This week’s article deals with two issues: possible defence against repayment of incompatible State aid and the forthcoming revision of the GBER. Introduction In 2008, the Commission ordered France to recover incompatible aid that had been granted by means of several public measures to support farmers [see Commission decision 2009/402]. What made that decision interesting was that part of the […]
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.
State Aid Uncovered ×
9. July 2019 |
State Aid Uncovered
by Phedon Nicolaides
2. July 2019 |
State Aid Uncovered
by Phedon Nicolaides
A public authority that acts as a private operator may charge what the market can bear. Introduction In January 2019, Germany notified to the Commission, for reasons of legal certainty, investment of the municipality of Hamburg in a district heating network. The Commission, in decision SA.52390, found that the investment in Hamburg District Heating Network conformed with the Market Economy […]
25. June 2019 |
State Aid Uncovered
by Phedon Nicolaides
A private investor assesses all components of a complex transaction and takes into account not just profit, but also the legal implications of the prospective transaction and possible future liability. Introduction When a public authority sells land, it should either auction it through a competitive and unconditional process or have it valued beforehand by an independent expert.Sometimes, public […]
18. June 2019 |
State Aid Uncovered
by Phedon Nicolaides
Progressive tax rates that are consistent with the objective of the tax system are not necessarily selective. Introduction Member States are free to design their corporate tax systems as long as they do not grant State aid or infringe fundamental internal market freedoms. A question that arises in discussions on what Member States may or may not do when designing […]
11. June 2019 |
State Aid Uncovered
by Phedon Nicolaides
A competitor who wants to challenge a Commission decision authorising State aid without a formal investigation must, first, show that it is seriously harmed by the aid. Introduction This week’s article reviews two judgments: one on unlimited state guarantees granted by France [case T-135/17, Scor v European Commission][1] and another on aid that was found not to affect trade between Member […]
4. June 2019 |
State Aid Uncovered
by Phedon Nicolaides
Regulation and licensing do not constitute obligations for the provision of an SGEI. Compensation for changes in public policy is not compensation that complies with the Altmark conditions. Introduction The calculation of the compensation for the net extra costs of public service obligations [PSO] is a difficult task. On 15 May 2019, in case C-706/17, Achema et al v Lithuania […]
28. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
A tax refund may not be granted, if it constitutes non-notified State aid. Introduction It is a well-established principle that restrictions on internal market rights or freedoms may not be attached to a State aid measure. Indeed, current State aid rules [e.g. GBER, guidelines] explicitly exclude from their scope any aid measure which is inseparably linked to a […]
21. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
Non-economic activities have to be accounted separately from economic activities. The exercise of public tasks assigned by the state cannot protect an undertaking from State aid rules. State aid distorts competition even when it aims to remedy distortions. Introduction Ports, like other transport infrastructures, may operate under public obligations some of which may be of economic and some of non-economic […]
16. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
A competitor must show that it is substantially affected by State aid approved by the Commission in order to challenge the Commission’s decision. Merely being affected by the aid is not enough. To show that aid has a substantial impact, it is first necessary to define the relevant market. This is different from the “distortion of competition” in the meaning […]
7. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
Public funding of infrastructure which is not constructed for the specific needs of a company is not State aid. Introduction An article carried by the Financial Times on 1 May 2019 revealed that Jaguar Land Rover [JLR] decided to make again the iconic Land Rover Defender. The production of this legendary off-roader ended about 10 years ago because it […]
State Aid Uncovered ×
9. July 2019 |
State Aid Uncovered
by Phedon Nicolaides
This week’s article deals with two issues: possible defence against repayment of incompatible State aid and the forthcoming revision of the GBER. Introduction In 2008, the Commission ordered France to recover incompatible aid that had been granted by means of several public measures to support farmers [see Commission decision 2009/402]. What made that decision interesting was that part of the […]
2. July 2019 |
State Aid Uncovered
by Phedon Nicolaides
A public authority that acts as a private operator may charge what the market can bear. Introduction In January 2019, Germany notified to the Commission, for reasons of legal certainty, investment of the municipality of Hamburg in a district heating network. The Commission, in decision SA.52390, found that the investment in Hamburg District Heating Network conformed with the Market Economy […]
25. June 2019 |
State Aid Uncovered
by Phedon Nicolaides
A private investor assesses all components of a complex transaction and takes into account not just profit, but also the legal implications of the prospective transaction and possible future liability. Introduction When a public authority sells land, it should either auction it through a competitive and unconditional process or have it valued beforehand by an independent expert.Sometimes, public […]
18. June 2019 |
State Aid Uncovered
by Phedon Nicolaides
Progressive tax rates that are consistent with the objective of the tax system are not necessarily selective. Introduction Member States are free to design their corporate tax systems as long as they do not grant State aid or infringe fundamental internal market freedoms. A question that arises in discussions on what Member States may or may not do when designing […]
11. June 2019 |
State Aid Uncovered
by Phedon Nicolaides
A competitor who wants to challenge a Commission decision authorising State aid without a formal investigation must, first, show that it is seriously harmed by the aid. Introduction This week’s article reviews two judgments: one on unlimited state guarantees granted by France [case T-135/17, Scor v European Commission][1] and another on aid that was found not to affect trade between Member […]
