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 of General Application

Introduction In November 2014, the General Court in case T-219/10, Autogrill v Commission, held that a tax exemption for the acquisition of foreign undertakings did not constitute State aid because it did not exclude any undertaking from benefitting from it. This was because the beneficiaries could not be identified beforehand. However, on appeal, in December 2016, the Court of Justice […]

Restructuring Aid

Introduction Following a formal investigation, the Commission in decision 2025/775 approved restructuring aid to TAROM, the Romanian airline which is 97% owned by the state.[1] In 2020, Romania provided rescue aid to TAROM, which was also approved by the Commission in decision SA.56244. The rescue decision was appealed by Wizz Air. Its appeal was dismissed by the General Court in […]

State Aid for Transition to a Sustainable Economy

Introduction Although the Temporary Crisis and Transition Framework [TCTF] expired at the end of 2024, three sections are still valid until 31 December 2025. They are sections 2.5, 2.6 and 2.8. They support the green and digital transition to a more resilient economy. In this context, Finland notified to the Commission an aid scheme consisting of two measures: (a) Aid […]

Member States Are not Obliged to Grant State Aid to all Undertakings Affected by a Serious Economic Disturbance

Introduction On 2 April 2025, the General Court, in case T‑398/21, Ryanair v Commission, dismissed yet another appeal by Ryanair against a Commission decision on aid to airlines whose purpose was to redress the impact of covid-19.[1] In particular, Ryanair sought the annulment of Commission decision on SA.59158 concerning Polish State aid to LOT airlines. The aid was authorised by the […]

The Regulation v Exploitation of a State Asset

Introduction State assets which are put at the disposal of undertakings must be made available at a market rate. Free use or use at a price below the market rate means that the state forfeits potential revenue that constitutes transfer of state resources. If all the other criteria of Article 107(1) TFEU are satisfied, the free or preferential use of […]

A Rare Aid Measure of No Effect on Trade

Introduction The assessment by the Commission of the possible effect of State aid on intra-EU trade can be summarised in the following three-step test whose purpose is to determine whether such an effect is foreseeable [i.e. not hypothetical]: the aid must support products or services that are traded, or, in the absence of such a direct effect; the recipient undertaking(s) […]

Subsidies to Incentivise Closure of Excess Capacity Are State Aid

Introduction Very often Member States claim that subsidies they grant as compensation for the costs incurred by the recipient undertakings do not confer an advantage to them and therefore do not constitute State aid. The Court of Justice of the EU [CJEU] has on the whole rejected this claim even if the subsidy is less than the costs which are […]

Measures to Support Electricity Prices Must Conform with the Principles of Non-discrimination and Proportionality

Introduction On 12 March 2025, the General Court delivered its judgment in case T-596/22, PGI Spain, & Others v Commission.[1] PGI and the other applicants sought the annulment of Commission decision on SA.102454 and SA.102569 concerning a joint Spanish and Portuguese measure on the reduction of the electricity wholesale price in the Iberian peninsula. In May 2022, Spain and Portugal […]

Compensation for the Net Cost of Providing Postal Services

Introduction Significant changes have occurred in the postal sector across Europe. Partly as a result of the covid-19 pandemic and partly due to technological evolution, letter deliveries have declined precipitously while parcel deliveries have increased substantially. At the same time digital mail has become ubiquitous. For example, in early March 2025, NordPost, the postal incumbent in Denmark and Sweden announced […]

Lease of Public Land

Introduction Public land is a public asset that must be priced correctly when rented out to third parties. The problem is that in most cases rented out plots of public land are either too large or are in unusual places. In either case, comparable commercial transactions are difficult to find, especially if transactions in such plots are infrequent. In these […]

Tax Exemption of General Application

Introduction In November 2014, the General Court in case T-219/10, Autogrill v Commission, held that a tax exemption for the acquisition of foreign undertakings did not constitute State aid because it did not exclude any undertaking from benefitting from it. This was because the beneficiaries could not be identified beforehand. However, on appeal, in December 2016, the Court of Justice […]

Restructuring Aid

Introduction Following a formal investigation, the Commission in decision 2025/775 approved restructuring aid to TAROM, the Romanian airline which is 97% owned by the state.[1] In 2020, Romania provided rescue aid to TAROM, which was also approved by the Commission in decision SA.56244. The rescue decision was appealed by Wizz Air. Its appeal was dismissed by the General Court in […]

State Aid for Transition to a Sustainable Economy

Introduction Although the Temporary Crisis and Transition Framework [TCTF] expired at the end of 2024, three sections are still valid until 31 December 2025. They are sections 2.5, 2.6 and 2.8. They support the green and digital transition to a more resilient economy. In this context, Finland notified to the Commission an aid scheme consisting of two measures: (a) Aid […]

The Regulation v Exploitation of a State Asset

Introduction State assets which are put at the disposal of undertakings must be made available at a market rate. Free use or use at a price below the market rate means that the state forfeits potential revenue that constitutes transfer of state resources. If all the other criteria of Article 107(1) TFEU are satisfied, the free or preferential use of […]

A Rare Aid Measure of No Effect on Trade

Introduction The assessment by the Commission of the possible effect of State aid on intra-EU trade can be summarised in the following three-step test whose purpose is to determine whether such an effect is foreseeable [i.e. not hypothetical]: the aid must support products or services that are traded, or, in the absence of such a direct effect; the recipient undertaking(s) […]

