As long as the compensation does not exceed the net extra costs of the universal service activities, it may be used to offset other costs. Introduction The rules on State aid for services of general economic interest [SGEI] are very generous because they allow both investment and operating aid. Yet, it is not easy to comply with those rules because […]
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.
State Aid Uncovered ×
25. May 2021 |
State Aid Uncovered
by Phedon Nicolaides
20. October 2020 |
State Aid Uncovered
by Phedon Nicolaides
Fiscal benefits to employees do not constitute State aid as long as they do not confer a direct or indirect advantage to their employers. Update on Temporary Framework: Number of approved and published Covid-19 measures, as of 16 October 2020: 302* Legal basis: Article 107(2)(b): 32; Article 107(3)(b): 255; Article 107(3)(c): 23 Average number of measures per Member State: 11 […]
7. January 2020 |
State Aid Uncovered
by Phedon Nicolaides
Commission approval of State aid to bail-out a bank does not give rise to right for compensation for creditors who are bailed-in. Introduction Investors in banks who lost their money have sought compensation both at EU and national level. So far, claims for damages at EU level have been unsuccessful. In some instances, the cases before EU and national courts […]
19. November 2019 |
State Aid Uncovered
by Phedon Nicolaides
Contractual obligation to provide compensation that does not exceed the loss of income is not State aid. Introduction When is a company entitled to compensation by the state? The easy answer is “when the state is liable for damage”. However, it may be possible for a company to claim compensation from the state when the state has assumed contractual obligations. […]
3. January 2017 |
State Aid Uncovered
by Phedon Nicolaides
Providers of public services must keep separate accounts. The parameters for calculating the compensation for the extra costs of public services must be determined in advance. Awards for damages do not constitute State aid. However, no damages can be awarded as a substitute for incompatible State aid. Introduction It is often asked how compensation measures for public service obligations […]
6. October 2016 |
State Aid Uncovered
by Phedon Nicolaides
When the state imposes obligations which create extra costs for a single undertaking, that undertaking suffers a disadvantage in relation to its competitors. The extra costs are abnormal because normal costs are those borne by all competitors. Introduction On 14 July 2016, the General Court rendered its judgment in case T 143/12, Germany v Commission.1 The outcome was a victory for […]
26. January 2016 |
State Aid Uncovered
by Phedon Nicolaides
Public funding of non-economic activities does not create State aid problems when any related economic activities are clearly separated. The 2012 SGEI package can apply retroactively. Introduction Member States of the European Union are free to designate the services they consider to be in the general economic interest. However, the wide discretion they enjoy in this respect falls under […]
22. July 2014 |
State Aid Uncovered
by Phedon Nicolaides
Revenue from levies on electricity users is most likely to constitute State resources. Public service obligations can be transferred from one electricity-generating company to another. Compensation for public service obligations may distinguish between controllable and uncontrollable costs. Performance benchmarking can be used as a means for inducing efficiency. Electricity levies may not directly or indirectly discriminate against imported electricity. Introduction This is a […]
13. May 2014 |
State Aid Uncovered
by Phedon Nicolaides
Providers of SGEI must maintain separate accounts. Parameters of compensation must be determined in advance. Ex-post formulation is not in conformity with State aid rules. Ex-post calculation of compensation that covers all costs and eliminates commercial risk is not compatible with State aid rules. Introduction The calculation of the compensation to be offered to providers of services of general economic interest […]
11. October 0213 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]
State Aid Uncovered ×
25. May 2021 |
State Aid Uncovered
by Phedon Nicolaides
As long as the compensation does not exceed the net extra costs of the universal service activities, it may be used to offset other costs. Introduction The rules on State aid for services of general economic interest [SGEI] are very generous because they allow both investment and operating aid. Yet, it is not easy to comply with those rules because […]
20. October 2020 |
State Aid Uncovered
by Phedon Nicolaides
Fiscal benefits to employees do not constitute State aid as long as they do not confer a direct or indirect advantage to their employers. Update on Temporary Framework: Number of approved and published Covid-19 measures, as of 16 October 2020: 302* Legal basis: Article 107(2)(b): 32; Article 107(3)(b): 255; Article 107(3)(c): 23 Average number of measures per Member State: 11 […]
7. January 2020 |
State Aid Uncovered
by Phedon Nicolaides
Commission approval of State aid to bail-out a bank does not give rise to right for compensation for creditors who are bailed-in. Introduction Investors in banks who lost their money have sought compensation both at EU and national level. So far, claims for damages at EU level have been unsuccessful. In some instances, the cases before EU and national courts […]
19. November 2019 |
State Aid Uncovered
by Phedon Nicolaides
Contractual obligation to provide compensation that does not exceed the loss of income is not State aid. Introduction When is a company entitled to compensation by the state? The easy answer is “when the state is liable for damage”. However, it may be possible for a company to claim compensation from the state when the state has assumed contractual obligations. […]
3. January 2017 |
State Aid Uncovered
by Phedon Nicolaides
Providers of public services must keep separate accounts. The parameters for calculating the compensation for the extra costs of public services must be determined in advance. Awards for damages do not constitute State aid. However, no damages can be awarded as a substitute for incompatible State aid. Introduction It is often asked how compensation measures for public service obligations […]
