Introduction A public measure can be classified as State aid only when it is funded from state resources. Measures funded from the budgets of public authorities are always considered to be supported by state resources. However, measures not funded from state budgets may still be supported by state resources. This is because, rather counterintuitively, the concept of state resources covers […]
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.
- taxes ×
13. February 2024 |
State Aid Uncovered
by Phedon Nicolaides
30. July 2019 |
State Aid Uncovered
by Phedon Nicolaides
Economies of scale do not necessarily correlate with ability to pay. Introduction On Thursday, 11 July 2019, France became the first European country to adopt a tax on digital sales. At about the same time, President Donald Trump warned that the US would retaliate with punitive tariffs. The US believes that the tax is aimed at its internet giants such […]
28. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
A tax refund may not be granted, if it constitutes non-notified State aid. Introduction It is a well-established principle that restrictions on internal market rights or freedoms may not be attached to a State aid measure. Indeed, current State aid rules [e.g. GBER, guidelines] explicitly exclude from their scope any aid measure which is inseparably linked to a […]
8. January 2019 |
State Aid Uncovered
by Phedon Nicolaides
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, […]
30. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Taxes which are inseparably linked with an aid measure are assessed together with the aid itself. An increase of the budget of an aid scheme by more than 20% constitutes a change of existing aid that must be notified to the Commission for prior authorisation. Introduction Taxpayers may not refuse to pay taxes on the grounds that the tax […]
11. September 2018 |
State Aid Uncovered
by Phedon Nicolaides
A tax measure may be selective in relation to both intermediate and final beneficiaries. An undertaking may enjoy a selective advantage even if it passes all tax benefits to other parties. Introduction A measure that is not selective at one level may be selective at another level and a measure that is selective at one level can also be […]
27. July 2018 |
State Aid Uncovered
by Phedon Nicolaides
A selective measure should be determined on the basis of its effects, not on the basis of the legally defined regulatory techniques. Introduction A tax measure is selective in the meaning of Article 107(1) TFEU when it basically deviates from the normal tax system. In the case of a tax reduction or a tax exemption the normal system is […]
27. December 2016 |
State Aid Uncovered
by Phedon Nicolaides
Tax payers have grounds to object to a tax on the basis of Article 107(1) TFEU only when the tax is “asymmetrical” or when it is “hypothecated” to an aid measure. Introduction On 10 November 2016, the Court of Justice ruled in case C‑449/14 P, DTS v European Commission.[1] DTS, a Spanish television company, appealed against the judgment of the General […]
29. September 2015 |
State Aid Uncovered
by Phedon Nicolaides
A public authority, acting as a private investor, may provide finance which is free of state aid to an airport and at the same time grant state aid to the same airport. Public funding of activities that fall within the exclusive tasks of the state is not state aid. When a public authority defines the activities that fall within the […]
26. August 2014 |
State Aid Uncovered
by Phedon Nicolaides
Taxes may not be examined by the Commission in the context of Article 107 even if they finance State aid measures. By contrast, the Commission may examine a tax in the context of its assessment of the compatibility of aid with the internal market when the tax is inseparable from an aid measure. A tax is inseparable from an aid […]
- taxes ×
13. February 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction A public measure can be classified as State aid only when it is funded from state resources. Measures funded from the budgets of public authorities are always considered to be supported by state resources. However, measures not funded from state budgets may still be supported by state resources. This is because, rather counterintuitively, the concept of state resources covers […]
30. July 2019 |
State Aid Uncovered
by Phedon Nicolaides
Economies of scale do not necessarily correlate with ability to pay. Introduction On Thursday, 11 July 2019, France became the first European country to adopt a tax on digital sales. At about the same time, President Donald Trump warned that the US would retaliate with punitive tariffs. The US believes that the tax is aimed at its internet giants such […]
28. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
A tax refund may not be granted, if it constitutes non-notified State aid. Introduction It is a well-established principle that restrictions on internal market rights or freedoms may not be attached to a State aid measure. Indeed, current State aid rules [e.g. GBER, guidelines] explicitly exclude from their scope any aid measure which is inseparably linked to a […]
8. January 2019 |
State Aid Uncovered
by Phedon Nicolaides
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, […]
30. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Taxes which are inseparably linked with an aid measure are assessed together with the aid itself. An increase of the budget of an aid scheme by more than 20% constitutes a change of existing aid that must be notified to the Commission for prior authorisation. Introduction Taxpayers may not refuse to pay taxes on the grounds that the tax […]
11. September 2018 |
State Aid Uncovered
by Phedon Nicolaides
