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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proportionality ×

5. January 2026  |   by Phedon Nicolaides

Transfer of Public Land Free of State Aid
State Aid Blogs - Blog 1 Bild Madrid
For valuation of public land to be credible, it should preferably be carried out by external experts. Introduction  In December 2011, the Commission asked the Spanish authorities for information on alleged state aid in the transfer of public land from Madrid City Council to Real Madrid football club. In December 2013, the Commission decided to open the formal investigation procedure […]
read more
No Comments
30. December 2025  |   by Phedon Nicolaides

State Aid to Support a Technology Hub
State Aid Blogs - State Aid Uncovered photos 92
Introduction  As part of the digital transition, Member States try to revitalise old industrial regions. A case in point is a recent Commission decision on the establishment of a technology hub in Poland’s former coal mining region of Katowice [SA.114301].1  The purpose of the Polish measure was to incentivise the development of new skills in the region. The aided project is a […]
read more
No Comments
23. December 2025  |   State Aid Uncovered by Phedon Nicolaides

No Imputability to the State of Investment by a State Enterprise
State Aid Blogs - State Aid Uncovered photos 88
Introduction  The past three articles have dealt with cases where the Commission or an EU court concluded that they were free of state aid or there were doubts as to whether they constituted state aid.  Today’s article reviews another case concerning a state intervention that was free of state aid. In decision SA.100862, the Commission found that transfer of state assets to a Finnish undertaking did not confer an advantage […]
read more
No Comments
16. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Services Inextricably Linked to the Functions of the State
State Aid Blogs - State Aid Uncovered photos 87
Introduction  There are many cases where recipients of public subsidies perform non-economic activities and, therefore, those subsidies do not constitute state aid in the meaning of Article 107(1) TFEU. By contrast, there are only a handful of cases where activities that are normally economic in nature become non-economic because they are inextricably linked to a function reserved for the state or the […]
read more
No Comments
9. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation to the Operator of a Canal Lock that Provides Free Services May Constitute State Aid
State Aid Blogs - State Aid Uncovered photos 86
Introduction State aid rules are often perceived as straightjacket on Member State policies. Yet, the fundamental logic of the criteria used by the Commission and endorsed by EU courts to determine the compatibility of state aid force Member States to ask, at minimum, why they intervene, what is the most appropriate method of intervention and how much money is required […]
read more
No Comments
2. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Arbitration Decision that is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 82
Introduction Some cases seem to run forever. In 1960, Dimosia Epicheirisi Ilektrismou [DEI], the then sole supplier of electricity in Greece, entered into an agreement with Alouminion, an aluminium smelter, to provide electricity at preferential rates. The agreement expired in 2006. However, DEI and Alouminion, and its successor Mytilinaios and now Metlen, were not able to agree on a new […]
read more
No Comments
4. November 2025  |   State Aid Uncovered by Phedon Nicolaides

The Commission Must Examine the Presence and Compatibility of Indirect State Aid
State Aid Blogs - State Aid Uncovered photos 74
Introduction  The Commission, in its 2016 Notice on the Notion of State Aid, made an important distinction between “indirect” beneficiaries and “secondary” beneficiaries of state aid. All state aid measures have secondary effects for the simple reason that direct aid recipients do not function in isolation from the rest of the economy. When they spend the aid they receive, third […]
read more
No Comments
9. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Injection of State Capital that Is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 66
Introduction Directive 2014/59 on the recovery and resolution of financial institutions and Regulation 806/2014 on establishing the single resolution mechanism stipulate that if state aid is granted to a bank, it is automatically considered to be “failing or likely to fail” and it must be either resolved, if it is a systemic institution, or, otherwise, liquidated. The only exception is […]
read more
No Comments
26. August 2025  |   State Aid Uncovered by Phedon Nicolaides

State-Aid Free Investment: Pari Passu or Benchmarked against Market Return
State Aid Blogs - State Aid Uncovered photos 19
Introduction The Finnish state owned 100% of four different companies which operated risk capital and private equity. One of those four companies was “Tesi”. Finland proposed the consolidation of the other three companies – with an estimated value of EUR 500 million – into Tesi. In addition, Finland intended to inject extra capital of EUR 300 million in Tesi. For […]
read more
No Comments
12. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Linked Enterprises through Relationships between Natural Persons
State Aid Blogs - State Aid Uncovered photos 63
Introduction A perennial issue facing aid-granting authorities is whether the aid applicants are SMEs. A mis-assessment of the SME status can have dire consequences as demonstrated by a Commission decision in May 2025 concerning State aid granted by Germany to sawmill Abalon Hardwood Hessen [AHH] [SA.24030]. The Commission found the aid to be incompatible with the internal market and ordered […]
read more
No Comments
Next Page »

proportionality ×

5. January 2026  |   by Phedon Nicolaides

Transfer of Public Land Free of State Aid
State Aid Blogs - Blog 1 Bild Madrid
For valuation of public land to be credible, it should preferably be carried out by external experts. Introduction  In December 2011, the Commission asked the Spanish authorities for information on alleged state aid in the transfer of public land from Madrid City Council to Real Madrid football club. In December 2013, the Commission decided to open the formal investigation procedure […]
read more
No Comments
30. December 2025  |   by Phedon Nicolaides

