes of counter-acting the impact […]

State Aid May be Limited to Undertakings with Close Links with the National Economy (Part I)

State aid may be used to compensate airlines licensed by domestic authorities for losses incurred as a result of national travel restrictions. Introduction The European Commission acted swiftly to adopt a fairly accommodating and wide-ranging “Temporary Framework” to regulate State aid for the purposes of counter-acting the impact of covid-19. The Temporary Framework was welcomed by both Member States and […]

Market Economy Operator Test

A rational airport operator considers only incremental revenue and costs and ignores any cost not caused by an agreement with an airline. State aid developments: New Guidelines in State aid in EU ETS The Commission published on Friday, 25 September, in Official Journal C 317, p.5, the new Guidelines on State aid measures in the context of the system for […]

A New but Dubious Concept of Advantage [1]

When the Commission orders recovery of aid that is intended to be passed on to final consumers, it must first calculate the amount, if any, that has been retained by the direct recipients of the aid. If the calculation is too complex, the Commission can delegate that task to national authorities. Introduction   On 5 February 2015, the General Court ruled […]

- Ryanair v Commission ×

The Court of Justice Misses an Opportunity to Provide Guidance on how to Detect Possible Infringement of other Provisions of EU Law by State Aid Measures

Introduction On 23 January 2025, the Court of Justice delivered its judgment in case C‑490/23 P, Neos v Ryanair.[1] Neos, a private airline licensed in Italy, appealed against the judgment of the General Court in case T-268/21, Ryanair v Commission, by which it annulled Commission decision SA.59029 concerning an Italian compensation scheme for airlines with an Italian operating licence.[2] The […]

Aid Measures with Limited Beneficiaries

Introduction During the covid-19 pandemic Member States granted State aid to undertakings they considered important for their economies or for maintaining their connectivity with the rest of the world. Ryanair appealed against multiple Commission decisions authorising that aid. Ryanair succeeded in some of its challenges on technical issues. It lost all other cases on issues of principle. On 6 June […]

Member States May Grant State Aid to Single Beneficiaries

Introduction The European Court of Justice confirmed, once more, on 30 May 2024, in case C-353/21 P, Ryanair v Commission, that Member States do not have to grant State aid to all undertakings that may be affected by a serious economic disturbance such as a pandemic.2 This is because Member States do not have unlimited resources and because they may […]

Restructuring State Aid

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 […]

Compensation for Damage Caused by COVID-19 May be Limited to the Undertakings that Are Most Important to the Economy of a Member Stat

Introduction On 23 November 2023, Ryanair lost another appeal before the Court of Justice. The Court ruled, in case C-210/21 P, Ryanair v Commission, that the General Court was right to dismiss Ryanair’s request for annulment of a Commission decision that had authorised French aid to compensate airlines for the damage they suffered as a result of the covid-19-related travel […]

Compensation for Damage

Introduction On 28 September 2023, the Court of Justice, in case C-320/21 P, Ryanair v European Commission, delivered its first judgment in a series of appeals brought by Ryanair challenging the dismissal by the General Court of its action in multiple cases seeking the annulment of various Commission decisions authorising aid to airlines during the covid-19 pandemic. Both before the […]

State Aid May be Limited to Undertakings with Close Links with the National Economy (Part II)

State aid may be used to compensate airlines licensed by domestic authorities for losses incurred as a result of national travel restrictions. [In case you have missed part I, you can access it here.] Introduction The European Commission acted swiftly to adopt a fairly accommodating and wide-ranging “Temporary Framework” to regulate State aid for the purposes of counter-acting the impact […]

State Aid May be Limited to Undertakings with Close Links with the National Economy (Part I)

State aid may be used to compensate airlines licensed by domestic authorities for losses incurred as a result of national travel restrictions. Introduction The European Commission acted swiftly to adopt a fairly accommodating and wide-ranging “Temporary Framework” to regulate State aid for the purposes of counter-acting the impact of covid-19. The Temporary Framework was welcomed by both Member States and […]

