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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13. April 2021  |   State Aid Uncovered by Phedon Nicolaides

State Guarantee to an Energy Project
State Aid Blogs - StateAidHub blogpost15 gas
A state guarantee can bridge the funding gap of an infrastructure project. Introduction State aid rules allow energy infrastructure projects to be supported by as much aid as is necessary to bridge their “funding gap”; i.e. the difference between the initial investment cost and the present value of their expected net operating revenue which is the future gross revenue minus […]
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6. April 2021  |   State Aid Uncovered by Phedon Nicolaides

Lease Contracts and Competitive Selection
State Aid Blogs - cow 2436354 1920
Vague award criteria can be discriminatory and harm the transparency of the selection procedure. Introduction After receiving a complaint, the Commission opened a formal investigation into alleged State aid granted by the Estonian Ministry of Rural Affairs to AS Tartu Agro, a private limited company, which produced milk, meat and cereals. According to the complaint, the Ministry had granted unlawful […]
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30. March 2021  |   State Aid Uncovered by Phedon Nicolaides

“Global” Assessment of Tax Schemes
State Aid Blogs - StateAidHub blogpost13 Barcelona
It is incumbent on the Commission to carry out a global assessment of tax schemes. But it must take into account only those provisions of schemes that apply ex ante and do not depend on the circumstances of individual tax payers. Only when aid has to be recovered must the provisions that apply to the specific circumstances of individual tax […]
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23. March 2021  |   State Aid Uncovered by Phedon Nicolaides

Exclusive Rights and State Aid
State Aid Blogs - StateAidHub blogpost12 Poste Italiane
Exclusive rights may constitute State aid if they mandate payments with resources over which the state can exercise control. Compensation for the cost of public service obligations may be granted only if the obligations are clear and define a service that is different from market services. Introduction Article 106(1) TFEU requires Member States not to distort competition when they grant […]
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16. March 2021  |   State Aid Uncovered by Phedon Nicolaides

The Pan-European Guarantee Fund: The First State Aid Instrument at EU Level
State Aid Blogs - StateAidHub blogpost11 Funds
The Fund managed by the EIB constitutes State aid granted collectively by participating Member States. Introduction One of the many responses of the European Union to the economic harm wreaked by the pandemic was the establishment of the Pan-European Guarantee Fund [the Fund] by the European Investment Bank. Member States were invited to contribute to the Fund. This is both […]
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9. March 2021  |   State Aid Uncovered by Phedon Nicolaides

Can the Decision of a Private Entity be Imputed to the State?
State Aid Blogs - StateAidHub blogpost7 Bank Italy
A measure is imputable to the state whenever the state is involved in its adoption or shapes the decision that leads to its adoption. Introduction One of the trickiest aspects of determining whether a financial transaction involves State aid is its attribution or imputation to a decision of the state, especially when the entity providing the funding is private. Private […]
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2. March 2021  |   State Aid Uncovered by Phedon Nicolaides

State Aid May be Limited to Undertakings with Close Links with the National Economy (Part II)
State Aid Blogs - StateAidHub blogpost8 9 Ryanair
State aid may be used to compensate airlines licensed by domestic authorities for losses incurred as a result of national travel restrictions. [In case you have missed part I, you can access it here.] Introduction The European Commission acted swiftly to adopt a fairly accommodating and wide-ranging “Temporary Framework” to regulate State aid for the purposes of counter-acting the impact […]
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23. February 2021  |   State Aid Uncovered by Phedon Nicolaides

State Aid May be Limited to Undertakings with Close Links with the National Economy (Part I)
State Aid Blogs - StateAidHub blogpost8 9 Ryanair
State aid may be used to compensate airlines licensed by domestic authorities for losses incurred as a result of national travel restrictions. Introduction The European Commission acted swiftly to adopt a fairly accommodating and wide-ranging “Temporary Framework” to regulate State aid for the purposes of counter-acting the impact of covid-19. The Temporary Framework was welcomed by both Member States and […]
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16. February 2021  |   State Aid Uncovered by Phedon Nicolaides

Liquidity Assistance to Banks to Counter the Effects of Covid-19
State Aid Blogs - StateAidHub blogpost7 Bank Italy
Any direct public support of financial institutions affected by covid-19 has to comply with both State aid rules and the rules of the banking union. Introduction The Temporary Framework for State aid to combat covid-19 excludes financial institutions. But it does not mean that banks do not benefit indirectly from State aid granted to other sectors of the economy. This […]
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9. February 2021  |   State Aid Uncovered by Phedon Nicolaides

The State Acting as a Regulator
State Aid Blogs - StateAidHub blogpost6 NL gambling
When the state acts as a regulator, it does not have to charge a licence fee that maximises its revenue. Introduction Governments can influence the allocation of resources with at least three instruments: subsidisation, taxation and regulation. All three may contain State aid; if subsidies are selective, if taxes allow for exemptions and if regulation involves charges which are not […]
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1. September 2020  |   State Aid Uncovered by Phedon Nicolaides

