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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21. July 2026  |   by Phedon Nicolaides

The State Can Confer an Advantage without Committing State Resources
State Aid Blogs - electricity transmission lines State Aid Uncovered photos website
Executive Summary: For a public measure to constitute state aid, it must be funded by state resources. State resources are those paid from a budget of a public authority or are controlled by the state. The state can regulate commercial relationships between undertakings and confer in this way an advantage to certain undertakings without granting state aid. This is possible […]
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14. July 2026  |   by Phedon Nicolaides

Compensation for Damage Suffered as a Result of an Exceptional Occurrence
State Aid Blogs - Airplane State Aid Uncovered photos website
Executive Summary: Undertakings suffering damage by a natural disaster or exceptional occurrence may receive compensation.  Compensation may also be granted to undertakings in financial difficulty.  There must be a direct causal relationship between the disaster or the occurrence and the damage.  The compensation may never exceed the amount of the damage.     Table of Contents: Introduction  Infringement of Article 107(2)(b) TFEU?  […]
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7. July 2026  |   by Phedon Nicolaides

Auctions for Green Electricity Production
State Aid Blogs - Wind State Aid Uncovered photos website
Executive Summary Competitive bidding for state aid ensures that the aid is proportional but does not eliminate the advantage it confers to the beneficiaries.  Eligibility criteria must be objective.  No ex post adjustment is allowed, but indexing of inflation is permitted.    Table of Contents: Introduction  Eligibility  Auctions Figure 1 Reference prices Table 1 Form of aid Feed-in-tariffs Presence and compatibility of the state aid with the internal market […]
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30. June 2026  |   by Phedon Nicolaides

The Use of a Competitive Procedure Ensures that the Sale of a State Asset Is Free of State Aid
State Aid Blogs - casino State Aid Uncovered photos website
Executive Summary: The sale of a state asset through an open, transparent, non-discriminatory and unconditional procedure is free of state aid. The price paid by the highest bidder is the market price. The advantage embedded in the granting of a free concession may be offset by higher taxes.   Table of Contents:  Introduction The alleged state aid Commission assessment on […]
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23. June 2026  |   by Phedon Nicolaides

State Intervention to Remedy Market Failure Does not Have to Involve State Aid
State Aid Blogs - bank State Aid Uncovered photos website 1
Executive Summary: State aid may remedy market failure but may also cause “crowding out” of market-based activities. The possibility of crowding out can be minimised by channelling state aid to riskier or less profitable activities which receive less funding from market operators. The state may also invest with instruments that are free of state aid even where market operators are […]
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16. June 2026  |   by Phedon Nicolaides

State Aid to Incentivise Cattle Farmers to Reduce their Herds
State Aid Blogs - renewable energy State Aid Uncovered photos website 1
Executive Summary: State aid that incentivises the cessation of economic activities can be compatible with the internal market. State aid that compensates for the loss of income and cancellation of pollution rights can be compatible with the internal market. Eligible costs may also include the expenses incurred in applying for state aid   Table of Contents:  Introduction Budget Beneficiaries Form […]
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9. June 2026  |   by Phedon Nicolaides

Reduction of an Electricity Levy for Energy-intensive Users
State Aid Blogs - renewable energy State Aid Uncovered photos website
Executive Summary: A policy aiming to protect the environment, even though it may be necessary and important, does not automatically fall outside the scope of application of Article 107(1) TFEU. Relief from electricity charges confers a selective advantage, even if its purpose is to reduce the disadvantage of intensive users of electricity. Member States are allowed, under certain conditions, to […]
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2. June 2026  |   by Phedon Nicolaides

Recovery of Incompatible State Aid Cannot be Delayed
State Aid Blogs - EU State Aid Uncovered photos website
Executive Summary: Domestic procedures that allow the suspension of repayment of incompatible state aid or repayment in instalments or non-repayment in case of insufficient resources are contrary to EU law on immediate and effective recovery.   Table of Contents: Introduction The obligation of Member States to recover incompatible state aid Was the procedure of the Portuguese tax law compatible with […]
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26. May 2026  |   by Phedon Nicolaides

Apparently Objective Criteria Can Still Be Selective
A commercial passenger airplane parked at an airport terminal gate, representing the Timișoara airport state aid case.
Executive Summary: To determine whether a measure is selective in the meaning of Article 107(1) TFEU, its objective must be disregarded. What matters is whether its effects differentiate between undertakings which are in a similar situation. Quantity discounts based on objective criteria are a normal business practice. If they apply to any undertaking, such discounts are not selective. However, discounts […]
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19. May 2026  |   by Phedon Nicolaides

