Public service obligations may cover both profitable and unprofitable segments of the market. Introduction 18 January 2017, the General Court delivered its judgment in case T-92/11 RENV, Jørgen Andersen, v European Commission.[1] Mr Andersen appealed against Commission Decision 2011/3 which concluded that public service contracts between the Danish Ministry of Transport and Danske Statsbaner [DSB], the incumbent train operator, contained […]
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.
Guest State Aid Blog ×
13. October 2015 |
State Aid Uncovered
by Phedon Nicolaides
When Member States impose PSOs they are never allowed to grant even a single euro in excess of the net extra costs of the PSO. That is prohibited for the simple reason that it results in over-compensation. Introduction The Lexxion seminar on state aid for transport and transport infrastructure that took place in Brussels on 21-22 September (view […]
15. September 2015 |
State Aid Uncovered
by Phedon Nicolaides
Compensation for public service obligations is compatible with the internal market when, at minimum, a PSO is well defined in an entrustment constituting an official act of a public authority, the revenues and costs of the PSO are clearly identified and separated from other commercial activities and the compensation does not exceed the net extra costs of the PSO. Compensation […]
19. May 2015 |
State Aid Uncovered
by Phedon Nicolaides
Even efficient companies will fail the 4th Altmark criterion if their costs are not proven to be comparable to those of a typical and well-equipped undertaking. Public funding of infrastructure is not State aid to users only if access is open to all. Public funding for training to raise social awareness is still State aid if it relieves companies of […]
3. February 2015 |
State Aid Uncovered
by Phedon Nicolaides
Security of energy supply can be a service of general economic interest. Avoiding harm to the environment is not one of the principles that underpin the internal market and which may not be violated by State aid measures. Determining whether competition is distorted does not require definition of the relevant markets. This article examines two apparently different but in […]
30. May 2014 |
State Aid Uncovered
by Phedon Nicolaides
The imposition of a public service obligation must be preceded by market analysis that shows that the market underprovides. For compensation of public service obligations to be compatible aid, it must satisfy the first three Altmark criteria. Surprisingly, the first three Altmark criteria must also be satisfied [in addition to the 4th criterion] for public service compensation in order not to constitute […]
4. April 2014 |
State Aid Uncovered
by Phedon Nicolaides
Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how […]
26. September 2013 |
State Aid Uncovered
by Phedon Nicolaides
Introduction In the landmark judgment in Leipzig Halle, the General Court stated that infrastructure which is inseparable from economic activity is itself economic and its public funding can fall in principle within the scope of Article 107(1) TFEU. The Court of Justice has confirmed this principle. On 12 September 2013, the General Court in its judgment in case T-347/09, Germany […]
20. May 2013 |
State Aid Uncovered
by Phedon Nicolaides
Introduction This posting reviews the judgment of the Court of Justice of the European Union in two joined cases: Eric Libert, et al v Gouvernement Flamand, (C‑197/11) and All Projects & Developments NV and Others v Vlaamse Regering, (C‑203/11).[1] The judgment which was rendered on 8 May 2013 is important because it addresses several issues concerning public service obligations, their relationship with […]
Guest State Aid Blog ×
7. February 2017 |
State Aid Uncovered
by Phedon Nicolaides
Public service obligations may cover both profitable and unprofitable segments of the market. Introduction 18 January 2017, the General Court delivered its judgment in case T-92/11 RENV, Jørgen Andersen, v European Commission.[1] Mr Andersen appealed against Commission Decision 2011/3 which concluded that public service contracts between the Danish Ministry of Transport and Danske Statsbaner [DSB], the incumbent train operator, contained […]
13. October 2015 |
State Aid Uncovered
by Phedon Nicolaides
When Member States impose PSOs they are never allowed to grant even a single euro in excess of the net extra costs of the PSO. That is prohibited for the simple reason that it results in over-compensation. Introduction The Lexxion seminar on state aid for transport and transport infrastructure that took place in Brussels on 21-22 September (view […]
15. September 2015 |
State Aid Uncovered
by Phedon Nicolaides
Compensation for public service obligations is compatible with the internal market when, at minimum, a PSO is well defined in an entrustment constituting an official act of a public authority, the revenues and costs of the PSO are clearly identified and separated from other commercial activities and the compensation does not exceed the net extra costs of the PSO. Compensation […]
19. May 2015 |
State Aid Uncovered
by Phedon Nicolaides
Even efficient companies will fail the 4th Altmark criterion if their costs are not proven to be comparable to those of a typical and well-equipped undertaking. Public funding of infrastructure is not State aid to users only if access is open to all. Public funding for training to raise social awareness is still State aid if it relieves companies of […]
3. February 2015 |
State Aid Uncovered
by Phedon Nicolaides