Pari Passu Investments
State Aid Blogs - money 3115984 1920
Update on Temporary Framework: Number of approved and published covid-19 measures, as of 28 August 2020: 270* Legal basis: Article 107(2)(b): 28; Article 107(3)(b): 228; Article 107(3)(c): 21 Four Member States have implemented 15 or more covid-19 measures each: Belgium, Czech Republic, Denmark, Italy & Poland. – Average number of measures per Member State: 9.6 – Median number of measures […]
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25. August 2020  |   State Aid Uncovered by Phedon Nicolaides

The Non-economic Nature of Certain IT Services for Higher Education
State Aid Blogs - ipad 820272 1920 1
Publicly funded educational services are not economic in nature. Activities intrinsically linked to public tasks are not economic in nature. Update on Temporary Framework: Number of approved and published covid-19 measures, as of 21 August 2020: 262* Legal basis: Article 107(2)(b): 28; Article 107(3)(b): 220; Article 107(3)(c): 20 Four Member States have implemented 16 or more covid-19 measures each: Belgium, […]
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18. August 2020  |   State Aid Uncovered by Phedon Nicolaides

MEIP-Compliant Bank Recapitalisation: CEC Bank
State Aid Blogs - money 1064126 1920
An investor who is already a shareholder would take into account not only the return on new investment but also the impact on the overall profitability of the company in which capital is injected. Update on Temporary Framework: Number of approved and published covid-19 measures, as of 14 August 2020: 252* Legal basis: Article 107(2)(b): 27; Article 107(3)(b): 211; Article […]
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11. August 2020  |   State Aid Uncovered by Phedon Nicolaides

The Commission Must Act in Accordance with the Principle of Proportionality
State Aid Blogs - audit 3929140 1920
The opening of a formal investigation obliges Member States to suspend implementation of their State aid measures. Update on Temporary Framework: Number of approved and published covid-19 measures, as of 7 August 2020: 241* Legal basis: Article 107(2)(b): 25; Article 107(3)(b): 203; Article 107(3)(c): 18 Four Member States have implemented 15 or more covid-19 measures each: Belgium, Denmark, Italy & […]
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4. August 2020  |   State Aid Uncovered by Phedon Nicolaides

Draft Regional Aid Guidelines: Simpler and Clearer
Regional Aid
Update on Temporary Framework: Number of approved and published covid-19 measures, as of 31 July 2020: 235* Legal basis: Article 107(2)(b): 24; Article 107(3)(b): 198; Article 107(3)(c): 18 Five Member States have implemented 13 or more covid-19 measures each: Belgium, Denmark, France, Italy & Poland. – Average number of measures per Member State: 8.3 – Median number of measures per […]
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21. July 2020  |   State Aid Uncovered by Phedon Nicolaides

Taxation of Multinational Companies: The Apple Case – A Political Setback for the Commission, but a Victory on Principle
Mac
Defects, incompleteness and inconsistencies in tax rulings are not sufficient to prove the existence of an advantage in the meaning of Article 107(1) TFEU. Update on Temporary Framework: Number of approved and published covid-19 measures, as of 17 July 2020: 213* Legal basis: Article 107(2)(b): 21; Article 107(3)(b): 179; Article 107(3)(c): 18 Five Member States have implemented 13 or more […]
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14. July 2020  |   State Aid Uncovered by Phedon Nicolaides

2019 Competition Report
report
The Annual Competition Report is a useful document, but it should provide more information on the results of the ex post evaluations and ex post monitoring. Update on Temporary Framework: Number of approved and published COVID-19 measures, as of 10 July 2020: 202* Legal basis: Article 107(2)(b): 20; Article 107(3)(b): 171; Article 107(3)(c): 17 Six Member States have implemented 11 […]
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7. July 2020  |   State Aid Uncovered by Phedon Nicolaides

Third Amendment to the Temporary Framework & Prolongation of the GBER, De Minimis Regulation and Guidelines
european commission
Micro and small enterprises in difficulty are no longer excluded from the Temporary Framework. Undertakings in difficulty as a result of COVID-19 are no longer excluded from the GBER and Guidelines. Update on Temporary Framework: Number of approved and published COVID-19 measures, as of 3 July 2020: 185* Legal basis: Article 107(2)(b): 17 Article 107(3)(b): 155; Article 107(3)(c): 16 Five […]
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30. June 2020  |   State Aid Uncovered by Phedon Nicolaides

Health Insurance Based on Social Solidarity Is Non-economic
insurance protected
I am grateful to Peter Staviczky for comments on an earlier version of this article. I am, of course, solely responsible for the views expressed here. Public funding of health insurance systems based on social solidarity does not constitute State aid. Limited competition for the purpose of increasing efficiency does not affect the non-economic nature of such systems. Update on […]
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23. June 2020  |   State Aid Uncovered by Phedon Nicolaides

The Commission’s White Paper on Foreign Subsidies: A Real Problem that Needs Sharper Tools
State Aid Blogs - coins pixa
The European Commission proposes new instruments to counter unfair foreign subsidies and acquisition of European companies. Temporary Framework: Number of approved Covid-19 measures, as of 20 June 2020: 164* Legal basis: Article 107(2)(b): 14; Article 107(3)(b): 137; Article 107(3)(c): 15 Fifteen measures support R&D, testing or production of Covid-19 related products. Three measures support recapitalisation. The Member States with the […]
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