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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State Aid Uncovered ×

7. April 2020  |   State Aid Uncovered by Phedon Nicolaides

EU Decisions Override National Decisions on Compensation for Public Service Obligations
State Aid Blogs - StateAidHub blogpost14 Public Service Obligations 1
The principle of res judicata cannot be used to avoid recovery of incompatible State aid.   An update on State aid measures to counter the impact of COVID-19 As of 3 April 2020, the Commission has approved 29 measures submitted by 16 Member States. Article 107(3)(b) is the legal basis for 26 of those measures, while Article 107(2)(b) is the […]
read more
No Comments
31. March 2020  |   State Aid Uncovered by Phedon Nicolaides

How to Make Good the Damage Caused by a Natural Disaster
State Aid Blogs - sergio torres nUw2nIGeGYY unsplash
Compensation for costs incurred as a result of a natural disaster is State aid. The compensation must be for damage directly caused by the natural disaster. Introduction State aid to make good the damage caused by an “exceptional occurrence” such as the corona virus covid-19 is compatible with the internal market. The legal basis for exemption is Article 107(2)(b). Of […]
read more
No Comments
20. March 2020  |   State Aid Uncovered by Phedon Nicolaides

A New Temporary State aid Framework to Fight the Effects of the Corona Virus
corona virus poster
Member States will be allowed to provide grants, guarantees and loans to companies to alleviate the effects of the corona virus. Introduction At the end of 2009, the European Commission adopted a Temporary Framework of State aid rules to enable Member States to support companies that were harmed by the outbreak of the financial crisis in 2008. Now, the corona […]
read more
No Comments
17. March 2020  |   State Aid Uncovered by Phedon Nicolaides

Has an Economic Myth Become a Legal Fact? The Case of Turnover Taxes
State Aid Blogs - Turnover
Progressive turnover taxes are not contrary to the freedom of establishment or the right of equal treatment. Introduction Recent cases involving “turnover” taxes have sparked a debate in the literature and on the conference circuit not only because they raise novel issues but also because of their implications for other taxes which are being mooted by European governments. As Advocate-General […]
read more
No Comments
11. March 2020  |   State Aid Uncovered by Phedon Nicolaides

Financial Transactions between the State and Banks with No State aid
State Aid Blogs - StateAidHub blogpost10 state guarantees
Capital injections, state guarantees and loans granted to banks can be free of State aid if they are priced at market rates which reflect the risk borne by the state. Introduction If banks can obtain capital, loans and guarantees from the state at market rates why don’t they go directly to the market? No one has yet given a satisfactory […]
read more
No Comments
3. March 2020  |   State Aid Uncovered by Phedon Nicolaides

Public Funding of Infrastructure without State Aid
State Aide_Infrastructure
The existence of State aid must be checked at the level of both the direct and indirect beneficiaries who are the owners and users of infrastructure, respectively. If payments to private land owners are to be free of State aid, they must be calculated on the basis of an objective formula that takes into account the size and value of […]
read more
No Comments
25. February 2020  |   State Aid Uncovered by Phedon Nicolaides

Environmental Remediation and State Liability
State Aid Blogs - StateAidHub blogpost8 environmental remediation
Liability assumed by the state for the actions of an undertaking constitutes a selective advantage that may result in potential transfer of state resources in the future. Introduction On 16 January 2020 the General Court delivered its judgment in case T‑257/18, Iberpotash v European Commission.[1] Iberpotash, a Spanish company, appealed against Commission decision 2018/118. Iberpotash owns and operates potash mines […]
read more
No Comments
21. February 2020  |   State Aid Uncovered by Phedon Nicolaides

From Waste to Energy
State Aid Blogs - StateAidHub blogpost7 waste to energy
State aid to incentivise the use of waste to produce energy must be individually notified. Introduction Waste management is an increasingly important aspect of policies aiming to prevent environmental degradation and slow down climate change. As the market for recycling expands and waste management becomes more profitable, there is also a higher risk of harm to competition by State aid. […]
read more
No Comments
12. February 2020  |   State Aid Uncovered by Phedon Nicolaides

An Important (and so far, Unique) Project of Common European Interest
State Aid Blogs - StateAidHub blogpost6 microplastics IPCEI
State aid for important R&D projects of common European interest can cover different costs than the RDI Framework and at different rates of intensity. Introduction Several Member States have demanded a more active industrial policy to counteract perceived unfair foreign competition. The Commission’s response has partly been that current rules do allow cross-border cooperation for the development of innovative products. […]
read more
No Comments
4. February 2020  |   State Aid Uncovered by Phedon Nicolaides

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation
State Aid Blogs - StateAidHub blogpost5 SGEI
The “net avoided cost methodology” takes into account only incremental costs. Introduction The two most difficult issues in the design of State aid measures to support services of general economic interest [SGEI] are the proper definition of the public service obligation [PSO] and the identification of the “counterfactual” on the basis of which the public service compensation [PSC] is calculated. […]
read more
No Comments
« Previous PageNext Page »

