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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T 398/21 ×

18. June 2024  |   State Aid Uncovered by Phedon Nicolaides

Obligations Imposed by the State Cannot Justify Tax Exemptions
State Aid Blogs - State Aid Uncovered photos 18
Introduction Over the past decade or so, the European Commission has found that multiple port operators have benefitted from State aid in the form of tax exemptions. This aid was in all cases found to be incompatible with the internal market, despite the claims of the port operators that the state had imposed on the public service obligations or that […]
read more
No Comments
4. June 2024  |   State Aid Uncovered by Phedon Nicolaides

Special Tax Treatment for a Major Infrastructure Project
State Aid Blogs - State Aid Uncovered photos 16
Introduction In April 2013, the Commission received a complaint alleging that State aid had been granted to the Oresund fixed link. The link is a major transport infrastructure project consisting of a bridge, an artificial island and tunnels between Denmark and Sweden. In October 2014, the Commission concluded that the public funding of the hinterland road and rail connections was […]
read more
No Comments
30. April 2024  |   State Aid Uncovered by Phedon Nicolaides

A Case of a Narrow Tax that Is Not Selective
State Aid Blogs - State Aid Uncovered photos 11
Introduction On 17 April 2024, the General Court ruled, in case T-112/22, Ideella föreningen Svenska Bankföreningen med firma Svenska Bankföreningen, Näringsverksamhet & Länsförsäkringar Bank v Commission, that a Swedish tax on only nine banks was not selective by not taxing the many smaller banks.1 The applicants, a Swedish banking association and a Swedish bank, respectively, sought the annulment of Commission […]
read more
No Comments
2. April 2024  |   State Aid Uncovered by Phedon Nicolaides

The Court of Justice Conflates Objective Justification with Policy Objective, in the context of Public Support of Green Electricity
State Aid Blogs - State Aid Uncovered SM posts
Introduction Suppose a Member State subsidises the installation of solar panels on the roof of a corporate building situated at number 5 on Main Street. Is this a general measure because there is no other building in the whole country with the same address? Of course, it is not a general measure. The uniqueness of the address is irrelevant. Apart […]
read more
No Comments
16. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Undertakings May also Carry out Non-economic Activities
State Aid Blogs - State Aid Uncovered photos 1
Introduction An undertaking is any entity that carries out economic activities regardless of how it is classified in national law or how it is financed. The General Court, in its judgment of 20 December 2023, in case T-166/21, Autorità di sistema portuale del Mar Ligure occidentale v European Commission, also clarified that if an undertaking also carries out tasks assigned […]
read more
No Comments
2. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Selectivity
State Aid Blogs - State Aid Uncovered photos 1
Introduction On 14 December 2023, the Court of Justice, in its judgment in joined cases C-693/21 P and C-698/21 P, EDP España & Naturgy Energy Group v European Commission, faulted the Commission for failing to provide a sufficient explanation why a Spanish measure was selective in the meaning of Article 107(1) TFEU.1 According to the Court of Justice, the Commission […]
read more
No Comments
27. December 2023  |   State Aid Uncovered by Phedon Nicolaides

The Consequence of the Tax Autonomy of Member States
State Aid Blogs - State Aid Uncovered photos
Introduction The favourable tax treatment of multinational companies has long been in the sights of the Commission. However, the recent judgments on Fiat [C‑885/19 P, Fiat v Commission] and Engie [C‑454/21 P, Engie v Commission] have made it clear that Commission may not rely on principles which are not recognised in the tax laws of Member States. This fundamental rule […]
read more
No Comments
11. December 2023  |   State Aid Uncovered by Phedon Nicolaides

Member States Have Discretion to Determine their Own Tax System and Interpret its Provisions
State Aid Blogs - Untitled design 29
Introduction In the landmark cases on turnover taxes implemented by Hungary and Poland, the Court of Justice censured the European Commission for defining its own hypothetical reference tax system that was different from the relevant tax provisions in those two countries. The Court again faulted the Commission in its more recent judgments on advance tax rulings. Given the discretion of […]
read more
No Comments
7. November 2023  |   State Aid Uncovered by Phedon Nicolaides

Whether a Tax Measure Grants New Aid Must also be Assessed in the Context of the Relevant National Case Law
State Aid Blogs - Untitled design 11
Introduction The application of the concept of selectivity to tax measures requires a comparison of undertakings or activities that are in a similar factual or legal situation. A tax measure that differentiates between similar undertakings or activities is selective in the meaning of Article 107(1) TFEU, unless the differentiation can be justified on objective reasons. It follows that the proper […]
read more
No Comments
17. October 2023  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Damage
State Aid Blogs - Untitled design 10
Introduction On 28 September 2023, the Court of Justice, in case C-320/21 P, Ryanair v European Commission, delivered its first judgment in a series of appeals brought by Ryanair challenging the dismissal by the General Court of its action in multiple cases seeking the annulment of various Commission decisions authorising aid to airlines during the covid-19 pandemic. Both before the […]
read more
No Comments
« Previous PageNext Page »

