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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17. August 2021  |   State Aid Uncovered by Phedon Nicolaides

The Problem of Multiple Awards of Aid to the Undertaking and to the Same Group
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Multiple awards of aid to the same undertaking are allowed as long as they cover different costs. Multiple awards of aid to the same group are allowed as long as aid does not leak from one undertaking in the group to another. Introduction In the first half of 2021, the General Court ruled in ten cases of appeal lodged by […]
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19. August 2021  |   Guest State Aid Blog by Lexxion Publisher

The European Commission’s Opening Decision in the German Lignite Phase-Out Case – Part II.
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The article is based on a legal opinion, that was given to LEAG. Doubts regarding the existence of an advantage – continued Compensation amounts based on a MEO settlement agreement An essential component of the compensation covering the full scope of any damages caused to the operators affected by the early closure is also the avoidance of legal and factual […]
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12. August 2021  |   Guest State Aid Blog by Lexxion Publisher

The European Commission’s Opening Decision in the German Lignite Phase-Out Case – Part I.
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The article is based on a legal opinion, that was given to LEAG. Introduction The European Green Deal envisages a clean and decarbonised energy sector with net-zero greenhouse gas emissions by 2050.[1] These ambitious objectives entrust the Member States with enormous tasks in connection with the transformation process, which must always be designed in a proportionate manner. For this purpose, […]
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10. August 2021  |   State Aid Uncovered by Phedon Nicolaides

When Do Legal Exemptions Constitute State Aid?
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Exemption from a fine does not constitute State aid when it is based on transparent and pre-determined criteria. Infringement of EU law determines the compatibility of State aid, not the existence of State aid. Introduction An exemption from legal requirements that confers a selective advantage does not necessarily amount to State aid. In most cases, when beneficiaries are found not […]
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3. August 2021  |   State Aid Uncovered by Phedon Nicolaides

Methods for Determining Property Value
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Member States may use different methods for determining the value of property as long as they produce similar results. Introduction The base for property taxation is normally the value of the property, not size or location. The difficulty in determining the value of property is that land or buildings have no intrinsic value. It all depends on the purpose for […]
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29. July 2021  |   Guest State Aid Blog by Lexxion Publisher

Pre- Notifications, Preliminary Investigations and the Rights of Third Parties in State Aid Procedures – Beware of the Black Hole!
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The persistently cautious approach of the Court of Justice of the European Union (CJEU) to recognizing any really meaningful rights for third parties in State aid proceedings before the European Commission as well as in judicial proceedings is well-known and frequently criticized. With the recent adoption of the new Climate Law at the end of June and the official launch […]
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27. July 2021  |   State Aid Uncovered by Phedon Nicolaides

A Rare Commission Decision on an SGEI Measure that Could Have Been Exempted from Notification
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A public service obligation must be imposed by an act of entrustment that describes in detail the terms of the obligation, identifies the undertaking that offers the service and lays down procedures for preventing over-compensation. Introduction The purpose of Commission Decision 2012/21 on services of general economic interest [SGEI] is, like the GBER, to exempt certain aid measures from prior […]
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20. July 2021  |   State Aid Uncovered by Phedon Nicolaides

The Italian Health System Is not Economic in Nature
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Certain elements of competition that raise efficiency do not undermine the social solidarity foundations of a health care system. Introduction A question that has been addressed by the Court of Justice but not in sufficient detail is whether the providers of non-economic health services can compete with each other. The answer is conditionally affirmative. Competition that does not undermine the […]
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15. July 2021  |   Guest State Aid Blog by Lexxion Publisher

Public Support to Ultrafast Networks in the Italian NRRP
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As part of the investments to support the digitisation, innovation and competitiveness of the production system[1], the Italian Recovery and Resilience Plan (NRRP) has allocated €6.71 billion for interventions in favor of ultra-fast networks (ultra-broadband and 5G)[2]. The amount will be deployed by 2026 to achieve the objectives defined in the “Italian Strategy for ultra-broadband”[3] in accordance with the EU […]
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13. July 2021  |   State Aid Uncovered by Phedon Nicolaides

Existing Aid, New Aid and Retroactive Application of a Block Exemption Regulation
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Changes to approved aid measures result in new aid. Only purely formal or administrative changes do not turn existing aid into new. Prolongation of an existing aid measure is not purely formal or administrative. Introduction Any change to an approved aid measure that affects its compatibility with the internal market turns it into a new aid that has to be […]
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19. January 2021  |   State Aid Uncovered by Phedon Nicolaides

