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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- article 107(3)(c) ×

18. February 2025  |   State Aid Uncovered by Phedon Nicolaides

Individual Aid to Support Reduction of CO2 Emissions
State Aid Blogs - State Aid Uncovered photos 34
Introduction State aid rules are, in general, less favourable to large companies mostly because they have more own funds, access to cheaper finance [mostly due to longer track record and higher credit ratings] and are more mobile so that regional handicaps have a lesser effect on them. Size also brings other advantages such as the ability to hire top economic […]
read more
No Comments
12. November 2024  |   State Aid Uncovered by Phedon Nicolaides

State Aid to Support Production of Penicillin in the EU
State Aid Blogs - State Aid Uncovered photos 19
Introduction The Commission’s block exemption regulations and the guidelines do not cover exhaustively State aid for all conceivable policy objectives. For example, there are no specific rules on investment subsidies for large enterprises in non-assisted regions. This does not mean that Member States may not grant State aid to a large company to manufacture a product they consider important. Rather, […]
read more
No Comments
9. May 2023  |   State Aid Uncovered by Phedon Nicolaides

Development of Affordable Housing
State Aid Blogs - Untitled design 15
Introduction The provision of social housing can be designated as a service of general economic interest and can be publicly funded under the Commission decision 2021/21. Member States have to show that there is a real social need and limit access to social housing to those persons who cannot afford what the market provides; i.e. low-income or vulnerable persons such […]
read more
No Comments
4. April 2023  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Damage Caused by COVID-19 Combined with Rescue Aid
State Aid Blogs - dddddddddd
Introduction Member States are allowed to grant state to compensate undertakings for damage they suffer as a result of a natural disaster or exceptional occurrence. But, it is not always easy or possible to disentangle the damage caused by such an unforeseen event from losses caused by mismanagement or changes of market conditions. The art and science of calculating the […]
read more
No Comments
25. January 2022  |   State Aid Uncovered by Phedon Nicolaides

Duplication of Infrastructure Does not Promote Regional Development
State Aid Blogs - Social Media posts 6
A private investor is not interested in regional development. A private investor recoups its investment in infrastructure from revenue from the operation of that infrastructure. Duplication of infrastructure does not contribute to regional development. Introduction In 2015 the European Commission caused a buzz in the State aid community when it decided that investment aid granted to a small Polish airport […]
read more
No Comments
2. June 2020  |   State Aid Uncovered by Phedon Nicolaides

i) Investor-State Arbitration ii) Recovery of Incompatible State Aid iii) State Aid Scoreboard 2019
Euromünzen
Member States abolish bilateral investment treaties between themselves. When the Commission orders recovery of incompatible State aid, interest has to be added to the recoverable amount for the whole period of illegality regardless of any national limitation rules. In 2018, Member States granted EUR 121 billion to industry and services, EUR 6.3 billion to agriculture and EUR 50 billion to […]
read more
No Comments
28. March 2014  |   State Aid Uncovered by Phedon Nicolaides

Competitive Elements in the Selection of Operators of Sports Infrastructure May not Be Enough to Eliminate State Aid
sport arena seats
The existence of an advantage cannot be excluded when the operator of an infrastructural facility is chosen through a competitive procedure which combines price with other selection criteria. The users of a subsidised infrastructural facility who pay a market fee may still derive an advantage when the facility is designed and/or reserved for certain usage. Introduction   Ever since the Leipzig-Halle […]
read more
No Comments
15. August 2013  |   State Aid Uncovered by Phedon Nicolaides

The Confusion between Necessity and Proportionality of State Aid [Case SA.35738: Public Funding of Port Infrastructure]
port
Introduction Several postings in this blog have examined cases concerning funding of port, airport or sport infrastructure. These cases have all had interesting peculiarities. Some involved no state aid because public authorities acted as private investors, while in other cases the funding arrangements were designed in such a way so that the state aid to operators would not spill over […]
read more
No Comments
8. June 2013  |   State Aid Uncovered by Phedon Nicolaides

Public Funding of Stadiums and Arenas
sports arena
Introduction After the judgments of the General Court and the Court of Justice on public funding of infrastructure in the now landmark case of Leipzig-Halle, the European Commission is scrutinising more closely than ever the construction and operation of stadiums and arenas. In March 2012, the Commission opened two in-depth investigations into public funding for multi-function arenas, one in Uppsala […]
read more
No Comments
26. May 2013  |   State Aid Uncovered by Phedon Nicolaides

The Puzzle of Environmental Aid: Why Do Firms Make Environmental Investments?
windmills
Introduction Environmental aid is the second largest horizontal category of state aid, after regional aid. It accounts for about 24% of all aid to industry and services. Yet, one often hears from public officials that the current Environmental Aid Guidelines (EAG) do not provide sufficient incentives for environmental protection. The problem is that aid is calculated as a percentage not […]
read more
No Comments

