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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- private investor ×

18. October 2022  |   by Phedon Nicolaides

Public Authorities Acting as Private Investors
State Aid Blogs - State Aid Uncovered SM posts 5
It is a well-established principle in the case law that when a public authority acts as a private investor, it must disregard all public policy objectives and its obligations as an arm of the state. Many judgments of EU courts and Commission decisions have examined in detail the various elements that underpin the reasoning of a private investor such as […]
read more
No Comments
19. April 2022  |   State Aid Uncovered by Phedon Nicolaides

Injection of Capital in a Postal Operator
State Aid Blogs - State Aid Uncovered SM posts 2
The resources of a public undertaking necessarily count as “state resources”, regardless of the degree of autonomy of the public undertaking. However, not every decision of a public undertaking can necessarily be “imputed” to the state. A prudent investor may take into account authorised State aid. A prudent investor may tolerate short-term losses if it can realise sufficient profits in […]
read more
No Comments
9. June 2020  |   State Aid Uncovered by Phedon Nicolaides

Private Investor and Preferential Regulatory Treatment
pills on money
The existence of an advantage has to be proven, not presumed just because its absence cannot be confirmed. Preferential treatment may distort competition but it is not necessarily State aid if there is no transfer of state resources. Temporary Framework: Number of approved covid-19 measures, as of 5 June 2020: 148* Legal basis: Article 107(2)(b): 13; Article 107(3)(b): 125; Article […]
read more
No Comments
12. May 2020  |   State Aid Uncovered by Phedon Nicolaides

Advantage Must be Proven, Not Assumed
Road sign "Wrong Way"
The European Commission has to consider whether the private investor principle is applicable in cases of state investments. It is for Member States to prove that their investments conform with the private investor principle. Temporary Framework As of 9 May 2020, the European Commission had approved 113 State aid measures to combat covid-19. Their legal basis was: Article 107(2)(b): 10; […]
read more
No Comments
16. October 2019  |   State Aid Uncovered by Phedon Nicolaides

Attempting to Minimise Past State aid Is of No Interest to a Private Investor
State Aid Blogs - StateAidHub blogpost43 privateinvestor
A public authority acting as a private investor ignores past State aid. Introduction It is now a settled principle that when a public authority intends or pretends to act as a private investor it must not take into account any past aid it has granted to the company in which it wants to invest. On 19 September 2019, the General Court […]
read more
No Comments
25. June 2019  |   State Aid Uncovered by Phedon Nicolaides

How to Value Land in Complex Land Swaps
State Aid Blogs - StateAidHub blogpost25 LandSwap RealdMadrid
A private investor assesses all components of a complex transaction and takes into account not just profit, but also the legal implications of the prospective transaction and possible future liability.   Introduction   When a public authority sells land, it should either auction it through a competitive and unconditional process or have it valued beforehand by an independent expert.Sometimes, public […]
read more
No Comments
14. February 2019  |   State Aid Uncovered by Phedon Nicolaides

What Does a Private Investor Take into Account before Investing?
State Aid Blogs - StateAidHub blogpost6 2019 Lexxion investment Stateaid commission EU telecom
A private investor may invest in a troubled company that is restructuring is order to increase its future profitability.   Introduction   The answer to the question posed above is short and simple: everything relevant. A private investor does not ignore anything that can affect the profitability of the prospective investment.This implies that the other side of the coin is […]
read more
No Comments
20. March 2018  |   State Aid Uncovered by Phedon Nicolaides

Private Creditor v Private Investor
State Aid Blogs - m 4
A private investor never agrees to an unprofitable transaction while a private creditor may agree to a loss in order to avoid a bigger loss from non-recovery of debt owed to it. A public authority acting as a private operator must disregard any losses it may incur from State aid it granted in the past.   Introduction   A question […]
read more
1 Comment
6. February 2018  |   State Aid Uncovered by Phedon Nicolaides

How a Private Investor Behaves: EDF v Commission
State Aid Blogs - 17.10. imputability stateaid
A private investor carries out an assessment of the prospective profitability of a company before it invests in it. Ex post assessment is not sufficient. Evidence that the investment is likely to be profitable is not enough. The return must be high enough to satisfy a private investor in a similar situation (by compensating it for the risk it assumes). […]
read more
No Comments
5. September 2017  |   State Aid Uncovered by Phedon Nicolaides

Sale, Liquidation and Other Options for Private Investors
State Aid Blogs - m 33
A private investor chooses the less costly option between selling a company at a loss and liquidating it. In addition to avoiding losses, a private investor also cares for its image, quantifies its value and factors it in the sale or liquidation option.   Introduction On 6 July 2017, the General Court ruled in two closely related cases: T-74/14, France […]
read more
No Comments
Next Page »

