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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- SGEI ×

12. June 2014  |   State Aid Uncovered by Phedon Nicolaides

Price Discounts and Compensation for Public Service Obligations: A Case of Questionable Need for Aid
school busses
SGEI can be defined and public service obligations can be imposed only when the market underprovides. The parameters of compensation must be determined in advance. Public service compensation may not exceed the next extra costs of the SGEI or PSO. Member States are free to devise their own method of compensation, but irrespective of the method used, compensation must comply with the basic […]
read more
No Comments
30. May 2014  |   State Aid Uncovered by Phedon Nicolaides

The Importance of Precise Definition of Public Service Obligations
ship
The imposition of a public service obligation must be preceded by market analysis that shows that the market underprovides. For compensation of public service obligations to be compatible aid, it must satisfy the first three Altmark criteria. Surprisingly, the first three Altmark criteria must also be satisfied [in addition to the 4th criterion] for public service compensation in order not to constitute […]
read more
No Comments
13. May 2014  |   State Aid Uncovered by Phedon Nicolaides

The Perils of Ex Post Compensation of Public Services Obligations
bus
Providers of SGEI must maintain separate accounts. Parameters of compensation must be determined in advance. Ex-post formulation is not in conformity with State aid rules. Ex-post calculation of compensation that covers all costs and eliminates commercial risk is not compatible with State aid rules. Introduction   The calculation of the compensation to be offered to providers of services of general economic interest […]
read more
No Comments
4. April 2014  |   State Aid Uncovered by Phedon Nicolaides

Guidance on the Application of Regulation 1370/2007 on Passenger Transport Services
train entering station
Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how […]
read more
No Comments
28. February 2014  |   State Aid Uncovered by Phedon Nicolaides

The New Guidelines on State Aid to Airports and Airlines (part 1)
man looking airplane takeoff
Introduction[1] One more set of State aid rules for 2014-20 has been adopted. On Thursday, 20 February 2014, the Commission published its Guidelines on State Aid to Airports and Airlines.[2] The other main substantive rules which are already in place are the following, in chronological order:[3] The package on services of general economic interest (SGEI): A Communication, a Decision (like a […]
read more
No Comments
4. February 2014  |   State Aid Uncovered by Phedon Nicolaides

Guidelines on State Aid to Promote Risk Finance Investments
financial graph
Introduction   On 15 January the Commission adopted the fourth set of guidelines for the programming period 2014-2020 [the first three were those on broadband, SGEI, and regional aid]. The latest guidelines replaced those on risk capital for SMEs. What is immediately noticeable from the title of the new guidelines is that they are not confined only to funding in […]
read more
No Comments
28. January 2014  |   State Aid Uncovered by Phedon Nicolaides

Services of General Economic Interest and Horse Racing
horse racing
Introduction Public authorities often argue that the activities they support are important and that they should be considered as services of general economic interest. However, in many cases they are not. In this article I review the Commission Decision 2014/19 concerning a parafiscal levy that was intended to fund supposedly public service obligations assigned to French horse racing companies.[1] This Decision […]
read more
No Comments
8. November 2013  |   State Aid Uncovered by Phedon Nicolaides

Tax Hypothecation and Economic Efficiency under Altmark: T-275/11, French Television 1 v Commission
television
Background France Télévisions is a limited company wholly owned by the French State. As France abolished advertising on public television, it also decided to provide financial compensation to France Télévisions. For this reason it introduced new taxes to generate revenue for the compensation: a tax on advertising and a tax on electronic communications. In January 2009, France notified to the […]
read more
No Comments
11. October 0213  |   State Aid Uncovered by Phedon Nicolaides

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure
gavel on a laptop
Introduction   The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]
read more
No Comments
2. September 2013  |   State Aid Uncovered by Phedon Nicolaides

Altmark and Public Procurement: Definition and Award of Contracts
handshake
Introduction Ever since the Court of Justice ruled on Altmark ten years ago there has been a growing literature on the specific conditions that have to be satisfied so that public assistance to a provider of services of general economic interest [SGEI] does not constitute state aid. In this context, the relationship between the Altmark criteria and the public procurement […]
read more
No Comments
« Previous PageNext Page »

- SGEI ×

12. June 2014  |   State Aid Uncovered by Phedon Nicolaides

Price Discounts and Compensation for Public Service Obligations: A Case of Questionable Need for Aid
school busses
SGEI can be defined and public service obligations can be imposed only when the market underprovides. The parameters of compensation must be determined in advance. Public service compensation may not exceed the next extra costs of the SGEI or PSO. Member States are free to devise their own method of compensation, but irrespective of the method used, compensation must comply with the basic […]
read more
No Comments
30. May 2014  |   State Aid Uncovered by Phedon Nicolaides

The Importance of Precise Definition of Public Service Obligations
ship
The imposition of a public service obligation must be preceded by market analysis that shows that the market underprovides. For compensation of public service obligations to be compatible aid, it must satisfy the first three Altmark criteria. Surprisingly, the first three Altmark criteria must also be satisfied [in addition to the 4th criterion] for public service compensation in order not to constitute […]
read more
No Comments
13. May 2014  |   State Aid Uncovered by Phedon Nicolaides