T 398/21 ×

18. June 2024  |   State Aid Uncovered by Phedon Nicolaides

Obligations Imposed by the State Cannot Justify Tax Exemptions
State Aid Blogs - State Aid Uncovered photos 18
Introduction Over the past decade or so, the European Commission has found that multiple port operators have benefitted from State aid in the form of tax exemptions. This aid was in all cases found to be incompatible with the internal market, despite the claims of the port operators that the state had imposed on the public service obligations or that […]
read more
No Comments
4. June 2024  |   State Aid Uncovered by Phedon Nicolaides

Special Tax Treatment for a Major Infrastructure Project
State Aid Blogs - State Aid Uncovered photos 16
Introduction In April 2013, the Commission received a complaint alleging that State aid had been granted to the Oresund fixed link. The link is a major transport infrastructure project consisting of a bridge, an artificial island and tunnels between Denmark and Sweden. In October 2014, the Commission concluded that the public funding of the hinterland road and rail connections was […]
read more
No Comments
30. April 2024  |   State Aid Uncovered by Phedon Nicolaides

A Case of a Narrow Tax that Is Not Selective
State Aid Blogs - State Aid Uncovered photos 11
Introduction On 17 April 2024, the General Court ruled, in case T-112/22, Ideella föreningen Svenska Bankföreningen med firma Svenska Bankföreningen, Näringsverksamhet & Länsförsäkringar Bank v Commission, that a Swedish tax on only nine banks was not selective by not taxing the many smaller banks.1 The applicants, a Swedish banking association and a Swedish bank, respectively, sought the annulment of Commission […]
read more
No Comments
2. April 2024  |   State Aid Uncovered by Phedon Nicolaides

The Court of Justice Conflates Objective Justification with Policy Objective, in the context of Public Support of Green Electricity
State Aid Blogs - State Aid Uncovered SM posts
Introduction Suppose a Member State subsidises the installation of solar panels on the roof of a corporate building situated at number 5 on Main Street. Is this a general measure because there is no other building in the whole country with the same address? Of course, it is not a general measure. The uniqueness of the address is irrelevant. Apart […]
read more
No Comments
16. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Undertakings May also Carry out Non-economic Activities
State Aid Blogs - State Aid Uncovered photos 1
Introduction An undertaking is any entity that carries out economic activities regardless of how it is classified in national law or how it is financed. The General Court, in its judgment of 20 December 2023, in case T-166/21, Autorità di sistema portuale del Mar Ligure occidentale v European Commission, also clarified that if an undertaking also carries out tasks assigned […]
read more
No Comments
2. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Selectivity
State Aid Blogs - State Aid Uncovered photos 1
Introduction On 14 December 2023, the Court of Justice, in its judgment in joined cases C-693/21 P and C-698/21 P, EDP España & Naturgy Energy Group v European Commission, faulted the Commission for failing to provide a sufficient explanation why a Spanish measure was selective in the meaning of Article 107(1) TFEU.1 According to the Court of Justice, the Commission […]
read more
No Comments
27. December 2023  |   State Aid Uncovered by Phedon Nicolaides

The Consequence of the Tax Autonomy of Member States
State Aid Blogs - State Aid Uncovered photos
Introduction The favourable tax treatment of multinational companies has long been in the sights of the Commission. However, the recent judgments on Fiat [C‑885/19 P, Fiat v Commission] and Engie [C‑454/21 P, Engie v Commission] have made it clear that Commission may not rely on principles which are not recognised in the tax laws of Member States. This fundamental rule […]
read more
No Comments
11. December 2023  |   State Aid Uncovered by Phedon Nicolaides

Member States Have Discretion to Determine their Own Tax System and Interpret its Provisions
State Aid Blogs - Untitled design 29
Introduction In the landmark cases on turnover taxes implemented by Hungary and Poland, the Court of Justice censured the European Commission for defining its own hypothetical reference tax system that was different from the relevant tax provisions in those two countries. The Court again faulted the Commission in its more recent judgments on advance tax rulings. Given the discretion of […]
read more
No Comments
7. November 2023  |   State Aid Uncovered by Phedon Nicolaides

Whether a Tax Measure Grants New Aid Must also be Assessed in the Context of the Relevant National Case Law
State Aid Blogs - Untitled design 11
Introduction The application of the concept of selectivity to tax measures requires a comparison of undertakings or activities that are in a similar factual or legal situation. A tax measure that differentiates between similar undertakings or activities is selective in the meaning of Article 107(1) TFEU, unless the differentiation can be justified on objective reasons. It follows that the proper […]
read more
No Comments
17. October 2023  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Damage
State Aid Blogs - Untitled design 10
Introduction On 28 September 2023, the Court of Justice, in case C-320/21 P, Ryanair v European Commission, delivered its first judgment in a series of appeals brought by Ryanair challenging the dismissal by the General Court of its action in multiple cases seeking the annulment of various Commission decisions authorising aid to airlines during the covid-19 pandemic. Both before the […]
read more
No Comments
« Previous PageNext Page »

