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 […]
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 ×
27. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
20. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
The agreement on the withdrawal of the UK from the EU requires compliance with EU State aid rules. Introduction On 14 November 2018, EU and UK negotiators finalised the text of the Agreement on the withdrawal of the UK from the EU.[1] The Agreement has to be ratified by the UK and the other 27 Member States. Given immediate […]
9. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
Compensation for the extra costs of a public service obligation may include a reasonable profit that reflects the risk borne by the provider of the public service. Introduction The calculation of the amount of compensation for the extra costs of public service obligations can be difficult and tricky. In the absence of such calculation, aid to providers of […]
6. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
Operating aid is not normally compatible with the internal market. Therefore, State aid provided through state guarantees should not cover operating costs. State aid embedded in guarantees must be quantifiable so that its necessity and proportionality can be assessed. The assessment of State aid must be made within an EU context taking into account its impact on trade. Introduction […]
30. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Taxes which are inseparably linked with an aid measure are assessed together with the aid itself. An increase of the budget of an aid scheme by more than 20% constitutes a change of existing aid that must be notified to the Commission for prior authorisation. Introduction Taxpayers may not refuse to pay taxes on the grounds that the tax […]
23. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Neither the existence of market failure, nor national laws that designate a service to be in the general interest can replace an official act that assigns to one or more undertakings clearly defined public service obligations. Introduction The proper definition of public service obligations (PSOs) is an issue that arises with surprising regularity. It is surprising because numerous court […]
16. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Unlimited state guarantees create a presumption that the recipient of the guarantee obtains an advantage in the form of cheaper credit. Any advantage in the form of lower risk in transactions with suppliers or clients has to be proven. Introduction State guarantees must be limited in time and amount and may cover only a specified event. Unlimited and general […]
9. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
A private investor assesses the prospects of future profitability before it invests. The burden of proof lies with the Member State that claims it has acted as a private investor. Introduction The market economy investor principle is based on a simple premise: before you commit your money you need to check how much you are likely to get back. […]
2. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
The objective of common interest that should be supported by State aid does not have to be an objective agreed by all Member States. Environmental protection Austria argued that the Commission had ignored the potential negative effects of the aid on the environment such as the storing of nuclear waste. The reply of the Court was that “(516) in […]
25. September 2018 |
State Aid Uncovered
by Phedon Nicolaides
The objective of common interest that should be supported by state aid does not have to be an objective agreed by all Member States. Existence of market failure and need for aid Austria and Luxembourg claimed that the intervention by the UK was not necessary and that there was no evidence that the liberalised market for the generation and […]
State Aid Uncovered ×
27. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
20. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
The agreement on the withdrawal of the UK from the EU requires compliance with EU State aid rules. Introduction On 14 November 2018, EU and UK negotiators finalised the text of the Agreement on the withdrawal of the UK from the EU.[1] The Agreement has to be ratified by the UK and the other 27 Member States. Given immediate […]
9. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
Compensation for the extra costs of a public service obligation may include a reasonable profit that reflects the risk borne by the provider of the public service. Introduction The calculation of the amount of compensation for the extra costs of public service obligations can be difficult and tricky. In the absence of such calculation, aid to providers of […]
6. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
Operating aid is not normally compatible with the internal market. Therefore, State aid provided through state guarantees should not cover operating costs. State aid embedded in guarantees must be quantifiable so that its necessity and proportionality can be assessed. The assessment of State aid must be made within an EU context taking into account its impact on trade. Introduction […]
30. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Taxes which are inseparably linked with an aid measure are assessed together with the aid itself. An increase of the budget of an aid scheme by more than 20% constitutes a change of existing aid that must be notified to the Commission for prior authorisation. Introduction Taxpayers may not refuse to pay taxes on the grounds that the tax […]
23. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Neither the existence of market failure, nor national laws that designate a service to be in the general interest can replace an official act that assigns to one or more undertakings clearly defined public service obligations. Introduction The proper definition of public service obligations (PSOs) is an issue that arises with surprising regularity. It is surprising because numerous court […]
16. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Unlimited state guarantees create a presumption that the recipient of the guarantee obtains an advantage in the form of cheaper credit. Any advantage in the form of lower risk in transactions with suppliers or clients has to be proven. Introduction State guarantees must be limited in time and amount and may cover only a specified event. Unlimited and general […]
9. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
A private investor assesses the prospects of future profitability before it invests. The burden of proof lies with the Member State that claims it has acted as a private investor. Introduction The market economy investor principle is based on a simple premise: before you commit your money you need to check how much you are likely to get back. […]
2. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
The objective of common interest that should be supported by State aid does not have to be an objective agreed by all Member States. Environmental protection Austria argued that the Commission had ignored the potential negative effects of the aid on the environment such as the storing of nuclear waste. The reply of the Court was that “(516) in […]
25. September 2018 |
State Aid Uncovered
by Phedon Nicolaides
The objective of common interest that should be supported by state aid does not have to be an objective agreed by all Member States. Existence of market failure and need for aid Austria and Luxembourg claimed that the intervention by the UK was not necessary and that there was no evidence that the liberalised market for the generation and […]
State Aid Uncovered ×
27. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
20. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
The agreement on the withdrawal of the UK from the EU requires compliance with EU State aid rules. Introduction On 14 November 2018, EU and UK negotiators finalised the text of the Agreement on the withdrawal of the UK from the EU.[1] The Agreement has to be ratified by the UK and the other 27 Member States. Given immediate […]
9. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
Compensation for the extra costs of a public service obligation may include a reasonable profit that reflects the risk borne by the provider of the public service. Introduction The calculation of the amount of compensation for the extra costs of public service obligations can be difficult and tricky. In the absence of such calculation, aid to providers of […]
6. November 2018 |
State Aid Uncovered
by Phedon Nicolaides
Operating aid is not normally compatible with the internal market. Therefore, State aid provided through state guarantees should not cover operating costs. State aid embedded in guarantees must be quantifiable so that its necessity and proportionality can be assessed. The assessment of State aid must be made within an EU context taking into account its impact on trade. Introduction […]
30. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Taxes which are inseparably linked with an aid measure are assessed together with the aid itself. An increase of the budget of an aid scheme by more than 20% constitutes a change of existing aid that must be notified to the Commission for prior authorisation. Introduction Taxpayers may not refuse to pay taxes on the grounds that the tax […]
23. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Neither the existence of market failure, nor national laws that designate a service to be in the general interest can replace an official act that assigns to one or more undertakings clearly defined public service obligations. Introduction The proper definition of public service obligations (PSOs) is an issue that arises with surprising regularity. It is surprising because numerous court […]
16. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
Unlimited state guarantees create a presumption that the recipient of the guarantee obtains an advantage in the form of cheaper credit. Any advantage in the form of lower risk in transactions with suppliers or clients has to be proven. Introduction State guarantees must be limited in time and amount and may cover only a specified event. Unlimited and general […]
9. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
A private investor assesses the prospects of future profitability before it invests. The burden of proof lies with the Member State that claims it has acted as a private investor. Introduction The market economy investor principle is based on a simple premise: before you commit your money you need to check how much you are likely to get back. […]
2. October 2018 |
State Aid Uncovered
by Phedon Nicolaides
The objective of common interest that should be supported by State aid does not have to be an objective agreed by all Member States. Environmental protection Austria argued that the Commission had ignored the potential negative effects of the aid on the environment such as the storing of nuclear waste. The reply of the Court was that “(516) in […]
25. September 2018 |
State Aid Uncovered
by Phedon Nicolaides
The objective of common interest that should be supported by state aid does not have to be an objective agreed by all Member States. Existence of market failure and need for aid Austria and Luxembourg claimed that the intervention by the UK was not necessary and that there was no evidence that the liberalised market for the generation and […]