- private investor ×

18. October 2022  |   by Phedon Nicolaides

Public Authorities Acting as Private Investors
State Aid Blogs - State Aid Uncovered SM posts 5
It is a well-established principle in the case law that when a public authority acts as a private investor, it must disregard all public policy objectives and its obligations as an arm of the state. Many judgments of EU courts and Commission decisions have examined in detail the various elements that underpin the reasoning of a private investor such as […]
read more
No Comments
19. April 2022  |   State Aid Uncovered by Phedon Nicolaides

Injection of Capital in a Postal Operator
State Aid Blogs - State Aid Uncovered SM posts 2
The resources of a public undertaking necessarily count as “state resources”, regardless of the degree of autonomy of the public undertaking. However, not every decision of a public undertaking can necessarily be “imputed” to the state. A prudent investor may take into account authorised State aid. A prudent investor may tolerate short-term losses if it can realise sufficient profits in […]
read more
No Comments
9. June 2020  |   State Aid Uncovered by Phedon Nicolaides

Private Investor and Preferential Regulatory Treatment
pills on money
The existence of an advantage has to be proven, not presumed just because its absence cannot be confirmed. Preferential treatment may distort competition but it is not necessarily State aid if there is no transfer of state resources. Temporary Framework: Number of approved covid-19 measures, as of 5 June 2020: 148* Legal basis: Article 107(2)(b): 13; Article 107(3)(b): 125; Article […]
read more
No Comments
12. May 2020  |   State Aid Uncovered by Phedon Nicolaides

Advantage Must be Proven, Not Assumed
Road sign "Wrong Way"
The European Commission has to consider whether the private investor principle is applicable in cases of state investments. It is for Member States to prove that their investments conform with the private investor principle. Temporary Framework As of 9 May 2020, the European Commission had approved 113 State aid measures to combat covid-19. Their legal basis was: Article 107(2)(b): 10; […]
read more
No Comments
16. October 2019  |   State Aid Uncovered by Phedon Nicolaides

Attempting to Minimise Past State aid Is of No Interest to a Private Investor
State Aid Blogs - StateAidHub blogpost43 privateinvestor
A public authority acting as a private investor ignores past State aid. Introduction It is now a settled principle that when a public authority intends or pretends to act as a private investor it must not take into account any past aid it has granted to the company in which it wants to invest. On 19 September 2019, the General Court […]
read more
No Comments
25. June 2019  |   State Aid Uncovered by Phedon Nicolaides

How to Value Land in Complex Land Swaps
State Aid Blogs - StateAidHub blogpost25 LandSwap RealdMadrid
A private investor assesses all components of a complex transaction and takes into account not just profit, but also the legal implications of the prospective transaction and possible future liability.   Introduction   When a public authority sells land, it should either auction it through a competitive and unconditional process or have it valued beforehand by an independent expert.Sometimes, public […]
read more
No Comments
14. February 2019  |   State Aid Uncovered by Phedon Nicolaides

What Does a Private Investor Take into Account before Investing?
State Aid Blogs - StateAidHub blogpost6 2019 Lexxion investment Stateaid commission EU telecom
A private investor may invest in a troubled company that is restructuring is order to increase its future profitability.   Introduction   The answer to the question posed above is short and simple: everything relevant. A private investor does not ignore anything that can affect the profitability of the prospective investment.This implies that the other side of the coin is […]
read more
No Comments
20. March 2018  |   State Aid Uncovered by Phedon Nicolaides

Private Creditor v Private Investor
State Aid Blogs - m 4
A private investor never agrees to an unprofitable transaction while a private creditor may agree to a loss in order to avoid a bigger loss from non-recovery of debt owed to it. A public authority acting as a private operator must disregard any losses it may incur from State aid it granted in the past.   Introduction   A question […]
read more
1 Comment
6. February 2018  |   State Aid Uncovered by Phedon Nicolaides

How a Private Investor Behaves: EDF v Commission
State Aid Blogs - 17.10. imputability stateaid
A private investor carries out an assessment of the prospective profitability of a company before it invests in it. Ex post assessment is not sufficient. Evidence that the investment is likely to be profitable is not enough. The return must be high enough to satisfy a private investor in a similar situation (by compensating it for the risk it assumes). […]
read more
No Comments
5. September 2017  |   State Aid Uncovered by Phedon Nicolaides

Sale, Liquidation and Other Options for Private Investors
State Aid Blogs - m 33
A private investor chooses the less costly option between selling a company at a loss and liquidating it. In addition to avoiding losses, a private investor also cares for its image, quantifies its value and factors it in the sale or liquidation option.   Introduction On 6 July 2017, the General Court ruled in two closely related cases: T-74/14, France […]
read more
No Comments
Next Page »

