State Aid Uncovered Blog

An aid scheme has three essential features: It defines the conditions on the basis of which individual aid may be granted to undertakings; eligible undertakings are defined in a general and abstract manner; no additional implementing measures are required for the granting of aid. A public measure that requires subsequent implementing measures before any aid can be granted to undertakings […]

Ex post evaluation of large aid schemes is no longer required. “Small amounts” of aid at a higher rate of aid intensity are allowed up to certain amounts. Certain start-ups are eligible for aid even if, technically, they qualify as undertakings in difficulty. A new category of “applied research” is introduced. Member States are permitted to choose the method by […]

A natural person is not an undertaking if he/she only has a controlling interest [e.g. majority of capital or voting rights] in an enterprise that engages in economic activities [i.e. it is an undertaking].  For a natural person to be considered to be an undertaking he/she must have both a controlling interest in an enterprise and be involved directly or indirectly in its management.  Exercising shareholder rights through participating and voting in the annual general meeting of shareholders does not constitute direct or […]

The discount rate for calculating the present value of state aid granted in tranches is the reference rate; i.e. base rate plus 100 bp. The discount rate for calculating the present value of an investment project is the weighted average cost of capital of the investor. Introduction When state aid is granted in instalments, the amount of future tranches has […]

A municipality that develops commercial infrastructure engages in an economic activity.  A municipality that finances the development of commercially used infrastructure may grant state aid to itself.  The selection of the operator of commercial infrastructure on the basis of a competitive procedure eliminates any advantage for the operator.  The users of a commercially operated infrastructure do not receive state aid if they pay prices at market […]

State aid may cover up to 100% of the funding gap of a project.  The funding gap demonstrates that the aid has an incentive effect.  The aid is proportional if it does not exceed the funding gap.  State aid in the fisheries sector may have to comply with both Regulation 2022/2473 [FIBER] and the fisheries guidelines.  Introduction The Commission recently approved the granting of […]

The amount of state aid embedded in a public guarantee is the difference between the market rate of the premium and the premium, if any, that is actually charged. The market rate of premium reflects the risk borne by the guarantor, which in turn reflects the credit rating of the beneficiary and the value of the collateral, if any, that […]

Being a competitor of the aid recipient is not enough. The competitor must show that it is directly and individually affected by the aid. Or, the competitor must show that it is directly affected by the Commission decision and that the decision leaves no discretion to the Member State concerned on how to comply with it. Introduction This article reviews […]

Member States must ensure that individual awards of de minimis aid do not breach the maximum allowable amount per undertaking in any three year period. They can ensure that the maximum amount is not exceeded either by establishing a national register or by checking the amounts already granted to the applicant undertaking and by confirming that any new award will […]

• In 2024, the total non-crisis state aid granted by Member States reached EUR 152 billion, an increase of 11% over the previous year. • The three most important policy objectives were environmental protection & energy savings, research and regional development. • The General Block Exemption Regulation was the basis for about 3200 measures delivering EUR 60.1 billion of aid. […]