State Aid to Support a Technology Hub
State Aid Blogs - State Aid Uncovered photos 92
Introduction  As part of the digital transition, Member States try to revitalise old industrial regions. A case in point is a recent Commission decision on the establishment of a technology hub in Poland’s former coal mining region of Katowice [SA.114301].1  The purpose of the Polish measure was to incentivise the development of new skills in the region. The aided project is a […]
read more
No Comments
23. December 2025  |   State Aid Uncovered by Phedon Nicolaides

No Imputability to the State of Investment by a State Enterprise
State Aid Blogs - State Aid Uncovered photos 88
Introduction  The past three articles have dealt with cases where the Commission or an EU court concluded that they were free of state aid or there were doubts as to whether they constituted state aid.  Today’s article reviews another case concerning a state intervention that was free of state aid. In decision SA.100862, the Commission found that transfer of state assets to a Finnish undertaking did not confer an advantage […]
read more
No Comments
16. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Services Inextricably Linked to the Functions of the State
State Aid Blogs - State Aid Uncovered photos 87
Introduction  There are many cases where recipients of public subsidies perform non-economic activities and, therefore, those subsidies do not constitute state aid in the meaning of Article 107(1) TFEU. By contrast, there are only a handful of cases where activities that are normally economic in nature become non-economic because they are inextricably linked to a function reserved for the state or the […]
read more
No Comments
9. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation to the Operator of a Canal Lock that Provides Free Services May Constitute State Aid
State Aid Blogs - State Aid Uncovered photos 86
Introduction State aid rules are often perceived as straightjacket on Member State policies. Yet, the fundamental logic of the criteria used by the Commission and endorsed by EU courts to determine the compatibility of state aid force Member States to ask, at minimum, why they intervene, what is the most appropriate method of intervention and how much money is required […]
read more
No Comments
2. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Arbitration Decision that is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 82
Introduction Some cases seem to run forever. In 1960, Dimosia Epicheirisi Ilektrismou [DEI], the then sole supplier of electricity in Greece, entered into an agreement with Alouminion, an aluminium smelter, to provide electricity at preferential rates. The agreement expired in 2006. However, DEI and Alouminion, and its successor Mytilinaios and now Metlen, were not able to agree on a new […]
read more
No Comments
4. November 2025  |   State Aid Uncovered by Phedon Nicolaides

The Commission Must Examine the Presence and Compatibility of Indirect State Aid
State Aid Blogs - State Aid Uncovered photos 74
Introduction  The Commission, in its 2016 Notice on the Notion of State Aid, made an important distinction between “indirect” beneficiaries and “secondary” beneficiaries of state aid. All state aid measures have secondary effects for the simple reason that direct aid recipients do not function in isolation from the rest of the economy. When they spend the aid they receive, third […]
read more
No Comments
9. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Injection of State Capital that Is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 66
Introduction Directive 2014/59 on the recovery and resolution of financial institutions and Regulation 806/2014 on establishing the single resolution mechanism stipulate that if state aid is granted to a bank, it is automatically considered to be “failing or likely to fail” and it must be either resolved, if it is a systemic institution, or, otherwise, liquidated. The only exception is […]
read more
No Comments
26. August 2025  |   State Aid Uncovered by Phedon Nicolaides

State-Aid Free Investment: Pari Passu or Benchmarked against Market Return
State Aid Blogs - State Aid Uncovered photos 19
Introduction The Finnish state owned 100% of four different companies which operated risk capital and private equity. One of those four companies was “Tesi”. Finland proposed the consolidation of the other three companies – with an estimated value of EUR 500 million – into Tesi. In addition, Finland intended to inject extra capital of EUR 300 million in Tesi. For […]
read more
No Comments
12. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Linked Enterprises through Relationships between Natural Persons
State Aid Blogs - State Aid Uncovered photos 63
Introduction A perennial issue facing aid-granting authorities is whether the aid applicants are SMEs. A mis-assessment of the SME status can have dire consequences as demonstrated by a Commission decision in May 2025 concerning State aid granted by Germany to sawmill Abalon Hardwood Hessen [AHH] [SA.24030]. The Commission found the aid to be incompatible with the internal market and ordered […]
read more
No Comments
Next Page »

proportionality ×

5. January 2026  |   by Phedon Nicolaides

Transfer of Public Land Free of State Aid
State Aid Blogs - Blog 1 Bild Madrid
For valuation of public land to be credible, it should preferably be carried out by external experts. Introduction  In December 2011, the Commission asked the Spanish authorities for information on alleged state aid in the transfer of public land from Madrid City Council to Real Madrid football club. In December 2013, the Commission decided to open the formal investigation procedure […]
read more
No Comments
30. December 2025  |   by Phedon Nicolaides