4. June 2019 |
State Aid Uncovered
by Phedon Nicolaides
Regulation and licensing do not constitute obligations for the provision of an SGEI. Compensation for changes in public policy is not compensation that complies with the Altmark conditions. Introduction The calculation of the compensation for the net extra costs of public service obligations [PSO] is a difficult task. On 15 May 2019, in case C-706/17, Achema et al v Lithuania […]
28. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
A tax refund may not be granted, if it constitutes non-notified State aid. Introduction It is a well-established principle that restrictions on internal market rights or freedoms may not be attached to a State aid measure. Indeed, current State aid rules [e.g. GBER, guidelines] explicitly exclude from their scope any aid measure which is inseparably linked to a […]
21. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
Non-economic activities have to be accounted separately from economic activities. The exercise of public tasks assigned by the state cannot protect an undertaking from State aid rules. State aid distorts competition even when it aims to remedy distortions. Introduction Ports, like other transport infrastructures, may operate under public obligations some of which may be of economic and some of non-economic […]
16. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
A competitor must show that it is substantially affected by State aid approved by the Commission in order to challenge the Commission’s decision. Merely being affected by the aid is not enough. To show that aid has a substantial impact, it is first necessary to define the relevant market. This is different from the “distortion of competition” in the meaning […]
7. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
Public funding of infrastructure which is not constructed for the specific needs of a company is not State aid. Introduction An article carried by the Financial Times on 1 May 2019 revealed that Jaguar Land Rover [JLR] decided to make again the iconic Land Rover Defender. The production of this legendary off-roader ended about 10 years ago because it […]
State Aid Uncovered ×
9. July 2019 |
State Aid Uncovered
by Phedon Nicolaides
This week’s article deals with two issues: possible defence against repayment of incompatible State aid and the forthcoming revision of the GBER. Introduction In 2008, the Commission ordered France to recover incompatible aid that had been granted by means of several public measures to support farmers [see Commission decision 2009/402]. What made that decision interesting was that part of the […]
2. July 2019 |
State Aid Uncovered
by Phedon Nicolaides
A public authority that acts as a private operator may charge what the market can bear. Introduction In January 2019, Germany notified to the Commission, for reasons of legal certainty, investment of the municipality of Hamburg in a district heating network. The Commission, in decision SA.52390, found that the investment in Hamburg District Heating Network conformed with the Market Economy […]
25. June 2019 |
State Aid Uncovered
by Phedon Nicolaides
A private investor assesses all components of a complex transaction and takes into account not just profit, but also the legal implications of the prospective transaction and possible future liability. Introduction When a public authority sells land, it should either auction it through a competitive and unconditional process or have it valued beforehand by an independent expert.Sometimes, public […]
18. June 2019 |
State Aid Uncovered
by Phedon Nicolaides
Progressive tax rates that are consistent with the objective of the tax system are not necessarily selective. Introduction Member States are free to design their corporate tax systems as long as they do not grant State aid or infringe fundamental internal market freedoms. A question that arises in discussions on what Member States may or may not do when designing […]
11. June 2019 |
State Aid Uncovered
by Phedon Nicolaides
A competitor who wants to challenge a Commission decision authorising State aid without a formal investigation must, first, show that it is seriously harmed by the aid. Introduction This week’s article reviews two judgments: one on unlimited state guarantees granted by France [case T-135/17, Scor v European Commission][1] and another on aid that was found not to affect trade between Member […]
4. June 2019 |
State Aid Uncovered
by Phedon Nicolaides
Regulation and licensing do not constitute obligations for the provision of an SGEI. Compensation for changes in public policy is not compensation that complies with the Altmark conditions. Introduction The calculation of the compensation for the net extra costs of public service obligations [PSO] is a difficult task. On 15 May 2019, in case C-706/17, Achema et al v Lithuania […]
28. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
A tax refund may not be granted, if it constitutes non-notified State aid. Introduction It is a well-established principle that restrictions on internal market rights or freedoms may not be attached to a State aid measure. Indeed, current State aid rules [e.g. GBER, guidelines] explicitly exclude from their scope any aid measure which is inseparably linked to a […]
21. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
Non-economic activities have to be accounted separately from economic activities. The exercise of public tasks assigned by the state cannot protect an undertaking from State aid rules. State aid distorts competition even when it aims to remedy distortions. Introduction Ports, like other transport infrastructures, may operate under public obligations some of which may be of economic and some of non-economic […]
16. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
A competitor must show that it is substantially affected by State aid approved by the Commission in order to challenge the Commission’s decision. Merely being affected by the aid is not enough. To show that aid has a substantial impact, it is first necessary to define the relevant market. This is different from the “distortion of competition” in the meaning […]
7. May 2019 |
State Aid Uncovered
by Phedon Nicolaides
Public funding of infrastructure which is not constructed for the specific needs of a company is not State aid. Introduction An article carried by the Financial Times on 1 May 2019 revealed that Jaguar Land Rover [JLR] decided to make again the iconic Land Rover Defender. The production of this legendary off-roader ended about 10 years ago because it […]