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!

16. October 2019  |   State Aid Uncovered by Phedon Nicolaides

Attempting to Minimise Past State aid Is of No Interest to a Private Investor
State Aid Blogs - StateAidHub blogpost43 privateinvestor
A public authority acting as a private investor ignores past State aid. Introduction It is now a settled principle that when a public authority intends or pretends to act as a private investor it must not take into account any past aid it has granted to the company in which it wants to invest. On 19 September 2019, the General Court […]
read more
No Comments
8. October 2019  |   State Aid Uncovered by Phedon Nicolaides

Public Service Obligations, Duration of Entrustment and Reasonable Profit
State Aid Blogs - StateAidHub blogpost41 LNGterminal
The duration of entrustment should not exceed the economic life of the investment and the rate of return should reflect the commercial risk of that investment. Introduction Is a 55-year entrustment through a direct award compatible with EU rules? And is a profit rate that exceeds the risk-free rate of return reasonable? These are some of the questions that the […]
read more
No Comments
1. October 2019  |   State Aid Uncovered by Phedon Nicolaides

Enforcement of State Aid Rules by National Courts
State Aid Blogs - m 2
Private enforcement has increased, but damages for illegal granting of State aid have been successfully claimed in just one case. Introduction   According to the annual competition report that was published in July, Member States use the GBER to implement 96% of their new aid measures.[1] This impressive outcome should be seen in conjunction with the recent rulings of the Court […]
read more
3 Comments
24. September 2019  |   State Aid Uncovered by Phedon Nicolaides

“Invest-NL”: A New Promotional Bank
State Aid Blogs - StateAidHub blogpost39 promotionalbank
A state-owned promotional or development bank can pursue public policy objectives and also invest on terms which are acceptable to private investors. Introduction During the past decade or so several Member States have established “promotional” or “development” banks for the purpose of investing where the market does not. Private investors may be reluctant to commit their money for a variety […]
read more
No Comments
17. September 2019  |   State Aid Uncovered by Phedon Nicolaides

Sale of a Bank without State aid
State Aid Blogs - StateAidHub blogpost38 saleofbank
The sale must be open, transparent, non-discriminatory, unconditional and the winning bid must be the offer with the highest price. Introduction The German HSH Nordbank used to be the largest provider of ship finance in the world. It had commercial presence in over 20 major financial centres. Before the outbreak of the financial crisis in 2008, HSH Nordbank had a […]
read more
No Comments
10. September 2019  |   State Aid Uncovered by Phedon Nicolaides

Individually Notified Regional Aid
State Aid Blogs -
All individual awards of aid granted to the same project over a three-year period have to be counted together and remain below the maximum allowable aid intensity in relation to the sum of eligible costs. Introduction Hungary operates an aid scheme that offers tax credits to encourage regional investment. The scheme has been implemented on the basis of the GBER […]
read more
No Comments
3. September 2019  |   State Aid Uncovered by Phedon Nicolaides

Presumed v Actual Compatibility of State aid with the Internal Market
State Aid Blogs - StateAidHub blogpost36 GBER BMW
State aid granted on the basis of the GBER may not be considered as authorised by the Commission. The task of Member States is to ensure that all of the requirements of the GBER are fulfilled. In particular, Member States must confirm the incentive effect of aid to large enterprises. Introduction[1]   In March 2019, the Court of Justice delivered […]
read more
No Comments
28. August 2019  |   State Aid Uncovered by Phedon Nicolaides

A Curious Case of Port Concessions
State Aid Blogs - StateAidHub blogpost35 port concessions
The obligations of a concessionaire may be made less onerous in order to enable it to remain in operation. Any adjustment of the obligations takes into account the possible legal defences of the concessionaire. Introduction The Market Economy Investor Principle [MEIP] is a powerful concept. Its many variations attest to its versatility [e.g. market economy investor, operator, vendor, creditor]. It […]
read more
No Comments
20. August 2019  |   State Aid Uncovered by Phedon Nicolaides

Repayable Advances for Support of Research Projects
State Aid Blogs - StateAidHub blogpost34 RDI GBER
The amount of State aid in a repayable advance to support research projects is the difference between the return a private investor would demand and the actual return for the funding authority. Introduction According to the staff working paper accompanying the 2018 annual competition report that was published on 15 July 2019, 95% of all State aid measures supporting R&D […]
read more
No Comments
13. August 2019  |   State Aid Uncovered by Phedon Nicolaides

Aid to Providers of Local Services through Exclusive Contracts Can still Affect Cross-border Trade
State Aid Blogs - StateAidHub blogpost33 trade
An exclusive contract can affect cross-border trade if the awarding authority has the option to use a competitive selection procedure. Aid to the operator of a legal monopoly may affect trade if the operator can cross-subsidise activities outside the area of the monopoly. Introduction A perennial question is whether aid to providers of local services can affect cross-border trade. Given […]
read more
No Comments
« Previous PageNext Page »

