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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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 […]
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17. April 2020  |   Guest State Aid Blog by Michail Kamperis

COVID-19 Measures Adopted and State Aid Measures (Hopefully) to Be Adopted: An Update from Cyprus
Corona Virus
We are happy to share with you an update on the Covid-19 measures that are or will be adopted in Cyprus. Our guest auhor Michail Kamperis is a lawyer and partner at the law firm of Ierotheou, Kamperis & Co. LLC Nicosia, Cyprus. * Sign up for our free news alert  Sign Up For Free   Cyprus is one of […]
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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 […]
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9. April 2020  |   Guest State Aid Blog by Lexxion Publisher

Follow Up Webinar with Phedon Nicolaides on ‚COVID-19 and State Aid Law‘ on 20 April
Woman sitting by the computer
The European Commission is working on quickly adapting the existing State aid legal framework to address the current Covid-19 pandemic. Join us on 20th April from the comfort and safety of your (home) office to get an insider update on the Covid-19 response by State aid experts from the European Commission and national governments. ✓ Join from wherever you are – […]
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9. April 2020  |   Guest State Aid Blog by Lexxion Publisher

Open Access Content Related to Covid-19: At a Glance
typewriter,
During these tough times, Lexxion Publisher wants to help to spread current news and updates on new regulations or support measures for combating the impact of the corona pandemic. Various contributions will be available as open access during the upcoming weeks. This post lists all contributions and will be updated on a rolling basis. Contributions related to State Aid & […]
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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 […]
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3. April 2020  |   Guest State Aid Blog by P. Kamil Rosiak

Covid-19 Support Package for Entrepreneurs: An Update from Poland
Corona Virus
We are happy to share with you an update on the Covid-19 support package that Poland is creating to support entrepeneurs fighting the impact of the corona pandemic. Our guest auhor P. Kamil Rosiak is Attorney-at-Law & Partner Associate at KPMG D.Dobkowski LP in Warsaw.* On 28 March 2020 the lower house of Polish parliament (Sejm) passed a bill (so […]
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1. April 2020  |   Guest State Aid Blog by Lexxion Publisher

Live Webinar: Covid-19 & State Aid Law in the UK Now
older woman sitting at the table, writting
Lexxion has created another new live webinar to keep you updated on current developments of Covid-19 and State aid law in the UK after Brexit. Leading State aid experts Jonathan Branton, George Peretz QC and Alexander Rose will work through the current EU State aid rules and answer your questions.   ✓ Join from wherever you are – high-quality content at […]
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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 […]
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25. March 2020  |   Guest State Aid Blog by Lexxion Publisher

Join our live webinar with Phedon Nicolaides on ‚COVID-19 and State Aid Law‘ on 2 April
hands typing on the laptop
Due to global developments and responding to various requests, Lexxion has created a live webinar to keep you updated on the latest news regarding the corona virus and State aid law. You can join from wherever you are and receive high-quality content at your (home) office.   In response to the Covid-19 pandemic, EU Member States are urgently rolling out […]
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30. April 2019  |   State Aid Uncovered by Phedon Nicolaides

The Commission Must Explain its Decision
State Aid Blogs - StateAid Blogpost17 2019 Lexxion UPS DeutschePost Eu Commission State Aid
A Commission decision that affects the legal position of an undertaking is actionable before EU courts. The opening of the formal investigation procedure must lead the Member State concerned to suspend the aid measure and may result in a recovery ruling by a national court. The Commission must be consistent in its reasoning. If it cannot use certain information at […]
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23. April 2019  |   State Aid Uncovered by Phedon Nicolaides

State Control: The Case of EEG 2012
State Aid Blogs - 5 most read articles 2019
There is crucial difference between control by the state over resources and attribution to the state of the aid granting decision.   Introduction According to the latest edition of the State aid Scoreboard, in 2017 Member States granted a total of EUR 105 billion of State aid to manufacturing and services. Of that amount, 58% or EUR 61 billion supported […]
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16. April 2019  |   State Aid Uncovered by Phedon Nicolaides

