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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- Tax Exemption ×

30. January 2023  |   State Aid Uncovered by Phedon Nicolaides

Cumulation of State Aid Granted by Different Member States
State Aid Blogs - State Aid Uncovered SM posts 6
Introduction The EU Green Deal and the Climate, Environmental Protection and Energy Aid Guidelines [CEEAG] allow Member States to grant more aid, in diversity and amounts, to incentivise companies to invest in greener technologies and energy. However, when multiple Member States grant aid for the same purpose, there is a risk of overcompensation of undertakings that operate across Member States. […]
read more
No Comments
17. December 2019  |   State Aid Uncovered by Phedon Nicolaides

Can a Tax (rather than a Tax Exemption) Confer a Selective Advantage?
State Aid Blogs - StateAidHub blogpost52 Stateaid Lexxion TAX Water Spain European Commission
A tax that is levied at one level of government and does not apply to products and activities at a different level of government need not be selective. Introduction A tax exemption normally confers a selective advantage, unless it is justified by the logic of the tax. Counterintuitively, a tax itself can be selectively advantageous if its scope is too […]
read more
No Comments
8. January 2019  |   State Aid Uncovered by Phedon Nicolaides

Justification of a Tax Exemption
State Aid Blogs - StateAidHub blogpost23
Prevention of excessive taxation may justify tax exemption. Prevention of abuse may justify limits to the tax exemption.   Introduction   A tax exemption may not constitute state aid if it is justified by reasons which are linked to the nature or general scheme of the tax system. This is what the Court of Justice said on 19 December 2018, […]
read more
No Comments
17. July 2018  |   State Aid Uncovered by Phedon Nicolaides

Danish Water Tax Exemption
State Aid Blogs - SAH Blogpost28 Water Tax Denmark
A selective tax reduction does not constitute State aid if it does not confer an advantage that is proportionately larger than the magnitude of the tax reduction. A complete exemption of insignificant amounts of the taxable volume can be justified on the grounds of reducing administrative burden.     Introduction   Member States enjoy wide discretion to levy taxes on […]
read more
No Comments
19. June 2018  |   State Aid Uncovered by Phedon Nicolaides

Sector-Specific Tax Exemptions
State Aid Blogs - SAH Blogpost 24 Seaports
A measure that covers a whole sector can be selective. Distortions caused by the policies of other Member States cannot justify the granting of State aid. The purpose of State aid is not to ensure equal conditions of competition across Member States.   Introduction On 31 May 2018, the General Court ruled in case T-160/16, Groningen Seaports v European Commission.[1] Groningen […]
read more
1 Comment
29. May 2018  |   State Aid Uncovered by Phedon Nicolaides

Exemptions from Product-Specific Taxes
State Aid Blogs - SAH Blogpost 21 Product Tax
Tax exemptions do not constitute State aid when they aim to induce change in the behaviour of consumers, when they distinguish between harmful products and non-harmful products and for reasons of administrative simplicity.   Introduction   In the past two weeks, an article was published in two parts criticising the judgments of the Court of Justice in three cases of […]
read more
No Comments
22. May 2018  |   State Aid Uncovered by Phedon Nicolaides

Exemption from Taxes that Protect the Environment May not be Selective – Part II
State Aid Blogs - victor xok gFjGZ2qRZOo unsplash
Member States have discretion to impose taxes that penalise environmentally harmful activities. Exemption of undertakings whose activities do not harm the environment does not constitute State aid whenever the exempted undertakings are not in a comparable situation.   Application of Article 107(1) to the Asturias tax   In this case, exempted establishments were those with sales area less than 4000m2 or […]
read more
No Comments
18. July 2017  |   State Aid Uncovered by Phedon Nicolaides

Even the Catholic Church Is not Absolved from State Aid Rules: The Essence of Economic Activity – PART II
State Aid Blogs - m 10
Purely religious activities and education funded by the state are not economic in nature.   Read the I. part of the article, here. Selective economic advantage The Court proceeded to examine the possible existence of a selective economic advantage. It first recalled, in paragraph 65, that the concept of State aid covers only those public measures which favour certain undertakings “or” […]
read more
No Comments