Funding of Public Hospitals
State Aid Blogs - StateAidHub blogpost3 Hospitals
Public healthcare provided in accordance with the principle of social solidarity is not economic in nature. Introduction There are two sectors where economic and non-economic activities mix and cause potential State aid problems: healthcare and education. Healthcare and education provided by public institutions do not differ much from healthcare and education provided by private institutions. The critical difference is not […]
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12. January 2021  |   State Aid Uncovered by Phedon Nicolaides

A First Evaluation of Covid-19 State Aid
State Aid Blogs - StateAidHub blogpost2 Covid
There is a significant variation across Member States in terms of the number of aid measures as well as the amount of aid. Introduction On 17 December 2020, the European Parliament published a report evaluating the impact of State aid to combat covid-19.[1] The report was requested by the committee responsible for economic policy. The report is probably the first […]
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5. January 2021  |   State Aid Uncovered by Phedon Nicolaides

One Agreement, Two Parallel Systems: Subsidies in the Trade and Cooperation Agreement between the EU and the UK
State Aid Blogs - StateAidHub blogpost1 Brexit
The agreement on subsidies allows the UK to deviate from EU State aid rules. Introduction After the exit of the United Kingdom [UK] from the European Union [EU] on 31 January 2020, EU State aid rules continued to apply to the UK during a transitional period that came to an end on 31 December 2020. In the closing days of […]
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28. December 2020  |   State Aid Uncovered by Phedon Nicolaides

The Time Horizon of a Private Investor
State Aid Blogs - StateAidHub blogpost51
A public authority that claims that it invests for the long term, must still prove that its investment is likely to be profitable. Introduction Public authorities may invest in private companies. However, they need to behave as private investors otherwise they confer an advantage that constitutes State aid. In their defence, public authorities claiming that they act as private investors, […]
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21. December 2020  |   State Aid Uncovered by Phedon Nicolaides

Attribution to the State does not necessarily Imply Control by the State
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Prices fixed by the state do not necessarily confer control to the state over the private resources which are used to pay those prices. Introduction Judging from how many times EU courts have been asked to interpret the concept of state resources, it seems that one of the most difficult aspects of Article 107(1) TFEU is to determine whether funding […]
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15. December 2020  |   State Aid Uncovered by Phedon Nicolaides

The Law, Economics and Art of Compensation for Public Service Obligations
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State aid in the form of compensation for public service obligations must exclude any intangible benefits from the obligation, but may include reasonable profit. The Commission guidelines for State aid in agriculture and forestry, the block exemption regulations covering agriculture, forestry, fishery and aquaculture, and the Regulation on de minimis aid for fishery and aquaculture have been prolonged to 31 […]
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8. December 2020  |   State Aid Uncovered by Phedon Nicolaides

A Rare Case of Altmark-compliant SGEI (Part II)
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For a service to be in the general economic interest, it must be shown to fill a gap in the market or to offer what the market fails to provide adequately. [In case you have missed part I, you can access it here.] Introduction Services of general economic interest [SGEI] are important for the functioning of European societies. However, the […]
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1. December 2020  |   State Aid Uncovered by Phedon Nicolaides

A Rare Case of Altmark-compliant SGEI (Part I)
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For a service to be in the general economic interest, it must be shown to fill a gap in the market or to offer what the market fails to provide adequately. Introduction Services of general economic interest [SGEI] are important for the functioning of European societies. However, the granting of compensation to an undertaking for the provision of SGEI must […]
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24. November 2020  |   State Aid Uncovered by Phedon Nicolaides

De Minimis Aid
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If different awards of de minimis aid bring the total amount over the ceiling of EUR 200,000, Member States may withdraw aid already granted or reduce the amount of aid that is scheduled to be granted or simply refuse to grant aid so as to ensure that the total remains below the ceiling for any three-fiscal year period. Introduction A […]
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10. November 2020  |   State Aid Uncovered by Phedon Nicolaides

What is the Value of Informal Commission Communications?
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An official’s statement can be imputed to his authority if it can be reasonably assumed that the official speaks on behalf of the authority. Introduction It is often asked by national officials how much credence they should give to assurances by Commission officials in the absence of a formal Commission decision and what is the legal value of such assurances. […]
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