- article 107(3)(c) ×

18. February 2025  |   State Aid Uncovered by Phedon Nicolaides

Individual Aid to Support Reduction of CO2 Emissions
State Aid Blogs - State Aid Uncovered photos 34
Introduction State aid rules are, in general, less favourable to large companies mostly because they have more own funds, access to cheaper finance [mostly due to longer track record and higher credit ratings] and are more mobile so that regional handicaps have a lesser effect on them. Size also brings other advantages such as the ability to hire top economic […]
read more
No Comments
12. November 2024  |   State Aid Uncovered by Phedon Nicolaides

State Aid to Support Production of Penicillin in the EU
State Aid Blogs - State Aid Uncovered photos 19
Introduction The Commission’s block exemption regulations and the guidelines do not cover exhaustively State aid for all conceivable policy objectives. For example, there are no specific rules on investment subsidies for large enterprises in non-assisted regions. This does not mean that Member States may not grant State aid to a large company to manufacture a product they consider important. Rather, […]
read more
No Comments
9. May 2023  |   State Aid Uncovered by Phedon Nicolaides

Development of Affordable Housing
State Aid Blogs - Untitled design 15
Introduction The provision of social housing can be designated as a service of general economic interest and can be publicly funded under the Commission decision 2021/21. Member States have to show that there is a real social need and limit access to social housing to those persons who cannot afford what the market provides; i.e. low-income or vulnerable persons such […]
read more
No Comments
4. April 2023  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Damage Caused by COVID-19 Combined with Rescue Aid
State Aid Blogs - dddddddddd
Introduction Member States are allowed to grant state to compensate undertakings for damage they suffer as a result of a natural disaster or exceptional occurrence. But, it is not always easy or possible to disentangle the damage caused by such an unforeseen event from losses caused by mismanagement or changes of market conditions. The art and science of calculating the […]
read more
No Comments
25. January 2022  |   State Aid Uncovered by Phedon Nicolaides

Duplication of Infrastructure Does not Promote Regional Development
State Aid Blogs - Social Media posts 6
A private investor is not interested in regional development. A private investor recoups its investment in infrastructure from revenue from the operation of that infrastructure. Duplication of infrastructure does not contribute to regional development. Introduction In 2015 the European Commission caused a buzz in the State aid community when it decided that investment aid granted to a small Polish airport […]
read more
No Comments
2. June 2020  |   State Aid Uncovered by Phedon Nicolaides

i) Investor-State Arbitration ii) Recovery of Incompatible State Aid iii) State Aid Scoreboard 2019
Euromünzen
Member States abolish bilateral investment treaties between themselves. When the Commission orders recovery of incompatible State aid, interest has to be added to the recoverable amount for the whole period of illegality regardless of any national limitation rules. In 2018, Member States granted EUR 121 billion to industry and services, EUR 6.3 billion to agriculture and EUR 50 billion to […]
read more
No Comments
28. March 2014  |   State Aid Uncovered by Phedon Nicolaides

Competitive Elements in the Selection of Operators of Sports Infrastructure May not Be Enough to Eliminate State Aid
sport arena seats
The existence of an advantage cannot be excluded when the operator of an infrastructural facility is chosen through a competitive procedure which combines price with other selection criteria. The users of a subsidised infrastructural facility who pay a market fee may still derive an advantage when the facility is designed and/or reserved for certain usage. Introduction   Ever since the Leipzig-Halle […]
read more
No Comments
15. August 2013  |   State Aid Uncovered by Phedon Nicolaides

The Confusion between Necessity and Proportionality of State Aid [Case SA.35738: Public Funding of Port Infrastructure]
port
Introduction Several postings in this blog have examined cases concerning funding of port, airport or sport infrastructure. These cases have all had interesting peculiarities. Some involved no state aid because public authorities acted as private investors, while in other cases the funding arrangements were designed in such a way so that the state aid to operators would not spill over […]
read more
No Comments
8. June 2013  |   State Aid Uncovered by Phedon Nicolaides

Public Funding of Stadiums and Arenas
sports arena
Introduction After the judgments of the General Court and the Court of Justice on public funding of infrastructure in the now landmark case of Leipzig-Halle, the European Commission is scrutinising more closely than ever the construction and operation of stadiums and arenas. In March 2012, the Commission opened two in-depth investigations into public funding for multi-function arenas, one in Uppsala […]
read more
No Comments
26. May 2013  |   State Aid Uncovered by Phedon Nicolaides

The Puzzle of Environmental Aid: Why Do Firms Make Environmental Investments?
windmills
Introduction Environmental aid is the second largest horizontal category of state aid, after regional aid. It accounts for about 24% of all aid to industry and services. Yet, one often hears from public officials that the current Environmental Aid Guidelines (EAG) do not provide sufficient incentives for environmental protection. The problem is that aid is calculated as a percentage not […]
read more
No Comments

