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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- incentive effect ×

10. September 2024  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Switching to a New Broadcasting Frequency
State Aid Blogs - State Aid Uncovered photos 10
Introduction Normally the cost of compliance with mandatory regulations may not be offset, partially or fully, by State aid because it lacks incentive effect. The beneficiaries would have to incur those costs anyway. However, even in the case of mandatory compliance, State aid may still have an incentive effect if the undertakings concerned would cease altogether the activity in question. […]
read more
No Comments
21. May 2024  |   State Aid Uncovered by Phedon Nicolaides

Authorisation of State Aid after the Start of a Project
State Aid Blogs - State Aid Uncovered photos 13
Introduction In June 2021, the European Commission, in decision SA.55526, approved an amount of EUR 167 million of State aid for the construction and operation of a liquefied natural gas [LNG] terminal close to Alexandroupolis in northern Greece. In December 2022, Greece notified a measure involving additional State aid of EUR 106 million for the same project. The Commission authorised […]
read more
No Comments
14. May 2024  |   State Aid Uncovered by Phedon Nicolaides

Restructuring State Aid
State Aid Blogs - State Aid Uncovered photos 12
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 […]
read more
No Comments
27. February 2024  |   State Aid Uncovered by Phedon Nicolaides

A Large Regional Investment Project in Spain
State Aid Blogs - State Aid Uncovered photos 6
Introduction Most State aid to “large” investment projects is granted by the Member States in Central and Eastern Europe. Moreover, most of the aid goes to induce companies to locate their projects in those countries and to overcome regional handicaps that make the investments less profitable or even loss-making than in other locations. By contrast, regional aid granted to large […]
read more
No Comments
14. November 2023  |   State Aid Uncovered by Phedon Nicolaides

Start of Works
State Aid Blogs - Untitled design 27
Introduction Perhaps the most important criterion for the compatibility of State aid with the internal market is the incentive effect. This means that State aid is capable of changing the behaviour of the recipient undertaking. State aid is normally considered not to have an incentive effect when the recipient undertaking is already committed to launch a project or has already […]
read more
No Comments
1. August 2023  |   by Phedon Nicolaides

Profitability as a Criterion of the Compatibility of State Aid with the Internal Market
State Aid Blogs - Untitled design 4
Introduction When the state has a realistic prospect of making profit, its financial transactions with third parties do not constitute State aid. The absence of profit is a strong indicator of the presence of State aid but not necessarily its compatibility with the internal market. For State aid to be compatible with the internal market it must, among other things, […]
read more
No Comments
8. February 2023  |   State Aid Uncovered by Phedon Nicolaides

State Aid May Have an Incentive Effect Even After the Start of Work: But Would it Favour Inefficient Operators?
State Aid Blogs - Untitled design 11
Introduction Perhaps the most important aspect of the compatibility of State aid with the internal market is the presence of incentive effect. That is, the aid is capable of changing the behaviour of the recipient. If it does not, then public money is wasted because it has no effect on what happens on the market anyway. In principle, in order […]
read more
No Comments
4. August 2020  |   State Aid Uncovered by Phedon Nicolaides

Draft Regional Aid Guidelines: Simpler and Clearer
Regional Aid
Update on Temporary Framework: Number of approved and published covid-19 measures, as of 31 July 2020: 235* Legal basis: Article 107(2)(b): 24; Article 107(3)(b): 198; Article 107(3)(c): 18 Five Member States have implemented 13 or more covid-19 measures each: Belgium, Denmark, France, Italy & Poland. – Average number of measures per Member State: 8.3 – Median number of measures per […]
read more
No Comments

- incentive effect ×

10. September 2024  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Switching to a New Broadcasting Frequency
State Aid Blogs - State Aid Uncovered photos 10
Introduction Normally the cost of compliance with mandatory regulations may not be offset, partially or fully, by State aid because it lacks incentive effect. The beneficiaries would have to incur those costs anyway. However, even in the case of mandatory compliance, State aid may still have an incentive effect if the undertakings concerned would cease altogether the activity in question. […]
read more
No Comments
21. May 2024  |   State Aid Uncovered by Phedon Nicolaides

Authorisation of State Aid after the Start of a Project
State Aid Blogs - State Aid Uncovered photos 13
Introduction In June 2021, the European Commission, in decision SA.55526, approved an amount of EUR 167 million of State aid for the construction and operation of a liquefied natural gas [LNG] terminal close to Alexandroupolis in northern Greece. In December 2022, Greece notified a measure involving additional State aid of EUR 106 million for the same project. The Commission authorised […]
read more
No Comments
14. May 2024  |   State Aid Uncovered by Phedon Nicolaides

Restructuring State Aid
State Aid Blogs - State Aid Uncovered photos 12
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 […]
read more
No Comments
27. February 2024  |   State Aid Uncovered by Phedon Nicolaides

A Large Regional Investment Project in Spain
State Aid Blogs - State Aid Uncovered photos 6
Introduction Most State aid to “large” investment projects is granted by the Member States in Central and Eastern Europe. Moreover, most of the aid goes to induce companies to locate their projects in those countries and to overcome regional handicaps that make the investments less profitable or even loss-making than in other locations. By contrast, regional aid granted to large […]
read more
No Comments
14. November 2023  |   State Aid Uncovered by Phedon Nicolaides

