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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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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8. July 2021  |   Guest State Aid Blog by Alexander Rose

The UK’s New Subsidy Control Bill: Targeting a Faster, More Permissive Regime Than EU State Aid Rules
The long awaited Subsidy Control Bill has been published by the UK Government with bold promises that it will “create a new system for subsidies that can enable key domestic priorities, such as levelling up economic growth across the UK and driving our green industrial revolution“.  In this article we identify the main changes immediately emerging from the draft legislation, […]
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8. September 2020  |   State Aid Uncovered by Phedon Nicolaides

State Control without State Imputability
State Aid Blogs - Postnord
A snapshot of Covid-19 State aid Number of Covid-19 approved measures1, 2 [EU27 + UK, 4 September 2020] 19-15 13-11 9-7 6-4 BE CZ DK IT PL DE FR HU LV NL BG EL FI IE LT LU MT RO SE SK UK AT CY EE ES HR PT SI Source: DG Competition, author’s own calculations 1: Data exclude amendments […]
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1. September 2020  |   State Aid Uncovered by Phedon Nicolaides

Pari Passu Investments
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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
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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
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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
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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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