12. February 2019  |   State Aid Uncovered by Phedon Nicolaides

Pari Passu Is not Static
State Aid Blogs - StateAidHub blogpost4 2019 lexxion pari passu chemistry Investment
When comparing the behaviour of public and private creditors, it is necessary to ensure that their situations and interests do not diverge over time.   Introduction   When an undertaking owes money to a public authority the latter must use all available legal means to recover the money, including the liquidation of the undertaking and the sale of its assets. […]
read more
No Comments
29. January 2019  |   State Aid Uncovered by Phedon Nicolaides

Services of General Economic Interest: Proper Definition and Avoidance of Overcompensation
State Aid Blogs - StateAidHub Blogpost4 2019 Lexxion Stateaid SGEI Social Housing
Member States need to demonstrate that public service obligations imposed on undertakings are necessary and proportional to the need for public service. A change in the funding of public services does not constitute new aid if it does not alter its objectives, the beneficiaries or the amount of aid by more than 20%.   Introduction It is a well-established principle […]
read more
No Comments
22. January 2019  |   State Aid Uncovered by Phedon Nicolaides

The Private Investor Principle in Air Transport – Part II
State Aid Blogs - StateAidHub Blogpost3 2019 lexxion Commission Airport Investment StateAid
Public funds managed by private airport operators can be classified as state resources. Prices charged by airport operators can be used as a benchmark for market prices only if their activities and size are comparable and their costs are not subsidised by State aid. Before a private investor enters into any commercial arrangement, it takes into account all relevant information, […]
read more
No Comments
16. January 2019  |   State Aid Uncovered by Phedon Nicolaides

The Private Investor Principle in Air Transport – Part I
State Aid Blogs - StateAidHub blogpost2 2019 lexxion stateaid airports
Public funds managed by private airport operators can be classified as state resources. Prices charged by airport operators can be used as a benchmark for market prices only if their activities and size are comparable and their costs are not subsidised by State aid. Before a private investor enters into any commercial arrangement, it takes into account all relevant information, […]
read more
No Comments
8. January 2019  |   State Aid Uncovered by Phedon Nicolaides

Justification of a Tax Exemption
State Aid Blogs - StateAidHub blogpost23
Prevention of excessive taxation may justify tax exemption. Prevention of abuse may justify limits to the tax exemption.   Introduction   A tax exemption may not constitute state aid if it is justified by reasons which are linked to the nature or general scheme of the tax system. This is what the Court of Justice said on 19 December 2018, […]
read more
No Comments
21. December 2018  |   State Aid Uncovered by Phedon Nicolaides

Infrastructure Projects, State Guarantees and Distortion of Competition
State Aid Blogs - SAH blogpost51 52 stateaid infrastructure guarantees
State guarantees must be limited in duration and amount and the conditions for their mobilization must be defined in advance. Public funding to an operator in a closed sector does not affect trade and, therefore, does not constitute State aid.   Introduction Large infrastructure projects are complex, encounter many unforeseen problems and often fall behind schedule for years. Consider, for […]
read more
No Comments
18. December 2018  |   State Aid Uncovered by Phedon Nicolaides

The Date and Scope of Public Service Compensation
State Aid Blogs - SAH blog50 beneficiaries stateaid public transportation
Aid is deemed to be granted on the date the beneficiary undertaking acquires the legal right to it, regardless of whether it is actually paid on that date. It is not enough for a public authority to define the service that it wants an operator to provide and the price that it should charge. It must also define where and […]
read more
No Comments
12. December 2018  |   State Aid Uncovered by Phedon Nicolaides

The Challenge of Identifying the Reference Tax System: The Spanish Goodwill Case, Again
State Aid Blogs - SAH blog49 Lexxion tax
To determine whether an aid measure is selective, the treatment of the beneficiaries has to be compared to those undertakings which are in a comparable position.   Introduction   On 15 November 2018, the General Court ruled in case T-239/11, Sigma Alimentos Exterior v European Commission.1 Sigma Alimentos Exterior (SAE), a Spanish company, appealed against Commission decision 2011/282 which found that […]
read more
No Comments
4. December 2018  |   State Aid Uncovered by Phedon Nicolaides

The Recovery of Incompatible Aid Cannot be Absolutely Impossible Unless it is first Attempted
State Aid Blogs - SAH blog48 Montessori Lexxion
Introduction In its ruling of 6 November 2018 in cases C‑622/16 P to C‑624/16 P, Scuola Elementare Maria Montessori v European Commission, the Court of Justice made it harder for Member States to escape from their recovery obligations.[1] Montessori appealed against the judgment of the General Court in case T‑220/13, Scuola Elementare Maria Montessori v European Commission. That judgment was reviewed here on […]
read more
No Comments
27. November 2018  |   State Aid Uncovered by Phedon Nicolaides

Legal Standing of Investors in Failed Banks
State Aid Blogs - m 3
Investors that lodge claims before national courts for damages from resolution of banks have legal standing to request annulment of Commission decisions authorising State aid to those banks. Introduction It is now ten years since the start of the financial crisis. In these ten years, the Commission has adopted about 500 decisions dealing with State aid to banks and other […]
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