Security of energy supply can be a service of general economic interest. Avoiding harm to the environment is not one of the principles that underpin the internal market and which may not be violated by State aid measures. Determining whether competition is distorted does not require definition of the relevant markets. This article examines two apparently different but in […]
30. May 2014 |
State Aid Uncovered
by Phedon Nicolaides
The imposition of a public service obligation must be preceded by market analysis that shows that the market underprovides. For compensation of public service obligations to be compatible aid, it must satisfy the first three Altmark criteria. Surprisingly, the first three Altmark criteria must also be satisfied [in addition to the 4th criterion] for public service compensation in order not to constitute […]
4. April 2014 |
State Aid Uncovered
by Phedon Nicolaides
Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how […]
26. September 2013 |
State Aid Uncovered
by Phedon Nicolaides
Introduction In the landmark judgment in Leipzig Halle, the General Court stated that infrastructure which is inseparable from economic activity is itself economic and its public funding can fall in principle within the scope of Article 107(1) TFEU. The Court of Justice has confirmed this principle. On 12 September 2013, the General Court in its judgment in case T-347/09, Germany […]
20. May 2013 |
State Aid Uncovered
by Phedon Nicolaides
Introduction This posting reviews the judgment of the Court of Justice of the European Union in two joined cases: Eric Libert, et al v Gouvernement Flamand, (C‑197/11) and All Projects & Developments NV and Others v Vlaamse Regering, (C‑203/11).[1] The judgment which was rendered on 8 May 2013 is important because it addresses several issues concerning public service obligations, their relationship with […]
Guest State Aid Blog ×
7. February 2017 |
State Aid Uncovered
by Phedon Nicolaides
Public service obligations may cover both profitable and unprofitable segments of the market. Introduction 18 January 2017, the General Court delivered its judgment in case T-92/11 RENV, Jørgen Andersen, v European Commission.[1] Mr Andersen appealed against Commission Decision 2011/3 which concluded that public service contracts between the Danish Ministry of Transport and Danske Statsbaner [DSB], the incumbent train operator, contained […]
13. October 2015 |
State Aid Uncovered
by Phedon Nicolaides
When Member States impose PSOs they are never allowed to grant even a single euro in excess of the net extra costs of the PSO. That is prohibited for the simple reason that it results in over-compensation. Introduction The Lexxion seminar on state aid for transport and transport infrastructure that took place in Brussels on 21-22 September (view […]
15. September 2015 |
State Aid Uncovered
by Phedon Nicolaides
Compensation for public service obligations is compatible with the internal market when, at minimum, a PSO is well defined in an entrustment constituting an official act of a public authority, the revenues and costs of the PSO are clearly identified and separated from other commercial activities and the compensation does not exceed the net extra costs of the PSO. Compensation […]
19. May 2015 |
State Aid Uncovered
by Phedon Nicolaides
Even efficient companies will fail the 4th Altmark criterion if their costs are not proven to be comparable to those of a typical and well-equipped undertaking. Public funding of infrastructure is not State aid to users only if access is open to all. Public funding for training to raise social awareness is still State aid if it relieves companies of […]
3. February 2015 |
State Aid Uncovered
by Phedon Nicolaides
Security of energy supply can be a service of general economic interest. Avoiding harm to the environment is not one of the principles that underpin the internal market and which may not be violated by State aid measures. Determining whether competition is distorted does not require definition of the relevant markets. This article examines two apparently different but in […]
30. May 2014 |
State Aid Uncovered
by Phedon Nicolaides
The imposition of a public service obligation must be preceded by market analysis that shows that the market underprovides. For compensation of public service obligations to be compatible aid, it must satisfy the first three Altmark criteria. Surprisingly, the first three Altmark criteria must also be satisfied [in addition to the 4th criterion] for public service compensation in order not to constitute […]
4. April 2014 |
State Aid Uncovered
by Phedon Nicolaides
Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how […]
26. September 2013 |
State Aid Uncovered
by Phedon Nicolaides
Introduction In the landmark judgment in Leipzig Halle, the General Court stated that infrastructure which is inseparable from economic activity is itself economic and its public funding can fall in principle within the scope of Article 107(1) TFEU. The Court of Justice has confirmed this principle. On 12 September 2013, the General Court in its judgment in case T-347/09, Germany […]
20. May 2013 |
State Aid Uncovered
by Phedon Nicolaides
Introduction This posting reviews the judgment of the Court of Justice of the European Union in two joined cases: Eric Libert, et al v Gouvernement Flamand, (C‑197/11) and All Projects & Developments NV and Others v Vlaamse Regering, (C‑203/11).[1] The judgment which was rendered on 8 May 2013 is important because it addresses several issues concerning public service obligations, their relationship with […]