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 ×

The Compatibility of State Aid with the Internal Market: Lessons from “Hinkley Point C” – Part II

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 […]

The Compatibility of State Aid with the Internal Market: Lessons from “Hinkley Point C” – Part I

The objective of common interest that should be supported by state aid does not have to be an objective agreed by all Member States.   Introduction On 12 July 2018, the General Court ruled in a complex case brought by Austria and Luxembourg against Commission decision 2015/658 which had authorised State aid for Hinkley Point C, a new nuclear power […]

Selectivity Can Exist at Different Levels: The Case of the Spanish Tax Lease System

A tax measure may be selective in relation to both intermediate and final beneficiaries.  An undertaking may enjoy a selective advantage even if it passes all tax benefits to other parties.   Introduction A measure that is not selective at one level may be selective at another level and a measure that is selective at one level can also be […]

Public Procurement and State Aid

State aid does not have to be awarded on the basis of a competitive procedure, unless the relevant rules require it. Secondary legislation may allow Member States to make direct awards without a prior competitive procedure. Public procurement rules do not apply to awards between contracting authorities.   Introduction   Public procurement and State aid rules have the same basic […]

Public Service Compensation

Compensation for the provision of public services may not exceed the avoidable cost minus any forgone revenue from not having to provide those services. The VAT exemption for postal services is not State aid because it is laid down in the EU VAT directive and therefore cannot be attributed to Member States.   Introduction This article reviews Commission decision on […]

The European Commission’s Code of Best Practices on State Aid Procedures

Closer cooperation between Commission services and Member States.   Introduction   The European Commission, DG Competition, published on 16 July 2018 on its website and then on 19 July 2018 in the Official Journal of the EU a Code of Best Practices for the Conduct of State Aid Control Procedures.[1]The purpose of the Code is to provide guidance to Member […]

State Aid Control in the UK after its Exit from the European Union

After its withdrawal from the EU, the UK is likely to maintain a State aid regime that is similar to that of the EU.   Introduction   In seven months’ time, on 29 March 2019, the UK will leave the EU. But its withdrawal from the EU will not bring to an end compliance with EU rules. The UK is […]

The Compatibility of State Aid Depends on the Rules which are Applicable at the Time the Aid is Granted

Failure to comply with just a single provision of an exemption regulation results in the non-applicability of the whole regulation and makes any implemented aid measure automatically illegal. The compatibility of aid measures adopted in the past but continuing having effects are assessed not on the basis of old rules but on the basis of the rules which are applicable […]

The Definition of the Reference Tax System is still a Puzzle

A selective measure should be determined on the basis of its effects, not on the basis of the legally defined regulatory techniques.   Introduction A tax measure is selective in the meaning of Article 107(1) TFEU when it basically deviates from the normal tax system. In the case of a tax reduction or a tax exemption the normal system is […]

Danish Water Tax Exemption

A selective tax reduction does not constitute State aid if it does not confer an advantage that is proportionately larger than the magnitude of the tax reduction. A complete exemption of insignificant amounts of the taxable volume can be justified on the grounds of reducing administrative burden.     Introduction   Member States enjoy wide discretion to levy taxes on […]

State Aid Uncovered ×

The Compatibility of State Aid with the Internal Market: Lessons from “Hinkley Point C” – Part II

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 […]

The Compatibility of State Aid with the Internal Market: Lessons from “Hinkley Point C” – Part I

The objective of common interest that should be supported by state aid does not have to be an objective agreed by all Member States.   Introduction On 12 July 2018, the General Court ruled in a complex case brought by Austria and Luxembourg against Commission decision 2015/658 which had authorised State aid for Hinkley Point C, a new nuclear power […]

Selectivity Can Exist at Different Levels: The Case of the Spanish Tax Lease System

A tax measure may be selective in relation to both intermediate and final beneficiaries.  An undertaking may enjoy a selective advantage even if it passes all tax benefits to other parties.   Introduction A measure that is not selective at one level may be selective at another level and a measure that is selective at one level can also be […]

Public Procurement and State Aid

State aid does not have to be awarded on the basis of a competitive procedure, unless the relevant rules require it. Secondary legislation may allow Member States to make direct awards without a prior competitive procedure. Public procurement rules do not apply to awards between contracting authorities.   Introduction   Public procurement and State aid rules have the same basic […]

Public Service Compensation

Compensation for the provision of public services may not exceed the avoidable cost minus any forgone revenue from not having to provide those services. The VAT exemption for postal services is not State aid because it is laid down in the EU VAT directive and therefore cannot be attributed to Member States.   Introduction This article reviews Commission decision on […]

