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. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Extra Aid to a Project that Has Already Started
State Aid Blogs - State Aid Uncovered photos 70
Introduction State aid is not supposed to be granted to a project after work has already started because it lacks incentive effect. But when the project incurs unexpected costs, it is socially important so that it cannot be abandoned and without the aid it becomes commercially unviable, then the Commission may authorise additional aid. In March 2022, the Commission approved […]
read more
No Comments
30. September 2025  |   State Aid Uncovered by Phedon Nicolaides

State Aid Measures May Not Infringe Non-State Aid Law
State Aid Blogs - State Aid Uncovered photos 1 1
Introduction It is now well established that the Commission may not authorise a state aid measure that infringes other provisions of EU law. However, those aspects or modalities of the measure that infringe other EU law must be indissolubly or inextricably linked to the object of the aid. On 11 September 2025, in case C-59/23 P, Austria v Commission, the […]
read more
No Comments
23. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Auctions of State Aid for Renewable Hydrogen
State Aid Blogs - State Aid Uncovered photos 68
Introduction Spain notified to the Commission an aid scheme for the promotion of production of renewable hydrogen through electrolysis. The objective of the scheme was to contribute to the reduction of greenhouse gas [GHG] emissions [SA.116676].[1] As explained in the Commission decision authorising the aid, “(5) hydrogen can be used as a feedstock, a fuel or an energy carrier and […]
read more
No Comments
16. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Research and Economic Activities
State Aid Blogs - State Aid Uncovered photos 67
Introduction The Netherlands notified an unusual measure to the Commission. The measure concerned the construction and operation of a research reactor and of an isotope processing facility in Petten in north Netherlands – the so-called PALLAS project. Although there are many nuclear reactors in Europe, very few are used for research purposes and for the production of isotopes for medical […]
read more
No Comments
9. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Injection of State Capital that Is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 66
Introduction Directive 2014/59 on the recovery and resolution of financial institutions and Regulation 806/2014 on establishing the single resolution mechanism stipulate that if state aid is granted to a bank, it is automatically considered to be “failing or likely to fail” and it must be either resolved, if it is a systemic institution, or, otherwise, liquidated. The only exception is […]
read more
No Comments
2. September 2025  |   State Aid Uncovered by Phedon Nicolaides

The Limits of the Competence of National Courts to Review the Implementation of Approved Aid Schemes
State Aid Blogs - State Aid Uncovered photos 65
Introduction National courts have competence to determine the existence of State aid and whether State aid regulations are interpreted correctly by national authorities. In addition, national courts may decide whether approved aid schemes are implemented according to the terms authorised by the Commission. But national courts have no competence to determine the compatibility of State aid itself with the internal […]
read more
No Comments
26. August 2025  |   State Aid Uncovered by Phedon Nicolaides

State-Aid Free Investment: Pari Passu or Benchmarked against Market Return
State Aid Blogs - State Aid Uncovered photos 19
Introduction The Finnish state owned 100% of four different companies which operated risk capital and private equity. One of those four companies was “Tesi”. Finland proposed the consolidation of the other three companies – with an estimated value of EUR 500 million – into Tesi. In addition, Finland intended to inject extra capital of EUR 300 million in Tesi. For […]
read more
No Comments
19. August 2025  |   State Aid Uncovered by Phedon Nicolaides

The Date State Aid Is Granted
State Aid Blogs - State Aid Uncovered photos 64
Introduction The date on which State aid is deemed to have been granted is a critical issue when aid is found to be incompatible with the internal market and has to be recovered. It is also critical when an approved aid scheme expires after the application for aid is submitted but before the aid is granted. On 3 July 2025, […]
read more
No Comments
12. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Linked Enterprises through Relationships between Natural Persons
State Aid Blogs - State Aid Uncovered photos 63
Introduction A perennial issue facing aid-granting authorities is whether the aid applicants are SMEs. A mis-assessment of the SME status can have dire consequences as demonstrated by a Commission decision in May 2025 concerning State aid granted by Germany to sawmill Abalon Hardwood Hessen [AHH] [SA.24030]. The Commission found the aid to be incompatible with the internal market and ordered […]
read more
No Comments
5. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Selectivity and the Reference System
State Aid Blogs - State Aid Uncovered photos 62
Introduction A public measure must be selective and satisfy the other criteria of Article 107(1) TFEU in order to be classified as State aid. The detection of selectivity requires a comparative exercise: a comparison of the aid beneficiary or beneficiaries with non-aid beneficiaries. But which non-aid beneficiaries to take into account. The answer is those who are in a similar […]
read more
No Comments
« Previous PageNext Page »