State Aid Uncovered ×

7. April 2020  |   State Aid Uncovered by Phedon Nicolaides

EU Decisions Override National Decisions on Compensation for Public Service Obligations
State Aid Blogs - StateAidHub blogpost14 Public Service Obligations 1
The principle of res judicata cannot be used to avoid recovery of incompatible State aid.   An update on State aid measures to counter the impact of COVID-19 As of 3 April 2020, the Commission has approved 29 measures submitted by 16 Member States. Article 107(3)(b) is the legal basis for 26 of those measures, while Article 107(2)(b) is the […]
read more
No Comments
31. March 2020  |   State Aid Uncovered by Phedon Nicolaides

How to Make Good the Damage Caused by a Natural Disaster
State Aid Blogs - sergio torres nUw2nIGeGYY unsplash
Compensation for costs incurred as a result of a natural disaster is State aid. The compensation must be for damage directly caused by the natural disaster. Introduction State aid to make good the damage caused by an “exceptional occurrence” such as the corona virus covid-19 is compatible with the internal market. The legal basis for exemption is Article 107(2)(b). Of […]
read more
No Comments
20. March 2020  |   State Aid Uncovered by Phedon Nicolaides

A New Temporary State aid Framework to Fight the Effects of the Corona Virus
corona virus poster
Member States will be allowed to provide grants, guarantees and loans to companies to alleviate the effects of the corona virus. Introduction At the end of 2009, the European Commission adopted a Temporary Framework of State aid rules to enable Member States to support companies that were harmed by the outbreak of the financial crisis in 2008. Now, the corona […]
read more
No Comments
17. March 2020  |   State Aid Uncovered by Phedon Nicolaides

Has an Economic Myth Become a Legal Fact? The Case of Turnover Taxes
State Aid Blogs - Turnover
Progressive turnover taxes are not contrary to the freedom of establishment or the right of equal treatment. Introduction Recent cases involving “turnover” taxes have sparked a debate in the literature and on the conference circuit not only because they raise novel issues but also because of their implications for other taxes which are being mooted by European governments. As Advocate-General […]
read more
No Comments
11. March 2020  |   State Aid Uncovered by Phedon Nicolaides

Financial Transactions between the State and Banks with No State aid
State Aid Blogs - StateAidHub blogpost10 state guarantees
Capital injections, state guarantees and loans granted to banks can be free of State aid if they are priced at market rates which reflect the risk borne by the state. Introduction If banks can obtain capital, loans and guarantees from the state at market rates why don’t they go directly to the market? No one has yet given a satisfactory […]
read more
No Comments
3. March 2020  |   State Aid Uncovered by Phedon Nicolaides

Public Funding of Infrastructure without State Aid
State Aide_Infrastructure
The existence of State aid must be checked at the level of both the direct and indirect beneficiaries who are the owners and users of infrastructure, respectively. If payments to private land owners are to be free of State aid, they must be calculated on the basis of an objective formula that takes into account the size and value of […]
read more
No Comments
25. February 2020  |   State Aid Uncovered by Phedon Nicolaides

Environmental Remediation and State Liability
State Aid Blogs - StateAidHub blogpost8 environmental remediation
Liability assumed by the state for the actions of an undertaking constitutes a selective advantage that may result in potential transfer of state resources in the future. Introduction On 16 January 2020 the General Court delivered its judgment in case T‑257/18, Iberpotash v European Commission.[1] Iberpotash, a Spanish company, appealed against Commission decision 2018/118. Iberpotash owns and operates potash mines […]
read more
No Comments
21. February 2020  |   State Aid Uncovered by Phedon Nicolaides

From Waste to Energy
State Aid Blogs - StateAidHub blogpost7 waste to energy
State aid to incentivise the use of waste to produce energy must be individually notified. Introduction Waste management is an increasingly important aspect of policies aiming to prevent environmental degradation and slow down climate change. As the market for recycling expands and waste management becomes more profitable, there is also a higher risk of harm to competition by State aid. […]
read more
No Comments
12. February 2020  |   State Aid Uncovered by Phedon Nicolaides

An Important (and so far, Unique) Project of Common European Interest
State Aid Blogs - StateAidHub blogpost6 microplastics IPCEI
State aid for important R&D projects of common European interest can cover different costs than the RDI Framework and at different rates of intensity. Introduction Several Member States have demanded a more active industrial policy to counteract perceived unfair foreign competition. The Commission’s response has partly been that current rules do allow cross-border cooperation for the development of innovative products. […]
read more
No Comments
4. February 2020  |   State Aid Uncovered by Phedon Nicolaides

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation
State Aid Blogs - StateAidHub blogpost5 SGEI
The “net avoided cost methodology” takes into account only incremental costs. Introduction The two most difficult issues in the design of State aid measures to support services of general economic interest [SGEI] are the proper definition of the public service obligation [PSO] and the identification of the “counterfactual” on the basis of which the public service compensation [PSC] is calculated. […]
read more
No Comments
« Previous PageNext Page »