The European Commission’s Code of Best Practices on State Aid Procedures

Closer cooperation between Commission services and Member States.   Introduction   The European Commission, DG Competition, published on 16 July 2018 on its website and then on 19 July 2018 in the Official Journal of the EU a Code of Best Practices for the Conduct of State Aid Control Procedures.[1]The purpose of the Code is to provide guidance to Member […]

State Aid Control in the UK after its Exit from the European Union

After its withdrawal from the EU, the UK is likely to maintain a State aid regime that is similar to that of the EU.   Introduction   In seven months’ time, on 29 March 2019, the UK will leave the EU. But its withdrawal from the EU will not bring to an end compliance with EU rules. The UK is […]

The Compatibility of State Aid Depends on the Rules which are Applicable at the Time the Aid is Granted

Failure to comply with just a single provision of an exemption regulation results in the non-applicability of the whole regulation and makes any implemented aid measure automatically illegal. The compatibility of aid measures adopted in the past but continuing having effects are assessed not on the basis of old rules but on the basis of the rules which are applicable […]

The Definition of the Reference Tax System is still a Puzzle

A selective measure should be determined on the basis of its effects, not on the basis of the legally defined regulatory techniques.   Introduction A tax measure is selective in the meaning of Article 107(1) TFEU when it basically deviates from the normal tax system. In the case of a tax reduction or a tax exemption the normal system is […]

Danish Water Tax Exemption

A selective tax reduction does not constitute State aid if it does not confer an advantage that is proportionately larger than the magnitude of the tax reduction. A complete exemption of insignificant amounts of the taxable volume can be justified on the grounds of reducing administrative burden.     Introduction   Member States enjoy wide discretion to levy taxes on […]

State Aid Uncovered ×

The Compatibility of State Aid with the Internal Market: Lessons from “Hinkley Point C” – Part II

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 […]

The Compatibility of State Aid with the Internal Market: Lessons from “Hinkley Point C” – Part I

The objective of common interest that should be supported by state aid does not have to be an objective agreed by all Member States.   Introduction On 12 July 2018, the General Court ruled in a complex case brought by Austria and Luxembourg against Commission decision 2015/658 which had authorised State aid for Hinkley Point C, a new nuclear power […]

Selectivity Can Exist at Different Levels: The Case of the Spanish Tax Lease System

A tax measure may be selective in relation to both intermediate and final beneficiaries.  An undertaking may enjoy a selective advantage even if it passes all tax benefits to other parties.   Introduction A measure that is not selective at one level may be selective at another level and a measure that is selective at one level can also be […]

Public Procurement and State Aid

State aid does not have to be awarded on the basis of a competitive procedure, unless the relevant rules require it. Secondary legislation may allow Member States to make direct awards without a prior competitive procedure. Public procurement rules do not apply to awards between contracting authorities.   Introduction   Public procurement and State aid rules have the same basic […]

Public Service Compensation

Compensation for the provision of public services may not exceed the avoidable cost minus any forgone revenue from not having to provide those services. The VAT exemption for postal services is not State aid because it is laid down in the EU VAT directive and therefore cannot be attributed to Member States.   Introduction This article reviews Commission decision on […]

The European Commission’s Code of Best Practices on State Aid Procedures

Closer cooperation between Commission services and Member States.   Introduction   The European Commission, DG Competition, published on 16 July 2018 on its website and then on 19 July 2018 in the Official Journal of the EU a Code of Best Practices for the Conduct of State Aid Control Procedures.[1]The purpose of the Code is to provide guidance to Member […]

State Aid Control in the UK after its Exit from the European Union

After its withdrawal from the EU, the UK is likely to maintain a State aid regime that is similar to that of the EU.   Introduction   In seven months’ time, on 29 March 2019, the UK will leave the EU. But its withdrawal from the EU will not bring to an end compliance with EU rules. The UK is […]

The Compatibility of State Aid Depends on the Rules which are Applicable at the Time the Aid is Granted

Failure to comply with just a single provision of an exemption regulation results in the non-applicability of the whole regulation and makes any implemented aid measure automatically illegal. The compatibility of aid measures adopted in the past but continuing having effects are assessed not on the basis of old rules but on the basis of the rules which are applicable […]

The Definition of the Reference Tax System is still a Puzzle

A selective measure should be determined on the basis of its effects, not on the basis of the legally defined regulatory techniques.   Introduction A tax measure is selective in the meaning of Article 107(1) TFEU when it basically deviates from the normal tax system. In the case of a tax reduction or a tax exemption the normal system is […]

Danish Water Tax Exemption

A selective tax reduction does not constitute State aid if it does not confer an advantage that is proportionately larger than the magnitude of the tax reduction. A complete exemption of insignificant amounts of the taxable volume can be justified on the grounds of reducing administrative burden.     Introduction   Member States enjoy wide discretion to levy taxes on […]

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