- article 107(3)(c) ×

18. February 2025  |   State Aid Uncovered by Phedon Nicolaides

Individual Aid to Support Reduction of CO2 Emissions
State Aid Blogs - State Aid Uncovered photos 34
Introduction State aid rules are, in general, less favourable to large companies mostly because they have more own funds, access to cheaper finance [mostly due to longer track record and higher credit ratings] and are more mobile so that regional handicaps have a lesser effect on them. Size also brings other advantages such as the ability to hire top economic […]
read more
No Comments
12. November 2024  |   State Aid Uncovered by Phedon Nicolaides

State Aid to Support Production of Penicillin in the EU
State Aid Blogs - State Aid Uncovered photos 19
Introduction The Commission’s block exemption regulations and the guidelines do not cover exhaustively State aid for all conceivable policy objectives. For example, there are no specific rules on investment subsidies for large enterprises in non-assisted regions. This does not mean that Member States may not grant State aid to a large company to manufacture a product they consider important. Rather, […]
read more
No Comments
9. May 2023  |   State Aid Uncovered by Phedon Nicolaides

Development of Affordable Housing
State Aid Blogs - Untitled design 15
Introduction The provision of social housing can be designated as a service of general economic interest and can be publicly funded under the Commission decision 2021/21. Member States have to show that there is a real social need and limit access to social housing to those persons who cannot afford what the market provides; i.e. low-income or vulnerable persons such […]
read more
No Comments
4. April 2023  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Damage Caused by COVID-19 Combined with Rescue Aid
State Aid Blogs - dddddddddd
Introduction Member States are allowed to grant state to compensate undertakings for damage they suffer as a result of a natural disaster or exceptional occurrence. But, it is not always easy or possible to disentangle the damage caused by such an unforeseen event from losses caused by mismanagement or changes of market conditions. The art and science of calculating the […]
read more
No Comments
25. January 2022  |   State Aid Uncovered by Phedon Nicolaides

Duplication of Infrastructure Does not Promote Regional Development
State Aid Blogs - Social Media posts 6
A private investor is not interested in regional development. A private investor recoups its investment in infrastructure from revenue from the operation of that infrastructure. Duplication of infrastructure does not contribute to regional development. Introduction In 2015 the European Commission caused a buzz in the State aid community when it decided that investment aid granted to a small Polish airport […]
read more
No Comments
2. June 2020  |   State Aid Uncovered by Phedon Nicolaides

i) Investor-State Arbitration ii) Recovery of Incompatible State Aid iii) State Aid Scoreboard 2019
Euromünzen
Member States abolish bilateral investment treaties between themselves. When the Commission orders recovery of incompatible State aid, interest has to be added to the recoverable amount for the whole period of illegality regardless of any national limitation rules. In 2018, Member States granted EUR 121 billion to industry and services, EUR 6.3 billion to agriculture and EUR 50 billion to […]
read more
No Comments
28. March 2014  |   State Aid Uncovered by Phedon Nicolaides

Competitive Elements in the Selection of Operators of Sports Infrastructure May not Be Enough to Eliminate State Aid
sport arena seats
The existence of an advantage cannot be excluded when the operator of an infrastructural facility is chosen through a competitive procedure which combines price with other selection criteria. The users of a subsidised infrastructural facility who pay a market fee may still derive an advantage when the facility is designed and/or reserved for certain usage. Introduction   Ever since the Leipzig-Halle […]
read more
No Comments
15. August 2013  |   State Aid Uncovered by Phedon Nicolaides

The Confusion between Necessity and Proportionality of State Aid [Case SA.35738: Public Funding of Port Infrastructure]
port
Introduction Several postings in this blog have examined cases concerning funding of port, airport or sport infrastructure. These cases have all had interesting peculiarities. Some involved no state aid because public authorities acted as private investors, while in other cases the funding arrangements were designed in such a way so that the state aid to operators would not spill over […]
read more
No Comments
8. June 2013  |   State Aid Uncovered by Phedon Nicolaides

Public Funding of Stadiums and Arenas
sports arena
Introduction After the judgments of the General Court and the Court of Justice on public funding of infrastructure in the now landmark case of Leipzig-Halle, the European Commission is scrutinising more closely than ever the construction and operation of stadiums and arenas. In March 2012, the Commission opened two in-depth investigations into public funding for multi-function arenas, one in Uppsala […]
read more
No Comments
26. May 2013  |   State Aid Uncovered by Phedon Nicolaides

The Puzzle of Environmental Aid: Why Do Firms Make Environmental Investments?
windmills
Introduction Environmental aid is the second largest horizontal category of state aid, after regional aid. It accounts for about 24% of all aid to industry and services. Yet, one often hears from public officials that the current Environmental Aid Guidelines (EAG) do not provide sufficient incentives for environmental protection. The problem is that aid is calculated as a percentage not […]
read more
No Comments

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