State Aid to Support a Technology Hub
State Aid Blogs - State Aid Uncovered photos 92
Introduction  As part of the digital transition, Member States try to revitalise old industrial regions. A case in point is a recent Commission decision on the establishment of a technology hub in Poland’s former coal mining region of Katowice [SA.114301].1  The purpose of the Polish measure was to incentivise the development of new skills in the region. The aided project is a […]
read more
No Comments
23. December 2025  |   State Aid Uncovered by Phedon Nicolaides

No Imputability to the State of Investment by a State Enterprise
State Aid Blogs - State Aid Uncovered photos 88
Introduction  The past three articles have dealt with cases where the Commission or an EU court concluded that they were free of state aid or there were doubts as to whether they constituted state aid.  Today’s article reviews another case concerning a state intervention that was free of state aid. In decision SA.100862, the Commission found that transfer of state assets to a Finnish undertaking did not confer an advantage […]
read more
No Comments
16. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Services Inextricably Linked to the Functions of the State
State Aid Blogs - State Aid Uncovered photos 87
Introduction  There are many cases where recipients of public subsidies perform non-economic activities and, therefore, those subsidies do not constitute state aid in the meaning of Article 107(1) TFEU. By contrast, there are only a handful of cases where activities that are normally economic in nature become non-economic because they are inextricably linked to a function reserved for the state or the […]
read more
No Comments
9. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation to the Operator of a Canal Lock that Provides Free Services May Constitute State Aid
State Aid Blogs - State Aid Uncovered photos 86
Introduction State aid rules are often perceived as straightjacket on Member State policies. Yet, the fundamental logic of the criteria used by the Commission and endorsed by EU courts to determine the compatibility of state aid force Member States to ask, at minimum, why they intervene, what is the most appropriate method of intervention and how much money is required […]
read more
No Comments
2. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Arbitration Decision that is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 82
Introduction Some cases seem to run forever. In 1960, Dimosia Epicheirisi Ilektrismou [DEI], the then sole supplier of electricity in Greece, entered into an agreement with Alouminion, an aluminium smelter, to provide electricity at preferential rates. The agreement expired in 2006. However, DEI and Alouminion, and its successor Mytilinaios and now Metlen, were not able to agree on a new […]
read more
No Comments
4. November 2025  |   State Aid Uncovered by Phedon Nicolaides

The Commission Must Examine the Presence and Compatibility of Indirect State Aid
State Aid Blogs - State Aid Uncovered photos 74
Introduction  The Commission, in its 2016 Notice on the Notion of State Aid, made an important distinction between “indirect” beneficiaries and “secondary” beneficiaries of state aid. All state aid measures have secondary effects for the simple reason that direct aid recipients do not function in isolation from the rest of the economy. When they spend the aid they receive, third […]
read more
No Comments
9. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Injection of State Capital that Is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 66
Introduction Directive 2014/59 on the recovery and resolution of financial institutions and Regulation 806/2014 on establishing the single resolution mechanism stipulate that if state aid is granted to a bank, it is automatically considered to be “failing or likely to fail” and it must be either resolved, if it is a systemic institution, or, otherwise, liquidated. The only exception is […]
read more
No Comments
26. August 2025  |   State Aid Uncovered by Phedon Nicolaides

State-Aid Free Investment: Pari Passu or Benchmarked against Market Return
State Aid Blogs - State Aid Uncovered photos 19
Introduction The Finnish state owned 100% of four different companies which operated risk capital and private equity. One of those four companies was “Tesi”. Finland proposed the consolidation of the other three companies – with an estimated value of EUR 500 million – into Tesi. In addition, Finland intended to inject extra capital of EUR 300 million in Tesi. For […]
read more
No Comments
12. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Linked Enterprises through Relationships between Natural Persons
State Aid Blogs - State Aid Uncovered photos 63
Introduction A perennial issue facing aid-granting authorities is whether the aid applicants are SMEs. A mis-assessment of the SME status can have dire consequences as demonstrated by a Commission decision in May 2025 concerning State aid granted by Germany to sawmill Abalon Hardwood Hessen [AHH] [SA.24030]. The Commission found the aid to be incompatible with the internal market and ordered […]
read more
No Comments
Next Page »

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