- private investor ×

18. October 2022  |   by Phedon Nicolaides

Public Authorities Acting as Private Investors
State Aid Blogs - State Aid Uncovered SM posts 5
It is a well-established principle in the case law that when a public authority acts as a private investor, it must disregard all public policy objectives and its obligations as an arm of the state. Many judgments of EU courts and Commission decisions have examined in detail the various elements that underpin the reasoning of a private investor such as […]
read more
No Comments
19. April 2022  |   State Aid Uncovered by Phedon Nicolaides

Injection of Capital in a Postal Operator
State Aid Blogs - State Aid Uncovered SM posts 2
The resources of a public undertaking necessarily count as “state resources”, regardless of the degree of autonomy of the public undertaking. However, not every decision of a public undertaking can necessarily be “imputed” to the state. A prudent investor may take into account authorised State aid. A prudent investor may tolerate short-term losses if it can realise sufficient profits in […]
read more
No Comments
9. June 2020  |   State Aid Uncovered by Phedon Nicolaides

Private Investor and Preferential Regulatory Treatment
pills on money
The existence of an advantage has to be proven, not presumed just because its absence cannot be confirmed. Preferential treatment may distort competition but it is not necessarily State aid if there is no transfer of state resources. Temporary Framework: Number of approved covid-19 measures, as of 5 June 2020: 148* Legal basis: Article 107(2)(b): 13; Article 107(3)(b): 125; Article […]
read more
No Comments
12. May 2020  |   State Aid Uncovered by Phedon Nicolaides

Advantage Must be Proven, Not Assumed
Road sign "Wrong Way"
The European Commission has to consider whether the private investor principle is applicable in cases of state investments. It is for Member States to prove that their investments conform with the private investor principle. Temporary Framework As of 9 May 2020, the European Commission had approved 113 State aid measures to combat covid-19. Their legal basis was: Article 107(2)(b): 10; […]
read more
No Comments
16. October 2019  |   State Aid Uncovered by Phedon Nicolaides

Attempting to Minimise Past State aid Is of No Interest to a Private Investor
State Aid Blogs - StateAidHub blogpost43 privateinvestor
A public authority acting as a private investor ignores past State aid. Introduction It is now a settled principle that when a public authority intends or pretends to act as a private investor it must not take into account any past aid it has granted to the company in which it wants to invest. On 19 September 2019, the General Court […]
read more
No Comments
25. June 2019  |   State Aid Uncovered by Phedon Nicolaides

How to Value Land in Complex Land Swaps
State Aid Blogs - StateAidHub blogpost25 LandSwap RealdMadrid
A private investor assesses all components of a complex transaction and takes into account not just profit, but also the legal implications of the prospective transaction and possible future liability.   Introduction   When a public authority sells land, it should either auction it through a competitive and unconditional process or have it valued beforehand by an independent expert.Sometimes, public […]
read more
No Comments
14. February 2019  |   State Aid Uncovered by Phedon Nicolaides

What Does a Private Investor Take into Account before Investing?
State Aid Blogs - StateAidHub blogpost6 2019 Lexxion investment Stateaid commission EU telecom
A private investor may invest in a troubled company that is restructuring is order to increase its future profitability.   Introduction   The answer to the question posed above is short and simple: everything relevant. A private investor does not ignore anything that can affect the profitability of the prospective investment.This implies that the other side of the coin is […]
read more
No Comments
20. March 2018  |   State Aid Uncovered by Phedon Nicolaides

Private Creditor v Private Investor
State Aid Blogs - m 4
A private investor never agrees to an unprofitable transaction while a private creditor may agree to a loss in order to avoid a bigger loss from non-recovery of debt owed to it. A public authority acting as a private operator must disregard any losses it may incur from State aid it granted in the past.   Introduction   A question […]
read more
1 Comment
6. February 2018  |   State Aid Uncovered by Phedon Nicolaides

How a Private Investor Behaves: EDF v Commission
State Aid Blogs - 17.10. imputability stateaid
A private investor carries out an assessment of the prospective profitability of a company before it invests in it. Ex post assessment is not sufficient. Evidence that the investment is likely to be profitable is not enough. The return must be high enough to satisfy a private investor in a similar situation (by compensating it for the risk it assumes). […]
read more
No Comments
5. September 2017  |   State Aid Uncovered by Phedon Nicolaides

Sale, Liquidation and Other Options for Private Investors
State Aid Blogs - m 33
A private investor chooses the less costly option between selling a company at a loss and liquidating it. In addition to avoiding losses, a private investor also cares for its image, quantifies its value and factors it in the sale or liquidation option.   Introduction On 6 July 2017, the General Court ruled in two closely related cases: T-74/14, France […]
read more
No Comments
Next Page »

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