A State Aid Measure that Lacks Incentive Effect, Causes Excessive Distortion and Confers a Disproportional Advantage – Part II
State Aid Blogs - digital broadcasting tower State Aid Uncovered photos website
Executive Summary: The decision to provide funding may not be attributed to a Member State only when it is mandated by the EU, not when EU law allows Member States to decide whether to provide funding.  Relief from the cost of compliance with regulatory requirements confers an advantage in the meaning of Article 107(1) TFEU.  The state may amend technical […]
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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 […]
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16. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Services Inextricably Linked to the Functions of the State
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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 […]
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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
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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 […]
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2. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Arbitration Decision that is Free of State Aid
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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 […]
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25. November 2025  |   State Aid Uncovered by Phedon Nicolaides

Judicial Challenges to Recovery of Incompatible State Aid do not Prove that Recovery is Absolutely Impossible
State Aid Blogs - State Aid Uncovered photos 81
Introduction Member States can, in theory, escape from the obligation to recover state aid that the Commission has found to be incompatible with the internal market if they can demonstrate that it is absolutely impossible. When they appear before the Court of Justice of the EU [CJEU] for failing to recover incompatible aid, they always claim but rarely succeed to […]
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18. November 2025  |   State Aid Uncovered by Phedon Nicolaides

State Aid to Support an Intermodal Terminal whose Development Had Already Started
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Introduction State aid that is granted after the start of works lacks incentive effect and cannot be compatible with the internal market. However, state aid may enable the expansion of a project that has already started. The aid may be compatible if the expansion was not foreseen when the project was launched and if the subsidised costs are different from […]
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10. November 2025  |   State Aid Uncovered by Phedon Nicolaides

The First State Aid Measure Approved under CISAF: Lots of Presumptions
State Aid Blogs - State Aid Uncovered photos 77
Introduction This article reviews one of the first Commission decisions authorising state aid under the new Clean Industry State Aid Framework [CISAF]. It concerns an Italian measure that was originally notified to the Commission under the Temporary Crisis and Transition Framework, but then re-notified in July 2025 under CISAF after CISAF was adopted by the Commission in June 2025. The […]
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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 […]
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28. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Regulatory Acts such as the Granting of Betting Rights May Not Constitute State Aid
State Aid Blogs - State Aid Uncovered photos 73
Introduction Regulatory acts that confer a selective advantage without involving any transfer of state resources do not constitute State Aid. As is well established in the case law, Member States do not need to maximise revenue from granting licences, permits or authorisations when they act as regulators. Such licences, permits or authorisations may even be granted for free. Therefore, when […]
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21. October 2025  |   State Aid Uncovered by Phedon Nicolaides

State Aid for Decarbonisation of Steel Works
State Aid Blogs - Your paragraph text 1
Introduction  The decarbonisation of industry receives the second largest amount of environmental aid after reduction of environmental and energy taxes. Across different industrial sectors, the decarbonisation of steel production has probably attracted the largest amount of aid.  Recently, Sweden notified an individual measure to support investment in decarbonisation at SSAB, a steel manufacturer. The measure was approved by the Commission […]
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8. July 2021  |   Guest State Aid Blog by Alexander Rose

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, […]
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11. June 2020  |   Guest State Aid Blog by Erika Szyszczak

When State Aid Gets Political
State Aid Blogs - brexit 3870554 1920
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 […]
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14. May 2020  |   Guest State Aid Blog by Wout De Cock

Belgium and COVID-19: The European Commission Approves Several Belgian State Aid Measures
corona virus
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 […]
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17. April 2020  |   Guest State Aid Blog by Michail Kamperis

COVID-19 Measures Adopted and State Aid Measures (Hopefully) to Be Adopted: An Update from Cyprus
Corona Virus
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 […]
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9. April 2020  |   Guest State Aid Blog by Lexxion Publisher

Follow Up Webinar with Phedon Nicolaides on ‚COVID-19 and State Aid Law‘ on 20 April
Woman sitting by the computer
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 – […]
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9. April 2020  |   Guest State Aid Blog by Lexxion Publisher

Open Access Content Related to Covid-19: At a Glance
typewriter,
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 & […]
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3. April 2020  |   Guest State Aid Blog by P. Kamil Rosiak

Covid-19 Support Package for Entrepreneurs: An Update from Poland
Corona Virus
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 […]
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1. April 2020  |   Guest State Aid Blog by Lexxion Publisher

Live Webinar: Covid-19 & State Aid Law in the UK Now
older woman sitting at the table, writting
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 […]
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25. March 2020  |   Guest State Aid Blog by Lexxion Publisher

Join our live webinar with Phedon Nicolaides on ‚COVID-19 and State Aid Law‘ on 2 April
hands typing on the laptop
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 […]
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1. January 2018  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – January 2018
gavel
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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