Subsidies to Incentivise Closure of Excess Capacity Are State Aid

Introduction Very often Member States claim that subsidies they grant as compensation for the costs incurred by the recipient undertakings do not confer an advantage to them and therefore do not constitute State aid. The Court of Justice of the EU [CJEU] has on the whole rejected this claim even if the subsidy is less than the costs which are […]

Measures to Support Electricity Prices Must Conform with the Principles of Non-discrimination and Proportionality

Introduction On 12 March 2025, the General Court delivered its judgment in case T-596/22, PGI Spain, & Others v Commission.[1] PGI and the other applicants sought the annulment of Commission decision on SA.102454 and SA.102569 concerning a joint Spanish and Portuguese measure on the reduction of the electricity wholesale price in the Iberian peninsula. In May 2022, Spain and Portugal […]

Compensation for the Net Cost of Providing Postal Services

Introduction Significant changes have occurred in the postal sector across Europe. Partly as a result of the covid-19 pandemic and partly due to technological evolution, letter deliveries have declined precipitously while parcel deliveries have increased substantially. At the same time digital mail has become ubiquitous. For example, in early March 2025, NordPost, the postal incumbent in Denmark and Sweden announced […]

Lease of Public Land

Introduction Public land is a public asset that must be priced correctly when rented out to third parties. The problem is that in most cases rented out plots of public land are either too large or are in unusual places. In either case, comparable commercial transactions are difficult to find, especially if transactions in such plots are infrequent. In these […]

Tax Exemptions for Public Casinos

Introduction The Commission, in decision 2025/317, spanning 60 pages with close to 300 recitals and concerning the special tax treatment of public casino operators in Germany, found that that treatment constituted unlawful and incompatible State aid that had to be recovered.[1] Following a complaint by the German association of gambling machine operators [Fachverband Spielhallen], the Commission examined i) special tax […]

The UK’s New Subsidy Control Bill: Targeting a Faster, More Permissive Regime Than EU State Aid Rules

The long awaited Subsidy Control Bill has been published by the UK Government with bold promises that it will “create a new system for subsidies that can enable key domestic priorities, such as levelling up economic growth across the UK and driving our green industrial revolution“.  In this article we identify the main changes immediately emerging from the draft legislation, […]

When State Aid Gets Political

We are happy to receive a guest comment on the EU – UK post-Brexit trade negotiations from Professor Emerita, Erika Szyszczak, who is a Fellow of UKTPO at the University of Sussex. This is a longer version of an earlier Blog published on the UKTPO website. Control over State aid is a stumbling block for the future of an EU […]

Belgium and COVID-19: The European Commission Approves Several Belgian State Aid Measures

We are happy to share with you an update on the Covid-19 measures that have been approved in Belgium. Our guest auhor Wout De Cock is a PhD candidate at the Vrije Universiteit Brussel and part-time teaching assistant at the Katholieke Universiteit Leuven.* Introduction In issue 1/2020 of the European State Aid Law Quarterly, we concluded that the European Commission […]

COVID-19 Measures Adopted and State Aid Measures (Hopefully) to Be Adopted: An Update from Cyprus

We are happy to share with you an update on the Covid-19 measures that are or will be adopted in Cyprus. Our guest auhor Michail Kamperis is a lawyer and partner at the law firm of Ierotheou, Kamperis & Co. LLC Nicosia, Cyprus. * Sign up for our free news alert  Sign Up For Free   Cyprus is one of […]

Follow Up Webinar with Phedon Nicolaides on ‚COVID-19 and State Aid Law‘ on 20 April

The European Commission is working on quickly adapting the existing State aid legal framework to address the current Covid-19 pandemic. Join us on 20th April from the comfort and safety of your (home) office to get an insider update on the Covid-19 response by State aid experts from the European Commission and national governments. ✓ Join from wherever you are – […]

Open Access Content Related to Covid-19: At a Glance

During these tough times, Lexxion Publisher wants to help to spread current news and updates on new regulations or support measures for combating the impact of the corona pandemic. Various contributions will be available as open access during the upcoming weeks. This post lists all contributions and will be updated on a rolling basis. Contributions related to State Aid & […]

Covid-19 Support Package for Entrepreneurs: An Update from Poland

We are happy to share with you an update on the Covid-19 support package that Poland is creating to support entrepeneurs fighting the impact of the corona pandemic. Our guest auhor P. Kamil Rosiak is Attorney-at-Law & Partner Associate at KPMG D.Dobkowski LP in Warsaw.* On 28 March 2020 the lower house of Polish parliament (Sejm) passed a bill (so […]

Live Webinar: Covid-19 & State Aid Law in the UK Now

Lexxion has created another new live webinar to keep you updated on current developments of Covid-19 and State aid law in the UK after Brexit. Leading State aid experts Jonathan Branton, George Peretz QC and Alexander Rose will work through the current EU State aid rules and answer your questions.   ✓ Join from wherever you are – high-quality content at […]

Join our live webinar with Phedon Nicolaides on ‚COVID-19 and State Aid Law‘ on 2 April

Due to global developments and responding to various requests, Lexxion has created a live webinar to keep you updated on the latest news regarding the corona virus and State aid law. You can join from wherever you are and receive high-quality content at your (home) office.   In response to the Covid-19 pandemic, EU Member States are urgently rolling out […]

Court’s Diary – January 2018

Find below the court’s diary for all State aid cases this month. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog.   Tuesday 16/01/2018 Judgment in case T-747/15 – EDF v Commission (General Court – Third Chamber) Wednesday 17/01/2018 Judgment […]

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