Spanish Football Clubs Score against the Commission: a) Linked Advantages and Disadvantages Must be Assessed Together b) In Determining the Existence of an Advantage, the Commission Must Explain both what it Takes into Account and what it Ignores
State Aid Blogs - StateAidHub blogpost15 Soccer loans Lexxion Spain EU Commission
State measures which are linked and produce both positive and negative effects, must be considered together to determine whether they confer a net advantage to undertakings. Counter-guarantees must be taken into account to determine the existence of advantage even if they are provisional.   Introduction Member States have in a number of cases tried to defend tax reductions or tax […]
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9. April 2019  |   State Aid Uncovered by Phedon Nicolaides

The Boundary between State and Private Resources
State Aid Blogs - StateAidHub blogpost14 StateAid Lexxion Money Eu Commission Bank Financial
Discretion in the form of intervention can remove it from the control of the state.   Introduction Suppose a thug puts a gun to your head and demands your wallet. Because you have sentimental photos in your wallet, you offer instead the keys to your car. You would rather lose the car than the wallet. Can the thug claim in […]
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3. April 2019  |   State Aid Uncovered by Phedon Nicolaides

The Incentive Effect of Public Funding of Infrastructure in Tranches
State Aid Blogs - StateAidHub blogpost13 StateAid motorway greece E65 EU Comission lexxion
Public funding of functionally and commercially severable parts of an infrastructure project may have incentive effect even after construction is completed on some of the parts. A subsidy for the operation of a toll motorway may not constitute State aid.   Introduction State aid granted to a project that has already started lacks incentive effects and, therefore, cannot be found […]
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26. March 2019  |   State Aid Uncovered by Phedon Nicolaides

National Authorities Must Recover Aid they Grant Mistakenly
State Aid Blogs - StateAidHub blogpost12 StateAid food bread eu small
Assurances from granting authorities cannot guarantee the legality of State aid. Aid recipients must verify that the aid is granted correctly.   Introduction The Commission must stop its misguided policy of not making public the answers it provides to Member States on questions of interpretation of the General Block Exemption Regulation [GBER]. This is one of the consequences of a […]
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19. March 2019  |   State Aid Uncovered by Phedon Nicolaides

Many Tax Rulings Do Not Make a Single Aid Scheme
State Aid Blogs - StateaidHub blogpost11 Lexxion 2019 Tax Commission EU judgement
The autonomy that Member States enjoy in the field of direct taxation must be exercised in compliance with EU State aid law. A State aid measure is considered to be a “scheme” when (a) no further implementing acts are necessary, (b) the granting authority has no discretion in how the measure is applied and (c) the measure defines the eligible […]
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13. March 2019  |   State Aid Uncovered by Phedon Nicolaides

How Can Incompatible State Aid Be Passed-on from one Company to another to Avoid Recovery?
State Aid Blogs - StateaidHub blogpost10 2019 commission judgement nvestment state aid lexxion
Introduction State aid that is incompatible with the internal market has to be paid back, unless the repayment would be contrary to a general principle of EU law. Last November the Court of Justice ruled in case C‑622/16 P, Scuola Elementare Maria Montessori v European Commission that “(79) the principle that ‘no one is obliged to do the impossible’ is among the […]
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5. March 2019  |   State Aid Uncovered by Phedon Nicolaides

How Much May a Non-Economic Entity Charge without Becoming an Undertaking?
State Aid Blogs - StateaidHub blogpost9 2019 lexxion education stateaid financing commission 2
The price should not cover more than 50% of the costs. Introduction An entity that does not make profit can still be an undertaking. However, an entity that charges a fee for its services is not necessarily an undertaking. The EU Court of Justice has never defined how low such a fee must be in order for that entity to […]
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27. February 2019  |   State Aid Uncovered by Phedon Nicolaides

EU Rules do not Impose a Time Limit on the Power of National Courts to Deal with Non-notified Aid
State Aid Blogs - StateAidHub blogpost8 Maritim Ferry Port StateAid Lexxion
State aid may affect trade even when the market concerned is not liberalised. This can happen when the aid recipient also has operations outside that market, which it can cross-subsidise. Claims for damages caused by illegal aid must be accorded the same treatment under national law as any other claim resulting from faulty decisions of the state.   Introduction A […]
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