State Aid Uncovered ×

7. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Extra Aid to a Project that Has Already Started
State Aid Blogs - State Aid Uncovered photos 70
Introduction State aid is not supposed to be granted to a project after work has already started because it lacks incentive effect. But when the project incurs unexpected costs, it is socially important so that it cannot be abandoned and without the aid it becomes commercially unviable, then the Commission may authorise additional aid. In March 2022, the Commission approved […]
read more
No Comments
30. September 2025  |   State Aid Uncovered by Phedon Nicolaides

State Aid Measures May Not Infringe Non-State Aid Law
State Aid Blogs - State Aid Uncovered photos 1 1
Introduction It is now well established that the Commission may not authorise a state aid measure that infringes other provisions of EU law. However, those aspects or modalities of the measure that infringe other EU law must be indissolubly or inextricably linked to the object of the aid. On 11 September 2025, in case C-59/23 P, Austria v Commission, the […]
read more
No Comments
23. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Auctions of State Aid for Renewable Hydrogen
State Aid Blogs - State Aid Uncovered photos 68
Introduction Spain notified to the Commission an aid scheme for the promotion of production of renewable hydrogen through electrolysis. The objective of the scheme was to contribute to the reduction of greenhouse gas [GHG] emissions [SA.116676].[1] As explained in the Commission decision authorising the aid, “(5) hydrogen can be used as a feedstock, a fuel or an energy carrier and […]
read more
No Comments
16. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Research and Economic Activities
State Aid Blogs - State Aid Uncovered photos 67
Introduction The Netherlands notified an unusual measure to the Commission. The measure concerned the construction and operation of a research reactor and of an isotope processing facility in Petten in north Netherlands – the so-called PALLAS project. Although there are many nuclear reactors in Europe, very few are used for research purposes and for the production of isotopes for medical […]
read more
No Comments
9. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Injection of State Capital that Is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 66
Introduction Directive 2014/59 on the recovery and resolution of financial institutions and Regulation 806/2014 on establishing the single resolution mechanism stipulate that if state aid is granted to a bank, it is automatically considered to be “failing or likely to fail” and it must be either resolved, if it is a systemic institution, or, otherwise, liquidated. The only exception is […]
read more
No Comments
2. September 2025  |   State Aid Uncovered by Phedon Nicolaides

The Limits of the Competence of National Courts to Review the Implementation of Approved Aid Schemes
State Aid Blogs - State Aid Uncovered photos 65
Introduction National courts have competence to determine the existence of State aid and whether State aid regulations are interpreted correctly by national authorities. In addition, national courts may decide whether approved aid schemes are implemented according to the terms authorised by the Commission. But national courts have no competence to determine the compatibility of State aid itself with the internal […]
read more
No Comments
26. August 2025  |   State Aid Uncovered by Phedon Nicolaides

State-Aid Free Investment: Pari Passu or Benchmarked against Market Return
State Aid Blogs - State Aid Uncovered photos 19
Introduction The Finnish state owned 100% of four different companies which operated risk capital and private equity. One of those four companies was “Tesi”. Finland proposed the consolidation of the other three companies – with an estimated value of EUR 500 million – into Tesi. In addition, Finland intended to inject extra capital of EUR 300 million in Tesi. For […]
read more
No Comments
19. August 2025  |   State Aid Uncovered by Phedon Nicolaides

The Date State Aid Is Granted
State Aid Blogs - State Aid Uncovered photos 64
Introduction The date on which State aid is deemed to have been granted is a critical issue when aid is found to be incompatible with the internal market and has to be recovered. It is also critical when an approved aid scheme expires after the application for aid is submitted but before the aid is granted. On 3 July 2025, […]
read more
No Comments
12. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Linked Enterprises through Relationships between Natural Persons
State Aid Blogs - State Aid Uncovered photos 63
Introduction A perennial issue facing aid-granting authorities is whether the aid applicants are SMEs. A mis-assessment of the SME status can have dire consequences as demonstrated by a Commission decision in May 2025 concerning State aid granted by Germany to sawmill Abalon Hardwood Hessen [AHH] [SA.24030]. The Commission found the aid to be incompatible with the internal market and ordered […]
read more
No Comments
5. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Selectivity and the Reference System
State Aid Blogs - State Aid Uncovered photos 62
Introduction A public measure must be selective and satisfy the other criteria of Article 107(1) TFEU in order to be classified as State aid. The detection of selectivity requires a comparative exercise: a comparison of the aid beneficiary or beneficiaries with non-aid beneficiaries. But which non-aid beneficiaries to take into account. The answer is those who are in a similar […]
read more
No Comments
« Previous PageNext Page »