6. October 2016 |
State Aid Uncovered
by Phedon Nicolaides
When the state imposes obligations which create extra costs for a single undertaking, that undertaking suffers a disadvantage in relation to its competitors. The extra costs are abnormal because normal costs are those borne by all competitors. Introduction On 14 July 2016, the General Court rendered its judgment in case T 143/12, Germany v Commission.1 The outcome was a victory for […]
26. January 2016 |
State Aid Uncovered
by Phedon Nicolaides
Public funding of non-economic activities does not create State aid problems when any related economic activities are clearly separated. The 2012 SGEI package can apply retroactively. Introduction Member States of the European Union are free to designate the services they consider to be in the general economic interest. However, the wide discretion they enjoy in this respect falls under […]
22. July 2014 |
State Aid Uncovered
by Phedon Nicolaides
Revenue from levies on electricity users is most likely to constitute State resources. Public service obligations can be transferred from one electricity-generating company to another. Compensation for public service obligations may distinguish between controllable and uncontrollable costs. Performance benchmarking can be used as a means for inducing efficiency. Electricity levies may not directly or indirectly discriminate against imported electricity. Introduction This is a […]
13. May 2014 |
State Aid Uncovered
by Phedon Nicolaides
Providers of SGEI must maintain separate accounts. Parameters of compensation must be determined in advance. Ex-post formulation is not in conformity with State aid rules. Ex-post calculation of compensation that covers all costs and eliminates commercial risk is not compatible with State aid rules. Introduction The calculation of the compensation to be offered to providers of services of general economic interest […]
11. October 0213 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]
State Aid Uncovered ×
25. May 2021 |
State Aid Uncovered
by Phedon Nicolaides
As long as the compensation does not exceed the net extra costs of the universal service activities, it may be used to offset other costs. Introduction The rules on State aid for services of general economic interest [SGEI] are very generous because they allow both investment and operating aid. Yet, it is not easy to comply with those rules because […]
20. October 2020 |
State Aid Uncovered
by Phedon Nicolaides
Fiscal benefits to employees do not constitute State aid as long as they do not confer a direct or indirect advantage to their employers. Update on Temporary Framework: Number of approved and published Covid-19 measures, as of 16 October 2020: 302* Legal basis: Article 107(2)(b): 32; Article 107(3)(b): 255; Article 107(3)(c): 23 Average number of measures per Member State: 11 […]
7. January 2020 |
State Aid Uncovered
by Phedon Nicolaides
Commission approval of State aid to bail-out a bank does not give rise to right for compensation for creditors who are bailed-in. Introduction Investors in banks who lost their money have sought compensation both at EU and national level. So far, claims for damages at EU level have been unsuccessful. In some instances, the cases before EU and national courts […]
19. November 2019 |
State Aid Uncovered
by Phedon Nicolaides
Contractual obligation to provide compensation that does not exceed the loss of income is not State aid. Introduction When is a company entitled to compensation by the state? The easy answer is “when the state is liable for damage”. However, it may be possible for a company to claim compensation from the state when the state has assumed contractual obligations. […]
3. January 2017 |
State Aid Uncovered
by Phedon Nicolaides
Providers of public services must keep separate accounts. The parameters for calculating the compensation for the extra costs of public services must be determined in advance. Awards for damages do not constitute State aid. However, no damages can be awarded as a substitute for incompatible State aid. Introduction It is often asked how compensation measures for public service obligations […]
6. October 2016 |
State Aid Uncovered
by Phedon Nicolaides
When the state imposes obligations which create extra costs for a single undertaking, that undertaking suffers a disadvantage in relation to its competitors. The extra costs are abnormal because normal costs are those borne by all competitors. Introduction On 14 July 2016, the General Court rendered its judgment in case T 143/12, Germany v Commission.1 The outcome was a victory for […]
26. January 2016 |
State Aid Uncovered
by Phedon Nicolaides
Public funding of non-economic activities does not create State aid problems when any related economic activities are clearly separated. The 2012 SGEI package can apply retroactively. Introduction Member States of the European Union are free to designate the services they consider to be in the general economic interest. However, the wide discretion they enjoy in this respect falls under […]
22. July 2014 |
State Aid Uncovered
by Phedon Nicolaides
Revenue from levies on electricity users is most likely to constitute State resources. Public service obligations can be transferred from one electricity-generating company to another. Compensation for public service obligations may distinguish between controllable and uncontrollable costs. Performance benchmarking can be used as a means for inducing efficiency. Electricity levies may not directly or indirectly discriminate against imported electricity. Introduction This is a […]
13. May 2014 |
State Aid Uncovered
by Phedon Nicolaides
Providers of SGEI must maintain separate accounts. Parameters of compensation must be determined in advance. Ex-post formulation is not in conformity with State aid rules. Ex-post calculation of compensation that covers all costs and eliminates commercial risk is not compatible with State aid rules. Introduction The calculation of the compensation to be offered to providers of services of general economic interest […]
11. October 0213 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]