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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- SGEI ×

The Extent of the Discretion of Member States to Define Services of General Economic Interest (SGEI)

A service is classified as an SGEI not only when it is important for citizens but also when the market does not adequately supply it and one or more undertakings are compelled to provide it to specified consumers, in specified areas and on specified terms.   Introduction   The Treaty on the Functioning of the EU and the case law […]

Compensation for Public Service Obligations

Compensation for public service obligations may be fixed at less than the net extra costs of the provider of the public service to induce it to become more efficient.   Introduction   Every three years the UK determines the compensation it provides to the Post Office Limited (POL) for the extra costs of the public services it provides. Commission decision […]

Activities Linked to State Prerogatives

Economic activities which cannot be separated from the exercise of public powers cease to be economic in nature.   Introduction The dividing line between economic and non-economic activities is in a permanent state of flux. Although it is now clear that some activities fall within the powers and prerogatives of the state, while many others are carried out by the […]

15th Jubilee Feature – State Aid Experts Paying Court to EStAL: Mihalis Kekelekis

Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]

The Art, Science and Law of Funding Services of General Economic Interest

The compulsory nature of an assigned public mission makes the services covered by the mission different from those provided by market operators for profit.   Introduction The justification of government intervention for the purpose of ensuring delivery of adequate services of general economic interest [SGEI] and the design of measures that compensate providers of SGEI can be very tricky. This […]

Ex Post Definition of the Method of Compensation Makes State Aid Incompatible with the Internal Market

Compliance with public service obligations imposed on a provider of services of general economic interest should not be left to the discretion of that provider.   Introduction Last week’s article examined a public service obligation for providing maritime links to Corsica (view it here: http://stateaidhub.eu/blogs/stateaiduncovered/post/8370). This week’s article reviews a similar obligation for maritime links to the neighbouring island of Sardinia. […]

State Aid is on the Agenda: Deal or No Deal

With great pleasure we welcome again Professor Erika Szyszczak to our blog. Erika is a Research Professor in Law and a Fellow of the UK Trade Policy Observatory. She is currently the Special Adviser to the House of Lords Internal Market Sub-Committee in respect of its inquiry into Brexit: competition. She is the author of The Regulation of the State […]

Compliance with State Aid Rules in Cohesion Policy: A Special Report of the European Court of Auditors

Control of State aid by national authorities needs to be strengthened. Typical mistake is to grant aid after a project has started or to subsidise ineligible costs. Aid measures for risk capital, SGEI and R&D appear to be particularly prone to error.    Introduction   On 4 October 2016, the European Court of Auditors [ECA] published a special report 24/2016 […]

PART II: Combining Infrastructure Aid with SGEI Aid

After the spontaneous words on Brexit and State aid last week, I continue with the 2nd part of the post on infrastructure and SGEI today. A provider of services of general economic interest may receive both investment aid and compensation for the extra costs of public service obligations.   Part II: SGEI[1] Member States are free to determine the services […]

PART II: Regional Development and i) Market Economy Operator Test ii) Services of General Economic Interest

A market economy operator undertakes activities whose incremental revenue exceeds their incremental costs. A market economy operator ignores costs which are unaffected by those activities. A service of general economic interest has special characteristics that set it apart from other services with positive impact on the economy. Having a positive impact is not enough.   Part II: Public tasks and […]

- SGEI ×

The Extent of the Discretion of Member States to Define Services of General Economic Interest (SGEI)

A service is classified as an SGEI not only when it is important for citizens but also when the market does not adequately supply it and one or more undertakings are compelled to provide it to specified consumers, in specified areas and on specified terms.   Introduction   The Treaty on the Functioning of the EU and the case law […]

Compensation for Public Service Obligations

Compensation for public service obligations may be fixed at less than the net extra costs of the provider of the public service to induce it to become more efficient.   Introduction   Every three years the UK determines the compensation it provides to the Post Office Limited (POL) for the extra costs of the public services it provides. Commission decision […]

Activities Linked to State Prerogatives

Economic activities which cannot be separated from the exercise of public powers cease to be economic in nature.   Introduction The dividing line between economic and non-economic activities is in a permanent state of flux. Although it is now clear that some activities fall within the powers and prerogatives of the state, while many others are carried out by the […]

15th Jubilee Feature – State Aid Experts Paying Court to EStAL: Mihalis Kekelekis

Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]

The Art, Science and Law of Funding Services of General Economic Interest

The compulsory nature of an assigned public mission makes the services covered by the mission different from those provided by market operators for profit.   Introduction The justification of government intervention for the purpose of ensuring delivery of adequate services of general economic interest [SGEI] and the design of measures that compensate providers of SGEI can be very tricky. This […]

Ex Post Definition of the Method of Compensation Makes State Aid Incompatible with the Internal Market

Compliance with public service obligations imposed on a provider of services of general economic interest should not be left to the discretion of that provider.   Introduction Last week’s article examined a public service obligation for providing maritime links to Corsica (view it here: http://stateaidhub.eu/blogs/stateaiduncovered/post/8370). This week’s article reviews a similar obligation for maritime links to the neighbouring island of Sardinia. […]