A tax measure may be selective in relation to both intermediate and final beneficiaries. An undertaking may enjoy a selective advantage even if it passes all tax benefits to other parties. Introduction A measure that is not selective at one level may be selective at another level and a measure that is selective at one level can also be […]
27. July 2018 |
State Aid Uncovered
by Phedon Nicolaides
A selective measure should be determined on the basis of its effects, not on the basis of the legally defined regulatory techniques. Introduction A tax measure is selective in the meaning of Article 107(1) TFEU when it basically deviates from the normal tax system. In the case of a tax reduction or a tax exemption the normal system is […]
27. December 2016 |
State Aid Uncovered
by Phedon Nicolaides
Tax payers have grounds to object to a tax on the basis of Article 107(1) TFEU only when the tax is “asymmetrical” or when it is “hypothecated” to an aid measure. Introduction On 10 November 2016, the Court of Justice ruled in case C‑449/14 P, DTS v European Commission.[1] DTS, a Spanish television company, appealed against the judgment of the General […]
29. September 2015 |
State Aid Uncovered
by Phedon Nicolaides
A public authority, acting as a private investor, may provide finance which is free of state aid to an airport and at the same time grant state aid to the same airport. Public funding of activities that fall within the exclusive tasks of the state is not state aid. When a public authority defines the activities that fall within the […]
26. August 2014 |
State Aid Uncovered
by Phedon Nicolaides
Taxes may not be examined by the Commission in the context of Article 107 even if they finance State aid measures. By contrast, the Commission may examine a tax in the context of its assessment of the compatibility of aid with the internal market when the tax is inseparable from an aid measure. A tax is inseparable from an aid […]
- taxes ×
13. February 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction A public measure can be classified as State aid only when it is funded from state resources. Measures funded from the budgets of public authorities are always considered to be supported by state resources. However, measures not funded from state budgets may still be supported by state resources. This is because, rather counterintuitively, the concept of state resources covers […]
30. July 2019 |
State Aid Uncovered
by Phedon Nicolaides
Economies of scale do not necessarily correlate with ability to pay. Introduction On Thursday, 11 July 2019, France became the first European country to adopt a tax on digital sales. At about the same time, President Donald Trump warned that the US would retaliate with punitive tariffs. The US believes that the tax is aimed at its internet giants such […]
28. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
A tax refund may not be granted, if it constitutes non-notified State aid. Introduction It is a well-established principle that restrictions on internal market rights or freedoms may not be attached to a State aid measure. Indeed, current State aid rules [e.g. GBER, guidelines] explicitly exclude from their scope any aid measure which is inseparably linked to a […]
8. January 2019 |
State Aid Uncovered
by Phedon Nicolaides
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, […]
30. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Taxes which are inseparably linked with an aid measure are assessed together with the aid itself. An increase of the budget of an aid scheme by more than 20% constitutes a change of existing aid that must be notified to the Commission for prior authorisation. Introduction Taxpayers may not refuse to pay taxes on the grounds that the tax […]
11. September 2018 |
State Aid Uncovered
by Phedon Nicolaides
A tax measure may be selective in relation to both intermediate and final beneficiaries. An undertaking may enjoy a selective advantage even if it passes all tax benefits to other parties. Introduction A measure that is not selective at one level may be selective at another level and a measure that is selective at one level can also be […]
27. July 2018 |
State Aid Uncovered
by Phedon Nicolaides
A selective measure should be determined on the basis of its effects, not on the basis of the legally defined regulatory techniques. Introduction A tax measure is selective in the meaning of Article 107(1) TFEU when it basically deviates from the normal tax system. In the case of a tax reduction or a tax exemption the normal system is […]
27. December 2016 |
State Aid Uncovered
by Phedon Nicolaides
Tax payers have grounds to object to a tax on the basis of Article 107(1) TFEU only when the tax is “asymmetrical” or when it is “hypothecated” to an aid measure. Introduction On 10 November 2016, the Court of Justice ruled in case C‑449/14 P, DTS v European Commission.[1] DTS, a Spanish television company, appealed against the judgment of the General […]
29. September 2015 |
State Aid Uncovered
by Phedon Nicolaides
A public authority, acting as a private investor, may provide finance which is free of state aid to an airport and at the same time grant state aid to the same airport. Public funding of activities that fall within the exclusive tasks of the state is not state aid. When a public authority defines the activities that fall within the […]
26. August 2014 |
State Aid Uncovered
by Phedon Nicolaides
Taxes may not be examined by the Commission in the context of Article 107 even if they finance State aid measures. By contrast, the Commission may examine a tax in the context of its assessment of the compatibility of aid with the internal market when the tax is inseparable from an aid measure. A tax is inseparable from an aid […]