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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- concession ×

The Use of a Competitive Procedure Ensures that the Sale of a State Asset Is Free of State Aid

Executive Summary: The sale of a state asset through an open, transparent, non-discriminatory and unconditional procedure is free of state aid. The price paid by the highest bidder is the market price. The advantage embedded in the granting of a free concession may be offset by higher taxes.   Table of Contents:  Introduction The alleged state aid Commission assessment on […]

Green Economy Hub

A municipality that develops commercial infrastructure engages in an economic activity.  A municipality that finances the development of commercially used infrastructure may grant state aid to itself.  The selection of the operator of commercial infrastructure on the basis of a competitive procedure eliminates any advantage for the operator.  The users of a commercially operated infrastructure do not receive state aid if they pay prices at market […]

First Case of a “Private Debtor” Test?

A public authority acting as a “private debtor” tries to minimise the amount that it has to pay. Introduction In assessing whether commercial transactions between public authorities and undertakings are free of State aid, the European Commission and EU courts apply the market economy investor principle [MEIP]. In essence, this principle tests whether a public investor behaves like a private […]

Public Funding of Projects that Encounter Financial Problems

Aid that is granted after the start of a project lacks incentive effect and is, therefore, incompatible with the internal market. However, aid may be justified when a project runs into financial trouble and, as a result, is likely to be abandoned without the aid. Introduction   In two decisions in December 2013, the European Commission authorised State aid for two […]

Privatisation of Aeroportos de Portugal: Conflict between the National Economic Adjustment Programme and State Aid Rules?

Background Portugal notified to the Commission the privatisation of the “Aeroportos de Portugal” [ANA] for reasons of legal certainty [SA.36197].[1] ANA is the operator of most Portuguese airports. It manages eight airports across Portugal (Lisbon, Porto, Faro, Beja, and 4 airports in the Azores) that account for the vast majority of the commercial air traffic in the country. It is worth […]

- concession ×

The Use of a Competitive Procedure Ensures that the Sale of a State Asset Is Free of State Aid

Executive Summary: The sale of a state asset through an open, transparent, non-discriminatory and unconditional procedure is free of state aid. The price paid by the highest bidder is the market price. The advantage embedded in the granting of a free concession may be offset by higher taxes.   Table of Contents:  Introduction The alleged state aid Commission assessment on […]

Green Economy Hub

A municipality that develops commercial infrastructure engages in an economic activity.  A municipality that finances the development of commercially used infrastructure may grant state aid to itself.  The selection of the operator of commercial infrastructure on the basis of a competitive procedure eliminates any advantage for the operator.  The users of a commercially operated infrastructure do not receive state aid if they pay prices at market […]

First Case of a “Private Debtor” Test?

A public authority acting as a “private debtor” tries to minimise the amount that it has to pay. Introduction In assessing whether commercial transactions between public authorities and undertakings are free of State aid, the European Commission and EU courts apply the market economy investor principle [MEIP]. In essence, this principle tests whether a public investor behaves like a private […]

Public Funding of Projects that Encounter Financial Problems

Aid that is granted after the start of a project lacks incentive effect and is, therefore, incompatible with the internal market. However, aid may be justified when a project runs into financial trouble and, as a result, is likely to be abandoned without the aid. Introduction   In two decisions in December 2013, the European Commission authorised State aid for two […]

Privatisation of Aeroportos de Portugal: Conflict between the National Economic Adjustment Programme and State Aid Rules?

Background Portugal notified to the Commission the privatisation of the “Aeroportos de Portugal” [ANA] for reasons of legal certainty [SA.36197].[1] ANA is the operator of most Portuguese airports. It manages eight airports across Portugal (Lisbon, Porto, Faro, Beja, and 4 airports in the Azores) that account for the vast majority of the commercial air traffic in the country. It is worth […]

- concession ×

The Use of a Competitive Procedure Ensures that the Sale of a State Asset Is Free of State Aid

Executive Summary: The sale of a state asset through an open, transparent, non-discriminatory and unconditional procedure is free of state aid. The price paid by the highest bidder is the market price. The advantage embedded in the granting of a free concession may be offset by higher taxes.   Table of Contents:  Introduction The alleged state aid Commission assessment on […]

Green Economy Hub

A municipality that develops commercial infrastructure engages in an economic activity.  A municipality that finances the development of commercially used infrastructure may grant state aid to itself.  The selection of the operator of commercial infrastructure on the basis of a competitive procedure eliminates any advantage for the operator.  The users of a commercially operated infrastructure do not receive state aid if they pay prices at market […]

First Case of a “Private Debtor” Test?

A public authority acting as a “private debtor” tries to minimise the amount that it has to pay. Introduction In assessing whether commercial transactions between public authorities and undertakings are free of State aid, the European Commission and EU courts apply the market economy investor principle [MEIP]. In essence, this principle tests whether a public investor behaves like a private […]

Public Funding of Projects that Encounter Financial Problems

Aid that is granted after the start of a project lacks incentive effect and is, therefore, incompatible with the internal market. However, aid may be justified when a project runs into financial trouble and, as a result, is likely to be abandoned without the aid. Introduction   In two decisions in December 2013, the European Commission authorised State aid for two […]

Privatisation of Aeroportos de Portugal: Conflict between the National Economic Adjustment Programme and State Aid Rules?

Background Portugal notified to the Commission the privatisation of the “Aeroportos de Portugal” [ANA] for reasons of legal certainty [SA.36197].[1] ANA is the operator of most Portuguese airports. It manages eight airports across Portugal (Lisbon, Porto, Faro, Beja, and 4 airports in the Azores) that account for the vast majority of the commercial air traffic in the country. It is worth […]

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