Market Economy Operator Test

A rational airport operator considers only incremental revenue and costs and ignores any cost not caused by an agreement with an airline. State aid developments: New Guidelines in State aid in EU ETS The Commission published on Friday, 25 September, in Official Journal C 317, p.5, the new Guidelines on State aid measures in the context of the system for […]

A New but Dubious Concept of Advantage [1]

When the Commission orders recovery of aid that is intended to be passed on to final consumers, it must first calculate the amount, if any, that has been retained by the direct recipients of the aid. If the calculation is too complex, the Commission can delegate that task to national authorities. Introduction   On 5 February 2015, the General Court ruled […]

- Ryanair v Commission ×

The Court of Justice Misses an Opportunity to Provide Guidance on how to Detect Possible Infringement of other Provisions of EU Law by State Aid Measures

Introduction On 23 January 2025, the Court of Justice delivered its judgment in case C‑490/23 P, Neos v Ryanair.[1] Neos, a private airline licensed in Italy, appealed against the judgment of the General Court in case T-268/21, Ryanair v Commission, by which it annulled Commission decision SA.59029 concerning an Italian compensation scheme for airlines with an Italian operating licence.[2] The […]

Aid Measures with Limited Beneficiaries

Introduction During the covid-19 pandemic Member States granted State aid to undertakings they considered important for their economies or for maintaining their connectivity with the rest of the world. Ryanair appealed against multiple Commission decisions authorising that aid. Ryanair succeeded in some of its challenges on technical issues. It lost all other cases on issues of principle. On 6 June […]

Member States May Grant State Aid to Single Beneficiaries

Introduction The European Court of Justice confirmed, once more, on 30 May 2024, in case C-353/21 P, Ryanair v Commission, that Member States do not have to grant State aid to all undertakings that may be affected by a serious economic disturbance such as a pandemic.2 This is because Member States do not have unlimited resources and because they may […]

Restructuring State Aid

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 […]

Compensation for Damage Caused by COVID-19 May be Limited to the Undertakings that Are Most Important to the Economy of a Member Stat

Introduction On 23 November 2023, Ryanair lost another appeal before the Court of Justice. The Court ruled, in case C-210/21 P, Ryanair v Commission, that the General Court was right to dismiss Ryanair’s request for annulment of a Commission decision that had authorised French aid to compensate airlines for the damage they suffered as a result of the covid-19-related travel […]

Compensation for Damage

Introduction On 28 September 2023, the Court of Justice, in case C-320/21 P, Ryanair v European Commission, delivered its first judgment in a series of appeals brought by Ryanair challenging the dismissal by the General Court of its action in multiple cases seeking the annulment of various Commission decisions authorising aid to airlines during the covid-19 pandemic. Both before the […]

State Aid May be Limited to Undertakings with Close Links with the National Economy (Part II)

State aid may be used to compensate airlines licensed by domestic authorities for losses incurred as a result of national travel restrictions. [In case you have missed part I, you can access it here.] Introduction The European Commission acted swiftly to adopt a fairly accommodating and wide-ranging “Temporary Framework” to regulate State aid for the purposes of counter-acting the impact […]

State Aid May be Limited to Undertakings with Close Links with the National Economy (Part I)

State aid may be used to compensate airlines licensed by domestic authorities for losses incurred as a result of national travel restrictions. Introduction The European Commission acted swiftly to adopt a fairly accommodating and wide-ranging “Temporary Framework” to regulate State aid for the purposes of counter-acting the impact of covid-19. The Temporary Framework was welcomed by both Member States and […]

Market Economy Operator Test

A rational airport operator considers only incremental revenue and costs and ignores any cost not caused by an agreement with an airline. State aid developments: New Guidelines in State aid in EU ETS The Commission published on Friday, 25 September, in Official Journal C 317, p.5, the new Guidelines on State aid measures in the context of the system for […]

A New but Dubious Concept of Advantage [1]

When the Commission orders recovery of aid that is intended to be passed on to final consumers, it must first calculate the amount, if any, that has been retained by the direct recipients of the aid. If the calculation is too complex, the Commission can delegate that task to national authorities. Introduction   On 5 February 2015, the General Court ruled […]

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