State Aid Uncovered ×

7. April 2020  |   State Aid Uncovered by Phedon Nicolaides

EU Decisions Override National Decisions on Compensation for Public Service Obligations
State Aid Blogs - StateAidHub blogpost14 Public Service Obligations 1
The principle of res judicata cannot be used to avoid recovery of incompatible State aid.   An update on State aid measures to counter the impact of COVID-19 As of 3 April 2020, the Commission has approved 29 measures submitted by 16 Member States. Article 107(3)(b) is the legal basis for 26 of those measures, while Article 107(2)(b) is the […]
read more
No Comments
31. March 2020  |   State Aid Uncovered by Phedon Nicolaides

How to Make Good the Damage Caused by a Natural Disaster
State Aid Blogs - sergio torres nUw2nIGeGYY unsplash
Compensation for costs incurred as a result of a natural disaster is State aid. The compensation must be for damage directly caused by the natural disaster. Introduction State aid to make good the damage caused by an “exceptional occurrence” such as the corona virus covid-19 is compatible with the internal market. The legal basis for exemption is Article 107(2)(b). Of […]
read more
No Comments
20. March 2020  |   State Aid Uncovered by Phedon Nicolaides

A New Temporary State aid Framework to Fight the Effects of the Corona Virus
corona virus poster
Member States will be allowed to provide grants, guarantees and loans to companies to alleviate the effects of the corona virus. Introduction At the end of 2009, the European Commission adopted a Temporary Framework of State aid rules to enable Member States to support companies that were harmed by the outbreak of the financial crisis in 2008. Now, the corona […]
read more
No Comments
17. March 2020  |   State Aid Uncovered by Phedon Nicolaides

Has an Economic Myth Become a Legal Fact? The Case of Turnover Taxes
State Aid Blogs - Turnover
Progressive turnover taxes are not contrary to the freedom of establishment or the right of equal treatment. Introduction Recent cases involving “turnover” taxes have sparked a debate in the literature and on the conference circuit not only because they raise novel issues but also because of their implications for other taxes which are being mooted by European governments. As Advocate-General […]
read more
No Comments
11. March 2020  |   State Aid Uncovered by Phedon Nicolaides

Financial Transactions between the State and Banks with No State aid
State Aid Blogs - StateAidHub blogpost10 state guarantees
Capital injections, state guarantees and loans granted to banks can be free of State aid if they are priced at market rates which reflect the risk borne by the state. Introduction If banks can obtain capital, loans and guarantees from the state at market rates why don’t they go directly to the market? No one has yet given a satisfactory […]
read more
No Comments
3. March 2020  |   State Aid Uncovered by Phedon Nicolaides

Public Funding of Infrastructure without State Aid
State Aide_Infrastructure
The existence of State aid must be checked at the level of both the direct and indirect beneficiaries who are the owners and users of infrastructure, respectively. If payments to private land owners are to be free of State aid, they must be calculated on the basis of an objective formula that takes into account the size and value of […]
read more
No Comments
25. February 2020  |   State Aid Uncovered by Phedon Nicolaides

Environmental Remediation and State Liability
State Aid Blogs - StateAidHub blogpost8 environmental remediation
Liability assumed by the state for the actions of an undertaking constitutes a selective advantage that may result in potential transfer of state resources in the future. Introduction On 16 January 2020 the General Court delivered its judgment in case T‑257/18, Iberpotash v European Commission.[1] Iberpotash, a Spanish company, appealed against Commission decision 2018/118. Iberpotash owns and operates potash mines […]
read more
No Comments
21. February 2020  |   State Aid Uncovered by Phedon Nicolaides

From Waste to Energy
State Aid Blogs - StateAidHub blogpost7 waste to energy
State aid to incentivise the use of waste to produce energy must be individually notified. Introduction Waste management is an increasingly important aspect of policies aiming to prevent environmental degradation and slow down climate change. As the market for recycling expands and waste management becomes more profitable, there is also a higher risk of harm to competition by State aid. […]
read more
No Comments
12. February 2020  |   State Aid Uncovered by Phedon Nicolaides

An Important (and so far, Unique) Project of Common European Interest
State Aid Blogs - StateAidHub blogpost6 microplastics IPCEI
State aid for important R&D projects of common European interest can cover different costs than the RDI Framework and at different rates of intensity. Introduction Several Member States have demanded a more active industrial policy to counteract perceived unfair foreign competition. The Commission’s response has partly been that current rules do allow cross-border cooperation for the development of innovative products. […]
read more
No Comments
4. February 2020  |   State Aid Uncovered by Phedon Nicolaides

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation
State Aid Blogs - StateAidHub blogpost5 SGEI
The “net avoided cost methodology” takes into account only incremental costs. Introduction The two most difficult issues in the design of State aid measures to support services of general economic interest [SGEI] are the proper definition of the public service obligation [PSO] and the identification of the “counterfactual” on the basis of which the public service compensation [PSC] is calculated. […]
read more
No Comments
« Previous PageNext Page »

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