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.

Subscribe now!

2. February 2021  |   State Aid Uncovered by Phedon Nicolaides

Helsinki Busses, Loans, Article 93 and Indemnification
State Aid Blogs - StateAidHub blogpost5 Helsinki bus
Bus transportation provided by public authorities constitutes economic activity. Loans given by a public authority to its transport unit have to be priced at market rates. The market value of public assets sold to third parties has to reflect any state indemnities. Temporary Framework The European Commission announced on 28 January 2021 a fifth amendment to the Temporary Framework. [1] […]
read more
No Comments
26. January 2021  |   State Aid Uncovered by Phedon Nicolaides

Training and State Resources
State Aid Blogs - StateAidHub blogpost4 training
The definition of quality indicators and the establishment of certificates of quality do not amount to control by the state over the resources belonging to non-state entities. Introduction Consider the case of a public university which decides to finance the proposal of one of its researchers to launch a research project in collaboration with a private company. For sure the […]
read more
No Comments
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 […]
read more
No Comments
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 […]
read more
No Comments
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 […]
read more
No Comments
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, […]
read more
No Comments
21. December 2020  |   State Aid Uncovered by Phedon Nicolaides

Attribution to the State does not necessarily Imply Control by the State
State Aid Blogs - towel 1838210 1920 1
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 […]
read more
No Comments
15. December 2020  |   State Aid Uncovered by Phedon Nicolaides

The Law, Economics and Art of Compensation for Public Service Obligations
State Aid Blogs - post sign 1893086 1920 1
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 […]
read more
No Comments
8. December 2020  |   State Aid Uncovered by Phedon Nicolaides

A Rare Case of Altmark-compliant SGEI (Part II)
State Aid Blogs - container 1638068 1920
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 […]
read more
No Comments
1. December 2020  |   State Aid Uncovered by Phedon Nicolaides

A Rare Case of Altmark-compliant SGEI (Part I)
State Aid Blogs - container 1638068 1920
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 […]
read more
No Comments
« Previous PageNext Page »

16. June 2020  |   State Aid Uncovered by Phedon Nicolaides

Direct v Indirect Advantages: The Case of Sardinian Airports
State Aid Blogs - ryanair 2798896 1920
Public funding that flows through intermediaries to third parties also counts as a state resource if the intermediaries carry out instructions by the funding authority. Temporary Framework: Number of approved covid-19 measures, as of 12 June 2020: 154* Legal basis: Article 107(2)(b): 14; Article 107(3)(b): 130; Article 107(3)(c): 14 Three recapitalisation measures have been approved [Finland, Lithuania & Poland]. The […]
read more
No Comments
9. June 2020  |   State Aid Uncovered by Phedon Nicolaides

Private Investor and Preferential Regulatory Treatment
pills on money
The existence of an advantage has to be proven, not presumed just because its absence cannot be confirmed. Preferential treatment may distort competition but it is not necessarily State aid if there is no transfer of state resources. Temporary Framework: Number of approved covid-19 measures, as of 5 June 2020: 148* Legal basis: Article 107(2)(b): 13; Article 107(3)(b): 125; Article […]
read more
No Comments
2. June 2020  |   State Aid Uncovered by Phedon Nicolaides

i) Investor-State Arbitration ii) Recovery of Incompatible State Aid iii) State Aid Scoreboard 2019
Euromünzen
Member States abolish bilateral investment treaties between themselves. When the Commission orders recovery of incompatible State aid, interest has to be added to the recoverable amount for the whole period of illegality regardless of any national limitation rules. In 2018, Member States granted EUR 121 billion to industry and services, EUR 6.3 billion to agriculture and EUR 50 billion to […]
read more
No Comments
26. May 2020  |   State Aid Uncovered by Phedon Nicolaides

State Aid for i) Water Development ii) Travel
State Aid Blogs - StateAidHub blogpost21 water development travel
Aid to individuals in the context of social policy is compatible with the internal market as long as it is granted without discrimination on the origin of products or services. Temporary Framework: Number of approved covid-19 measures, as of 22 May 2020: 129* Legal basis: Article 107(2)(b): 9; Article 107(3)(b): 111; Article 107(3)(c): 12 * Excludes amendments to previously notified […]
read more
No Comments
19. May 2020  |   State Aid Uncovered by Phedon Nicolaides

No New Aid to Undertakings that Have not Yet Repaid Incompatible Aid
Money in Hands
There is no rule in EU law obliging Member States to grant State aid. The European Commission may refuse to authorise aid until previous aid that was found to be incompatible with the internal market is paid back. Temporary Framework: Number of approved covid-19 measures, as of 16 May 2020: 125* Legal basis: Article 107(2)(b): 10; Article 107(3)(b): 105; Article […]
read more
No Comments
12. May 2020  |   State Aid Uncovered by Phedon Nicolaides

Advantage Must be Proven, Not Assumed
Road sign "Wrong Way"
The European Commission has to consider whether the private investor principle is applicable in cases of state investments. It is for Member States to prove that their investments conform with the private investor principle. Temporary Framework As of 9 May 2020, the European Commission had approved 113 State aid measures to combat covid-19. Their legal basis was: Article 107(2)(b): 10; […]
read more
No Comments
5. May 2020  |   State Aid Uncovered by Phedon Nicolaides

Non-recovery of Incompatible State aid Is Costly
corona virus poster
Legal and practical difficulties in the recovery of incompatible State aid do not constitute justifiable “absolute impossibility”. Temporary Framework On 1 May, the total number of State aid measures to combat covid-19 approved by the European Commission reached 102. Their legal basis was: Article 107(2)(b): 9; Article 107(3)(b): 86; Article 107(3)(c): 7   Introduction The 2020 Temporary Framework for State […]
read more
2 Comments
27. April 2020  |   State Aid Uncovered by Phedon Nicolaides

Identification of Undertakings in Difficulty
corona virus poster
A company is in difficulty if, in practice, its accumulated net losses exceed 50% of its subscribed capital, regardless of whether the subscribed capital is formally written down. The classification of a company as being in difficulty is independent of the sector in which it operates and of whether a private investor would be willing to invest in it. Temporary […]
read more
7 Comments
20. April 2020  |   State Aid Uncovered by Phedon Nicolaides

How to Price a Guarantee
Football ball on a field
The pricing of a guarantee must take into account not only the financial situation of the borrower but also the value of any collateral. Temporary Framework As of 17 April 2020, the European Commission authorised 61 State aid measures from 23 Member States and the UK to combat covid-19.   Introduction State guarantees on loans make up the largest category […]
read more
No Comments
14. April 2020  |   State Aid Uncovered by Phedon Nicolaides

Errors in State aid Procedures Need not Result in Annulment of a Commission Decision
State Aid Blogs - StateAidHub blogpost15 airport 2
Interested parties have a right to know how the compatibility of aid with the internal market is assessed. Temporary Framework developments As of 13 April 2020, the European Commission had authorised 51 measures adopted by 23 Member States. According to the statement of the Eurozone finance ministers of 9 April 2020, Member States had provided liquidity in the form of […]
read more
No Comments
« Previous PageNext Page »

Subscribe to our newsletter for updates on legal developments, upcoming conferences, workshops, and publications in your areas of interest.

Newsletter: Subscribe now