- Tax Exemption ×

30. January 2023  |   State Aid Uncovered by Phedon Nicolaides

Cumulation of State Aid Granted by Different Member States
State Aid Blogs - State Aid Uncovered SM posts 6
Introduction The EU Green Deal and the Climate, Environmental Protection and Energy Aid Guidelines [CEEAG] allow Member States to grant more aid, in diversity and amounts, to incentivise companies to invest in greener technologies and energy. However, when multiple Member States grant aid for the same purpose, there is a risk of overcompensation of undertakings that operate across Member States. […]
read more
No Comments
17. December 2019  |   State Aid Uncovered by Phedon Nicolaides

Can a Tax (rather than a Tax Exemption) Confer a Selective Advantage?
State Aid Blogs - StateAidHub blogpost52 Stateaid Lexxion TAX Water Spain European Commission
A tax that is levied at one level of government and does not apply to products and activities at a different level of government need not be selective. Introduction A tax exemption normally confers a selective advantage, unless it is justified by the logic of the tax. Counterintuitively, a tax itself can be selectively advantageous if its scope is too […]
read more
No Comments
8. January 2019  |   State Aid Uncovered by Phedon Nicolaides

Justification of a Tax Exemption
State Aid Blogs - StateAidHub blogpost23
Prevention of excessive taxation may justify tax exemption. Prevention of abuse may justify limits to the tax exemption.   Introduction   A tax exemption may not constitute state aid if it is justified by reasons which are linked to the nature or general scheme of the tax system. This is what the Court of Justice said on 19 December 2018, […]
read more
No Comments
17. July 2018  |   State Aid Uncovered by Phedon Nicolaides

Danish Water Tax Exemption
State Aid Blogs - SAH Blogpost28 Water Tax Denmark
A selective tax reduction does not constitute State aid if it does not confer an advantage that is proportionately larger than the magnitude of the tax reduction. A complete exemption of insignificant amounts of the taxable volume can be justified on the grounds of reducing administrative burden.     Introduction   Member States enjoy wide discretion to levy taxes on […]
read more
No Comments
19. June 2018  |   State Aid Uncovered by Phedon Nicolaides

Sector-Specific Tax Exemptions
State Aid Blogs - SAH Blogpost 24 Seaports
A measure that covers a whole sector can be selective. Distortions caused by the policies of other Member States cannot justify the granting of State aid. The purpose of State aid is not to ensure equal conditions of competition across Member States.   Introduction On 31 May 2018, the General Court ruled in case T-160/16, Groningen Seaports v European Commission.[1] Groningen […]
read more
1 Comment
29. May 2018  |   State Aid Uncovered by Phedon Nicolaides

Exemptions from Product-Specific Taxes
State Aid Blogs - SAH Blogpost 21 Product Tax
Tax exemptions do not constitute State aid when they aim to induce change in the behaviour of consumers, when they distinguish between harmful products and non-harmful products and for reasons of administrative simplicity.   Introduction   In the past two weeks, an article was published in two parts criticising the judgments of the Court of Justice in three cases of […]
read more
No Comments
22. May 2018  |   State Aid Uncovered by Phedon Nicolaides

Exemption from Taxes that Protect the Environment May not be Selective – Part II
State Aid Blogs - victor xok gFjGZ2qRZOo unsplash
Member States have discretion to impose taxes that penalise environmentally harmful activities. Exemption of undertakings whose activities do not harm the environment does not constitute State aid whenever the exempted undertakings are not in a comparable situation.   Application of Article 107(1) to the Asturias tax   In this case, exempted establishments were those with sales area less than 4000m2 or […]
read more
No Comments
18. July 2017  |   State Aid Uncovered by Phedon Nicolaides

Even the Catholic Church Is not Absolved from State Aid Rules: The Essence of Economic Activity – PART II
State Aid Blogs - m 10
Purely religious activities and education funded by the state are not economic in nature.   Read the I. part of the article, here. Selective economic advantage The Court proceeded to examine the possible existence of a selective economic advantage. It first recalled, in paragraph 65, that the concept of State aid covers only those public measures which favour certain undertakings “or” […]
read more
No Comments