State Aid Uncovered ×

7. October 2025  |   State Aid Uncovered by Phedon Nicolaides

Extra Aid to a Project that Has Already Started
State Aid Blogs - State Aid Uncovered photos 70
Introduction State aid is not supposed to be granted to a project after work has already started because it lacks incentive effect. But when the project incurs unexpected costs, it is socially important so that it cannot be abandoned and without the aid it becomes commercially unviable, then the Commission may authorise additional aid. In March 2022, the Commission approved […]
read more
No Comments
30. September 2025  |   State Aid Uncovered by Phedon Nicolaides

State Aid Measures May Not Infringe Non-State Aid Law
State Aid Blogs - State Aid Uncovered photos 1 1
Introduction It is now well established that the Commission may not authorise a state aid measure that infringes other provisions of EU law. However, those aspects or modalities of the measure that infringe other EU law must be indissolubly or inextricably linked to the object of the aid. On 11 September 2025, in case C-59/23 P, Austria v Commission, the […]
read more
No Comments
23. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Auctions of State Aid for Renewable Hydrogen
State Aid Blogs - State Aid Uncovered photos 68
Introduction Spain notified to the Commission an aid scheme for the promotion of production of renewable hydrogen through electrolysis. The objective of the scheme was to contribute to the reduction of greenhouse gas [GHG] emissions [SA.116676].[1] As explained in the Commission decision authorising the aid, “(5) hydrogen can be used as a feedstock, a fuel or an energy carrier and […]
read more
No Comments
16. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Research and Economic Activities
State Aid Blogs - State Aid Uncovered photos 67
Introduction The Netherlands notified an unusual measure to the Commission. The measure concerned the construction and operation of a research reactor and of an isotope processing facility in Petten in north Netherlands – the so-called PALLAS project. Although there are many nuclear reactors in Europe, very few are used for research purposes and for the production of isotopes for medical […]
read more
No Comments
9. September 2025  |   State Aid Uncovered by Phedon Nicolaides

Injection of State Capital that Is Free of State Aid
State Aid Blogs - State Aid Uncovered photos 66
Introduction Directive 2014/59 on the recovery and resolution of financial institutions and Regulation 806/2014 on establishing the single resolution mechanism stipulate that if state aid is granted to a bank, it is automatically considered to be “failing or likely to fail” and it must be either resolved, if it is a systemic institution, or, otherwise, liquidated. The only exception is […]
read more
No Comments
2. September 2025  |   State Aid Uncovered by Phedon Nicolaides

The Limits of the Competence of National Courts to Review the Implementation of Approved Aid Schemes
State Aid Blogs - State Aid Uncovered photos 65
Introduction National courts have competence to determine the existence of State aid and whether State aid regulations are interpreted correctly by national authorities. In addition, national courts may decide whether approved aid schemes are implemented according to the terms authorised by the Commission. But national courts have no competence to determine the compatibility of State aid itself with the internal […]
read more
No Comments
26. August 2025  |   State Aid Uncovered by Phedon Nicolaides

State-Aid Free Investment: Pari Passu or Benchmarked against Market Return
State Aid Blogs - State Aid Uncovered photos 19
Introduction The Finnish state owned 100% of four different companies which operated risk capital and private equity. One of those four companies was “Tesi”. Finland proposed the consolidation of the other three companies – with an estimated value of EUR 500 million – into Tesi. In addition, Finland intended to inject extra capital of EUR 300 million in Tesi. For […]
read more
No Comments
19. August 2025  |   State Aid Uncovered by Phedon Nicolaides

The Date State Aid Is Granted
State Aid Blogs - State Aid Uncovered photos 64
Introduction The date on which State aid is deemed to have been granted is a critical issue when aid is found to be incompatible with the internal market and has to be recovered. It is also critical when an approved aid scheme expires after the application for aid is submitted but before the aid is granted. On 3 July 2025, […]
read more
No Comments
12. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Linked Enterprises through Relationships between Natural Persons
State Aid Blogs - State Aid Uncovered photos 63
Introduction A perennial issue facing aid-granting authorities is whether the aid applicants are SMEs. A mis-assessment of the SME status can have dire consequences as demonstrated by a Commission decision in May 2025 concerning State aid granted by Germany to sawmill Abalon Hardwood Hessen [AHH] [SA.24030]. The Commission found the aid to be incompatible with the internal market and ordered […]
read more
No Comments
5. August 2025  |   State Aid Uncovered by Phedon Nicolaides

Selectivity and the Reference System
State Aid Blogs - State Aid Uncovered photos 62
Introduction A public measure must be selective and satisfy the other criteria of Article 107(1) TFEU in order to be classified as State aid. The detection of selectivity requires a comparative exercise: a comparison of the aid beneficiary or beneficiaries with non-aid beneficiaries. But which non-aid beneficiaries to take into account. The answer is those who are in a similar […]
read more
No Comments
« Previous PageNext Page »

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