T 398/21 ×

18. June 2024  |   State Aid Uncovered by Phedon Nicolaides

Obligations Imposed by the State Cannot Justify Tax Exemptions
State Aid Blogs - State Aid Uncovered photos 18
Introduction Over the past decade or so, the European Commission has found that multiple port operators have benefitted from State aid in the form of tax exemptions. This aid was in all cases found to be incompatible with the internal market, despite the claims of the port operators that the state had imposed on the public service obligations or that […]
read more
No Comments
4. June 2024  |   State Aid Uncovered by Phedon Nicolaides

Special Tax Treatment for a Major Infrastructure Project
State Aid Blogs - State Aid Uncovered photos 16
Introduction In April 2013, the Commission received a complaint alleging that State aid had been granted to the Oresund fixed link. The link is a major transport infrastructure project consisting of a bridge, an artificial island and tunnels between Denmark and Sweden. In October 2014, the Commission concluded that the public funding of the hinterland road and rail connections was […]
read more
No Comments
30. April 2024  |   State Aid Uncovered by Phedon Nicolaides

A Case of a Narrow Tax that Is Not Selective
State Aid Blogs - State Aid Uncovered photos 11
Introduction On 17 April 2024, the General Court ruled, in case T-112/22, Ideella föreningen Svenska Bankföreningen med firma Svenska Bankföreningen, Näringsverksamhet & Länsförsäkringar Bank v Commission, that a Swedish tax on only nine banks was not selective by not taxing the many smaller banks.1 The applicants, a Swedish banking association and a Swedish bank, respectively, sought the annulment of Commission […]
read more
No Comments
2. April 2024  |   State Aid Uncovered by Phedon Nicolaides

The Court of Justice Conflates Objective Justification with Policy Objective, in the context of Public Support of Green Electricity
State Aid Blogs - State Aid Uncovered SM posts
Introduction Suppose a Member State subsidises the installation of solar panels on the roof of a corporate building situated at number 5 on Main Street. Is this a general measure because there is no other building in the whole country with the same address? Of course, it is not a general measure. The uniqueness of the address is irrelevant. Apart […]
read more
No Comments
16. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Undertakings May also Carry out Non-economic Activities
State Aid Blogs - State Aid Uncovered photos 1
Introduction An undertaking is any entity that carries out economic activities regardless of how it is classified in national law or how it is financed. The General Court, in its judgment of 20 December 2023, in case T-166/21, Autorità di sistema portuale del Mar Ligure occidentale v European Commission, also clarified that if an undertaking also carries out tasks assigned […]
read more
No Comments
2. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Selectivity
State Aid Blogs - State Aid Uncovered photos 1
Introduction On 14 December 2023, the Court of Justice, in its judgment in joined cases C-693/21 P and C-698/21 P, EDP España & Naturgy Energy Group v European Commission, faulted the Commission for failing to provide a sufficient explanation why a Spanish measure was selective in the meaning of Article 107(1) TFEU.1 According to the Court of Justice, the Commission […]
read more
No Comments
27. December 2023  |   State Aid Uncovered by Phedon Nicolaides

The Consequence of the Tax Autonomy of Member States
State Aid Blogs - State Aid Uncovered photos
Introduction The favourable tax treatment of multinational companies has long been in the sights of the Commission. However, the recent judgments on Fiat [C‑885/19 P, Fiat v Commission] and Engie [C‑454/21 P, Engie v Commission] have made it clear that Commission may not rely on principles which are not recognised in the tax laws of Member States. This fundamental rule […]
read more
No Comments
11. December 2023  |   State Aid Uncovered by Phedon Nicolaides

Member States Have Discretion to Determine their Own Tax System and Interpret its Provisions
State Aid Blogs - Untitled design 29
Introduction In the landmark cases on turnover taxes implemented by Hungary and Poland, the Court of Justice censured the European Commission for defining its own hypothetical reference tax system that was different from the relevant tax provisions in those two countries. The Court again faulted the Commission in its more recent judgments on advance tax rulings. Given the discretion of […]
read more
No Comments
7. November 2023  |   State Aid Uncovered by Phedon Nicolaides

Whether a Tax Measure Grants New Aid Must also be Assessed in the Context of the Relevant National Case Law
State Aid Blogs - Untitled design 11
Introduction The application of the concept of selectivity to tax measures requires a comparison of undertakings or activities that are in a similar factual or legal situation. A tax measure that differentiates between similar undertakings or activities is selective in the meaning of Article 107(1) TFEU, unless the differentiation can be justified on objective reasons. It follows that the proper […]
read more
No Comments
17. October 2023  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Damage
State Aid Blogs - Untitled design 10
Introduction On 28 September 2023, the Court of Justice, in case C-320/21 P, Ryanair v European Commission, delivered its first judgment in a series of appeals brought by Ryanair challenging the dismissal by the General Court of its action in multiple cases seeking the annulment of various Commission decisions authorising aid to airlines during the covid-19 pandemic. Both before the […]
read more
No Comments
« Previous PageNext Page »

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