- Tax Exemption ×

30. January 2023  |   State Aid Uncovered by Phedon Nicolaides

Cumulation of State Aid Granted by Different Member States
State Aid Blogs - State Aid Uncovered SM posts 6
Introduction The EU Green Deal and the Climate, Environmental Protection and Energy Aid Guidelines [CEEAG] allow Member States to grant more aid, in diversity and amounts, to incentivise companies to invest in greener technologies and energy. However, when multiple Member States grant aid for the same purpose, there is a risk of overcompensation of undertakings that operate across Member States. […]
read more
No Comments
17. December 2019  |   State Aid Uncovered by Phedon Nicolaides

Can a Tax (rather than a Tax Exemption) Confer a Selective Advantage?
State Aid Blogs - StateAidHub blogpost52 Stateaid Lexxion TAX Water Spain European Commission
A tax that is levied at one level of government and does not apply to products and activities at a different level of government need not be selective. Introduction A tax exemption normally confers a selective advantage, unless it is justified by the logic of the tax. Counterintuitively, a tax itself can be selectively advantageous if its scope is too […]
read more
No Comments
8. January 2019  |   State Aid Uncovered by Phedon Nicolaides

Justification of a Tax Exemption
State Aid Blogs - StateAidHub blogpost23
Prevention of excessive taxation may justify tax exemption. Prevention of abuse may justify limits to the tax exemption.   Introduction   A tax exemption may not constitute state aid if it is justified by reasons which are linked to the nature or general scheme of the tax system. This is what the Court of Justice said on 19 December 2018, […]
read more
No Comments
17. July 2018  |   State Aid Uncovered by Phedon Nicolaides

Danish Water Tax Exemption
State Aid Blogs - SAH Blogpost28 Water Tax Denmark
A selective tax reduction does not constitute State aid if it does not confer an advantage that is proportionately larger than the magnitude of the tax reduction. A complete exemption of insignificant amounts of the taxable volume can be justified on the grounds of reducing administrative burden.     Introduction   Member States enjoy wide discretion to levy taxes on […]
read more
No Comments
19. June 2018  |   State Aid Uncovered by Phedon Nicolaides

Sector-Specific Tax Exemptions
State Aid Blogs - SAH Blogpost 24 Seaports
A measure that covers a whole sector can be selective. Distortions caused by the policies of other Member States cannot justify the granting of State aid. The purpose of State aid is not to ensure equal conditions of competition across Member States.   Introduction On 31 May 2018, the General Court ruled in case T-160/16, Groningen Seaports v European Commission.[1] Groningen […]
read more
1 Comment
29. May 2018  |   State Aid Uncovered by Phedon Nicolaides

Exemptions from Product-Specific Taxes
State Aid Blogs - SAH Blogpost 21 Product Tax
Tax exemptions do not constitute State aid when they aim to induce change in the behaviour of consumers, when they distinguish between harmful products and non-harmful products and for reasons of administrative simplicity.   Introduction   In the past two weeks, an article was published in two parts criticising the judgments of the Court of Justice in three cases of […]
read more
No Comments
22. May 2018  |   State Aid Uncovered by Phedon Nicolaides

Exemption from Taxes that Protect the Environment May not be Selective – Part II
State Aid Blogs - victor xok gFjGZ2qRZOo unsplash
Member States have discretion to impose taxes that penalise environmentally harmful activities. Exemption of undertakings whose activities do not harm the environment does not constitute State aid whenever the exempted undertakings are not in a comparable situation.   Application of Article 107(1) to the Asturias tax   In this case, exempted establishments were those with sales area less than 4000m2 or […]
read more
No Comments
18. July 2017  |   State Aid Uncovered by Phedon Nicolaides

Even the Catholic Church Is not Absolved from State Aid Rules: The Essence of Economic Activity – PART II
State Aid Blogs - m 10
Purely religious activities and education funded by the state are not economic in nature.   Read the I. part of the article, here. Selective economic advantage The Court proceeded to examine the possible existence of a selective economic advantage. It first recalled, in paragraph 65, that the concept of State aid covers only those public measures which favour certain undertakings “or” […]
read more
No Comments

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