State Aid is on the Agenda: Deal or No Deal

With great pleasure we welcome again Professor Erika Szyszczak to our blog. Erika is a Research Professor in Law and a Fellow of the UK Trade Policy Observatory. She is currently the Special Adviser to the House of Lords Internal Market Sub-Committee in respect of its inquiry into Brexit: competition. She is the author of The Regulation of the State […]

Compliance with State Aid Rules in Cohesion Policy: A Special Report of the European Court of Auditors

Control of State aid by national authorities needs to be strengthened. Typical mistake is to grant aid after a project has started or to subsidise ineligible costs. Aid measures for risk capital, SGEI and R&D appear to be particularly prone to error.    Introduction   On 4 October 2016, the European Court of Auditors [ECA] published a special report 24/2016 […]

PART II: Combining Infrastructure Aid with SGEI Aid

After the spontaneous words on Brexit and State aid last week, I continue with the 2nd part of the post on infrastructure and SGEI today. A provider of services of general economic interest may receive both investment aid and compensation for the extra costs of public service obligations.   Part II: SGEI[1] Member States are free to determine the services […]

PART II: Regional Development and i) Market Economy Operator Test ii) Services of General Economic Interest

A market economy operator undertakes activities whose incremental revenue exceeds their incremental costs. A market economy operator ignores costs which are unaffected by those activities. A service of general economic interest has special characteristics that set it apart from other services with positive impact on the economy. Having a positive impact is not enough.   Part II: Public tasks and […]

- SGEI ×

The Extent of the Discretion of Member States to Define Services of General Economic Interest (SGEI)

A service is classified as an SGEI not only when it is important for citizens but also when the market does not adequately supply it and one or more undertakings are compelled to provide it to specified consumers, in specified areas and on specified terms.   Introduction   The Treaty on the Functioning of the EU and the case law […]

Compensation for Public Service Obligations

Compensation for public service obligations may be fixed at less than the net extra costs of the provider of the public service to induce it to become more efficient.   Introduction   Every three years the UK determines the compensation it provides to the Post Office Limited (POL) for the extra costs of the public services it provides. Commission decision […]

Activities Linked to State Prerogatives

Economic activities which cannot be separated from the exercise of public powers cease to be economic in nature.   Introduction The dividing line between economic and non-economic activities is in a permanent state of flux. Although it is now clear that some activities fall within the powers and prerogatives of the state, while many others are carried out by the […]

15th Jubilee Feature – State Aid Experts Paying Court to EStAL: Mihalis Kekelekis

Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]

The Art, Science and Law of Funding Services of General Economic Interest

The compulsory nature of an assigned public mission makes the services covered by the mission different from those provided by market operators for profit.   Introduction The justification of government intervention for the purpose of ensuring delivery of adequate services of general economic interest [SGEI] and the design of measures that compensate providers of SGEI can be very tricky. This […]

Ex Post Definition of the Method of Compensation Makes State Aid Incompatible with the Internal Market

Compliance with public service obligations imposed on a provider of services of general economic interest should not be left to the discretion of that provider.   Introduction Last week’s article examined a public service obligation for providing maritime links to Corsica (view it here: http://stateaidhub.eu/blogs/stateaiduncovered/post/8370). This week’s article reviews a similar obligation for maritime links to the neighbouring island of Sardinia. […]

State Aid is on the Agenda: Deal or No Deal

With great pleasure we welcome again Professor Erika Szyszczak to our blog. Erika is a Research Professor in Law and a Fellow of the UK Trade Policy Observatory. She is currently the Special Adviser to the House of Lords Internal Market Sub-Committee in respect of its inquiry into Brexit: competition. She is the author of The Regulation of the State […]

Compliance with State Aid Rules in Cohesion Policy: A Special Report of the European Court of Auditors

Control of State aid by national authorities needs to be strengthened. Typical mistake is to grant aid after a project has started or to subsidise ineligible costs. Aid measures for risk capital, SGEI and R&D appear to be particularly prone to error.    Introduction   On 4 October 2016, the European Court of Auditors [ECA] published a special report 24/2016 […]

PART II: Combining Infrastructure Aid with SGEI Aid

After the spontaneous words on Brexit and State aid last week, I continue with the 2nd part of the post on infrastructure and SGEI today. A provider of services of general economic interest may receive both investment aid and compensation for the extra costs of public service obligations.   Part II: SGEI[1] Member States are free to determine the services […]

PART II: Regional Development and i) Market Economy Operator Test ii) Services of General Economic Interest

A market economy operator undertakes activities whose incremental revenue exceeds their incremental costs. A market economy operator ignores costs which are unaffected by those activities. A service of general economic interest has special characteristics that set it apart from other services with positive impact on the economy. Having a positive impact is not enough.   Part II: Public tasks and […]

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