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) ×

Restructuring Aid Approved on Condition that the Beneficiary Is Sold to Highest Bidder

The Commission has wide discretion in assessing the compatibility of State aid with the internal market. Each case is assessed on its own merits and, therefore, the Commission is not bound by precedents or decisions on previous cases. Sale of shares held by public authorities may be required if divestment is necessary for long-term viability of aid beneficiary. Introduction   […]

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure

Introduction   The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]

How to Use Economic Tools to Ensure the Proportionality of Aid (Commission Decision SA.34938 on a gas storage facility in Poland)

Introduction Normally, economic analysis is used by the Commission to find out whether a measure confers an abnormal advantage to an undertaking. This would be the case, for example, when a public authority makes an investment that generates a return that falls below what the market would demand. The recipient undertaking derives an abnormal advantage [i.e. an advantage that would […]

- Article 107(3) ×

Restructuring Aid Approved on Condition that the Beneficiary Is Sold to Highest Bidder

The Commission has wide discretion in assessing the compatibility of State aid with the internal market. Each case is assessed on its own merits and, therefore, the Commission is not bound by precedents or decisions on previous cases. Sale of shares held by public authorities may be required if divestment is necessary for long-term viability of aid beneficiary. Introduction   […]

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure

Introduction   The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]

How to Use Economic Tools to Ensure the Proportionality of Aid (Commission Decision SA.34938 on a gas storage facility in Poland)

Introduction Normally, economic analysis is used by the Commission to find out whether a measure confers an abnormal advantage to an undertaking. This would be the case, for example, when a public authority makes an investment that generates a return that falls below what the market would demand. The recipient undertaking derives an abnormal advantage [i.e. an advantage that would […]

- Article 107(3) ×

Restructuring Aid Approved on Condition that the Beneficiary Is Sold to Highest Bidder

The Commission has wide discretion in assessing the compatibility of State aid with the internal market. Each case is assessed on its own merits and, therefore, the Commission is not bound by precedents or decisions on previous cases. Sale of shares held by public authorities may be required if divestment is necessary for long-term viability of aid beneficiary. Introduction   […]

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure

Introduction   The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]

How to Use Economic Tools to Ensure the Proportionality of Aid (Commission Decision SA.34938 on a gas storage facility in Poland)

Introduction Normally, economic analysis is used by the Commission to find out whether a measure confers an abnormal advantage to an undertaking. This would be the case, for example, when a public authority makes an investment that generates a return that falls below what the market would demand. The recipient undertaking derives an abnormal advantage [i.e. an advantage that would […]

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