Introduction In its ruling of 6 November 2018 in cases C‑622/16 P to C‑624/16 P, Scuola Elementare Maria Montessori v European Commission, the Court of Justice made it harder for Member States to escape from their recovery obligations.[1] Montessori appealed against the judgment of the General Court in case T‑220/13, Scuola Elementare Maria Montessori v European Commission. That judgment was reviewed here on […]
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.
proportionality ×
4. December 2018 |
State Aid Uncovered
by Phedon Nicolaides
27. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
Investors that lodge claims before national courts for damages from resolution of banks have legal standing to request annulment of Commission decisions authorising State aid to those banks. Introduction It is now ten years since the start of the financial crisis. In these ten years, the Commission has adopted about 500 decisions dealing with State aid to banks and other […]
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 […]
23. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Neither the existence of market failure, nor national laws that designate a service to be in the general interest can replace an official act that assigns to one or more undertakings clearly defined public service obligations. Introduction The proper definition of public service obligations (PSOs) is an issue that arises with surprising regularity. It is surprising because numerous court […]
16. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Unlimited state guarantees create a presumption that the recipient of the guarantee obtains an advantage in the form of cheaper credit. Any advantage in the form of lower risk in transactions with suppliers or clients has to be proven. Introduction State guarantees must be limited in time and amount and may cover only a specified event. Unlimited and general […]
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 […]
7. August 2018 |
State Aid Uncovered
by Phedon Nicolaides
Failure to comply with just a single provision of an exemption regulation results in the non-applicability of the whole regulation and makes any implemented aid measure automatically illegal. The compatibility of aid measures adopted in the past but continuing having effects are assessed not on the basis of old rules but on the basis of the rules which are applicable […]
5. June 2018 |
State Aid Uncovered
by Phedon Nicolaides
The Extent of the Discretion of Member States to Define Services of General Economic Interest (SGEI)
A service is classified as an SGEI not only when it is important for citizens but also when the market does not adequately supply it and one or more undertakings are compelled to provide it to specified consumers, in specified areas and on specified terms. Introduction The Treaty on the Functioning of the EU and the case law […]
22. May 2018 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
17. October 2017 |
State Aid Uncovered
by Phedon Nicolaides
When the state acts in its capacity as legislator it is not presumed to direct the resources of undertakings it owns and over which it can exercise dominant influence as a shareholder. Introduction On 13 September 2017, the Court of Justice replied to a request from a national court to advise it on the concept of state resources [case C‑329/15, […]
proportionality ×
4. December 2018 |
State Aid Uncovered
by Phedon Nicolaides
Introduction In its ruling of 6 November 2018 in cases C‑622/16 P to C‑624/16 P, Scuola Elementare Maria Montessori v European Commission, the Court of Justice made it harder for Member States to escape from their recovery obligations.[1] Montessori appealed against the judgment of the General Court in case T‑220/13, Scuola Elementare Maria Montessori v European Commission. That judgment was reviewed here on […]
27. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
Investors that lodge claims before national courts for damages from resolution of banks have legal standing to request annulment of Commission decisions authorising State aid to those banks. Introduction It is now ten years since the start of the financial crisis. In these ten years, the Commission has adopted about 500 decisions dealing with State aid to banks and other […]
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 […]
23. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Neither the existence of market failure, nor national laws that designate a service to be in the general interest can replace an official act that assigns to one or more undertakings clearly defined public service obligations. Introduction The proper definition of public service obligations (PSOs) is an issue that arises with surprising regularity. It is surprising because numerous court […]
16. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Unlimited state guarantees create a presumption that the recipient of the guarantee obtains an advantage in the form of cheaper credit. Any advantage in the form of lower risk in transactions with suppliers or clients has to be proven. Introduction State guarantees must be limited in time and amount and may cover only a specified event. Unlimited and general […]
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 […]
7. August 2018 |
State Aid Uncovered
by Phedon Nicolaides
Failure to comply with just a single provision of an exemption regulation results in the non-applicability of the whole regulation and makes any implemented aid measure automatically illegal. The compatibility of aid measures adopted in the past but continuing having effects are assessed not on the basis of old rules but on the basis of the rules which are applicable […]