Start of Works
State Aid Blogs - Untitled design 27
Introduction Perhaps the most important criterion for the compatibility of State aid with the internal market is the incentive effect. This means that State aid is capable of changing the behaviour of the recipient undertaking. State aid is normally considered not to have an incentive effect when the recipient undertaking is already committed to launch a project or has already […]
read more
No Comments
1. August 2023  |   by Phedon Nicolaides

Profitability as a Criterion of the Compatibility of State Aid with the Internal Market
State Aid Blogs - Untitled design 4
Introduction When the state has a realistic prospect of making profit, its financial transactions with third parties do not constitute State aid. The absence of profit is a strong indicator of the presence of State aid but not necessarily its compatibility with the internal market. For State aid to be compatible with the internal market it must, among other things, […]
read more
No Comments
8. February 2023  |   State Aid Uncovered by Phedon Nicolaides

State Aid May Have an Incentive Effect Even After the Start of Work: But Would it Favour Inefficient Operators?
State Aid Blogs - Untitled design 11
Introduction Perhaps the most important aspect of the compatibility of State aid with the internal market is the presence of incentive effect. That is, the aid is capable of changing the behaviour of the recipient. If it does not, then public money is wasted because it has no effect on what happens on the market anyway. In principle, in order […]
read more
No Comments
4. August 2020  |   State Aid Uncovered by Phedon Nicolaides

Draft Regional Aid Guidelines: Simpler and Clearer
Regional Aid
Update on Temporary Framework: Number of approved and published covid-19 measures, as of 31 July 2020: 235* Legal basis: Article 107(2)(b): 24; Article 107(3)(b): 198; Article 107(3)(c): 18 Five Member States have implemented 13 or more covid-19 measures each: Belgium, Denmark, France, Italy & Poland. – Average number of measures per Member State: 8.3 – Median number of measures per […]
read more
No Comments

- incentive effect ×

10. September 2024  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Switching to a New Broadcasting Frequency
State Aid Blogs - State Aid Uncovered photos 10
Introduction Normally the cost of compliance with mandatory regulations may not be offset, partially or fully, by State aid because it lacks incentive effect. The beneficiaries would have to incur those costs anyway. However, even in the case of mandatory compliance, State aid may still have an incentive effect if the undertakings concerned would cease altogether the activity in question. […]
read more
No Comments
21. May 2024  |   State Aid Uncovered by Phedon Nicolaides

Authorisation of State Aid after the Start of a Project
State Aid Blogs - State Aid Uncovered photos 13
Introduction In June 2021, the European Commission, in decision SA.55526, approved an amount of EUR 167 million of State aid for the construction and operation of a liquefied natural gas [LNG] terminal close to Alexandroupolis in northern Greece. In December 2022, Greece notified a measure involving additional State aid of EUR 106 million for the same project. The Commission authorised […]
read more
No Comments
14. May 2024  |   State Aid Uncovered by Phedon Nicolaides

Restructuring State Aid
State Aid Blogs - State Aid Uncovered photos 12
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 […]
read more
No Comments
27. February 2024  |   State Aid Uncovered by Phedon Nicolaides

A Large Regional Investment Project in Spain
State Aid Blogs - State Aid Uncovered photos 6
Introduction Most State aid to “large” investment projects is granted by the Member States in Central and Eastern Europe. Moreover, most of the aid goes to induce companies to locate their projects in those countries and to overcome regional handicaps that make the investments less profitable or even loss-making than in other locations. By contrast, regional aid granted to large […]
read more
No Comments
14. November 2023  |   State Aid Uncovered by Phedon Nicolaides

Start of Works
State Aid Blogs - Untitled design 27
Introduction Perhaps the most important criterion for the compatibility of State aid with the internal market is the incentive effect. This means that State aid is capable of changing the behaviour of the recipient undertaking. State aid is normally considered not to have an incentive effect when the recipient undertaking is already committed to launch a project or has already […]
read more
No Comments
1. August 2023  |   by Phedon Nicolaides

Profitability as a Criterion of the Compatibility of State Aid with the Internal Market
State Aid Blogs - Untitled design 4
Introduction When the state has a realistic prospect of making profit, its financial transactions with third parties do not constitute State aid. The absence of profit is a strong indicator of the presence of State aid but not necessarily its compatibility with the internal market. For State aid to be compatible with the internal market it must, among other things, […]
read more
No Comments
8. February 2023  |   State Aid Uncovered by Phedon Nicolaides

State Aid May Have an Incentive Effect Even After the Start of Work: But Would it Favour Inefficient Operators?
State Aid Blogs - Untitled design 11
Introduction Perhaps the most important aspect of the compatibility of State aid with the internal market is the presence of incentive effect. That is, the aid is capable of changing the behaviour of the recipient. If it does not, then public money is wasted because it has no effect on what happens on the market anyway. In principle, in order […]
read more
No Comments
4. August 2020  |   State Aid Uncovered by Phedon Nicolaides

Draft Regional Aid Guidelines: Simpler and Clearer
Regional Aid
Update on Temporary Framework: Number of approved and published covid-19 measures, as of 31 July 2020: 235* Legal basis: Article 107(2)(b): 24; Article 107(3)(b): 198; Article 107(3)(c): 18 Five Member States have implemented 13 or more covid-19 measures each: Belgium, Denmark, France, Italy & Poland. – Average number of measures per Member State: 8.3 – Median number of measures per […]
read more
No Comments

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