5. June 2018 |
State Aid Uncovered
by Phedon Nicolaides
The Extent of the Discretion of Member States to Define Services of General Economic Interest (SGEI)
A service is classified as an SGEI not only when it is important for citizens but also when the market does not adequately supply it and one or more undertakings are compelled to provide it to specified consumers, in specified areas and on specified terms. Introduction The Treaty on the Functioning of the EU and the case law […]
22. May 2018 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
17. October 2017 |
State Aid Uncovered
by Phedon Nicolaides
When the state acts in its capacity as legislator it is not presumed to direct the resources of undertakings it owns and over which it can exercise dominant influence as a shareholder. Introduction On 13 September 2017, the Court of Justice replied to a request from a national court to advise it on the concept of state resources [case C‑329/15, […]
proportionality ×
4. December 2018 |
State Aid Uncovered
by Phedon Nicolaides
Introduction In its ruling of 6 November 2018 in cases C‑622/16 P to C‑624/16 P, Scuola Elementare Maria Montessori v European Commission, the Court of Justice made it harder for Member States to escape from their recovery obligations.[1] Montessori appealed against the judgment of the General Court in case T‑220/13, Scuola Elementare Maria Montessori v European Commission. That judgment was reviewed here on […]
27. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
Investors that lodge claims before national courts for damages from resolution of banks have legal standing to request annulment of Commission decisions authorising State aid to those banks. Introduction It is now ten years since the start of the financial crisis. In these ten years, the Commission has adopted about 500 decisions dealing with State aid to banks and other […]
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 […]
23. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Neither the existence of market failure, nor national laws that designate a service to be in the general interest can replace an official act that assigns to one or more undertakings clearly defined public service obligations. Introduction The proper definition of public service obligations (PSOs) is an issue that arises with surprising regularity. It is surprising because numerous court […]
16. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Unlimited state guarantees create a presumption that the recipient of the guarantee obtains an advantage in the form of cheaper credit. Any advantage in the form of lower risk in transactions with suppliers or clients has to be proven. Introduction State guarantees must be limited in time and amount and may cover only a specified event. Unlimited and general […]
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 […]
7. August 2018 |
State Aid Uncovered
by Phedon Nicolaides
Failure to comply with just a single provision of an exemption regulation results in the non-applicability of the whole regulation and makes any implemented aid measure automatically illegal. The compatibility of aid measures adopted in the past but continuing having effects are assessed not on the basis of old rules but on the basis of the rules which are applicable […]
5. June 2018 |
State Aid Uncovered
by Phedon Nicolaides
The Extent of the Discretion of Member States to Define Services of General Economic Interest (SGEI)
A service is classified as an SGEI not only when it is important for citizens but also when the market does not adequately supply it and one or more undertakings are compelled to provide it to specified consumers, in specified areas and on specified terms. Introduction The Treaty on the Functioning of the EU and the case law […]
22. May 2018 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
17. October 2017 |
State Aid Uncovered
by Phedon Nicolaides
When the state acts in its capacity as legislator it is not presumed to direct the resources of undertakings it owns and over which it can exercise dominant influence as a shareholder. Introduction On 13 September 2017, the Court of Justice replied to a request from a national court to advise it on the concept of state resources [case C‑329/15, […]
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Recent Posts
- New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure
- The Curious Case of Applying the Market Economy Investor Principle to a Monopoly
- Blog Intro
- The Market Economy Vendor Principle: Sale of Public Land by the Dutch Municipality of Leidschendam-Voorburg [Commission Decision SA.24123]
- An “Alternative” Method of Valuation for State-Aid-Free Sale of Public Land
- Loans, Guarantees and Credit Worthiness
- Where is the Money? The Link between Advantage and Transfer of State Resources
- Airport Operators and Budget Airlines [Commission Decision SA.23324: Finavia, Airpro and Ryanair at Tampere-Pirkkala Airport
- Sale of State-owned Airlines [Commission Decision SA.33337 on sale of subsidiaries by LOT Polish Airlines]
- Objectively Justified Pricing: The Market Economy Operator Principle
Recent Comments
- Phedon Nicolaides in "Identification of Undertakings in Difficulty"
- Martyn Williams in "Identification of Undertakings in Difficulty"
- Stuart in "Identification of Undertakings in Difficulty"
- Phedon Nicolaides in "Identification of Undertakings in Difficulty"
- Phedon Nicolaides in "Non-recovery of Incompatible State aid Is Costly"
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