The Perils of Ex Post Compensation of Public Services Obligations
bus
Providers of SGEI must maintain separate accounts. Parameters of compensation must be determined in advance. Ex-post formulation is not in conformity with State aid rules. Ex-post calculation of compensation that covers all costs and eliminates commercial risk is not compatible with State aid rules. Introduction   The calculation of the compensation to be offered to providers of services of general economic interest […]
read more
No Comments
4. April 2014  |   State Aid Uncovered by Phedon Nicolaides

Guidance on the Application of Regulation 1370/2007 on Passenger Transport Services
train entering station
Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how […]
read more
No Comments
28. February 2014  |   State Aid Uncovered by Phedon Nicolaides

The New Guidelines on State Aid to Airports and Airlines (part 1)
man looking airplane takeoff
Introduction[1] One more set of State aid rules for 2014-20 has been adopted. On Thursday, 20 February 2014, the Commission published its Guidelines on State Aid to Airports and Airlines.[2] The other main substantive rules which are already in place are the following, in chronological order:[3] The package on services of general economic interest (SGEI): A Communication, a Decision (like a […]
read more
No Comments
4. February 2014  |   State Aid Uncovered by Phedon Nicolaides

Guidelines on State Aid to Promote Risk Finance Investments
financial graph
Introduction   On 15 January the Commission adopted the fourth set of guidelines for the programming period 2014-2020 [the first three were those on broadband, SGEI, and regional aid]. The latest guidelines replaced those on risk capital for SMEs. What is immediately noticeable from the title of the new guidelines is that they are not confined only to funding in […]
read more
No Comments
28. January 2014  |   State Aid Uncovered by Phedon Nicolaides

Services of General Economic Interest and Horse Racing
horse racing
Introduction Public authorities often argue that the activities they support are important and that they should be considered as services of general economic interest. However, in many cases they are not. In this article I review the Commission Decision 2014/19 concerning a parafiscal levy that was intended to fund supposedly public service obligations assigned to French horse racing companies.[1] This Decision […]
read more
No Comments
8. November 2013  |   State Aid Uncovered by Phedon Nicolaides

Tax Hypothecation and Economic Efficiency under Altmark: T-275/11, French Television 1 v Commission
television
Background France Télévisions is a limited company wholly owned by the French State. As France abolished advertising on public television, it also decided to provide financial compensation to France Télévisions. For this reason it introduced new taxes to generate revenue for the compensation: a tax on advertising and a tax on electronic communications. In January 2009, France notified to the […]
read more
No Comments
11. October 0213  |   State Aid Uncovered by Phedon Nicolaides

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure
gavel on a laptop
Introduction   The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]
read more
No Comments
2. September 2013  |   State Aid Uncovered by Phedon Nicolaides

Altmark and Public Procurement: Definition and Award of Contracts
handshake
Introduction Ever since the Court of Justice ruled on Altmark ten years ago there has been a growing literature on the specific conditions that have to be satisfied so that public assistance to a provider of services of general economic interest [SGEI] does not constitute state aid. In this context, the relationship between the Altmark criteria and the public procurement […]
read more
No Comments
« Previous PageNext Page »

- SGEI ×

12. June 2014  |   State Aid Uncovered by Phedon Nicolaides

Price Discounts and Compensation for Public Service Obligations: A Case of Questionable Need for Aid
school busses
SGEI can be defined and public service obligations can be imposed only when the market underprovides. The parameters of compensation must be determined in advance. Public service compensation may not exceed the next extra costs of the SGEI or PSO. Member States are free to devise their own method of compensation, but irrespective of the method used, compensation must comply with the basic […]
read more
No Comments
30. May 2014  |   State Aid Uncovered by Phedon Nicolaides

The Importance of Precise Definition of Public Service Obligations
ship
The imposition of a public service obligation must be preceded by market analysis that shows that the market underprovides. For compensation of public service obligations to be compatible aid, it must satisfy the first three Altmark criteria. Surprisingly, the first three Altmark criteria must also be satisfied [in addition to the 4th criterion] for public service compensation in order not to constitute […]
read more
No Comments
13. May 2014  |   State Aid Uncovered by Phedon Nicolaides

The Perils of Ex Post Compensation of Public Services Obligations
bus
Providers of SGEI must maintain separate accounts. Parameters of compensation must be determined in advance. Ex-post formulation is not in conformity with State aid rules. Ex-post calculation of compensation that covers all costs and eliminates commercial risk is not compatible with State aid rules. Introduction   The calculation of the compensation to be offered to providers of services of general economic interest […]
read more
No Comments
4. April 2014  |   State Aid Uncovered by Phedon Nicolaides

Guidance on the Application of Regulation 1370/2007 on Passenger Transport Services
train entering station
Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how […]
read more
No Comments
28. February 2014  |   State Aid Uncovered by Phedon Nicolaides

The New Guidelines on State Aid to Airports and Airlines (part 1)
man looking airplane takeoff
Introduction[1] One more set of State aid rules for 2014-20 has been adopted. On Thursday, 20 February 2014, the Commission published its Guidelines on State Aid to Airports and Airlines.[2] The other main substantive rules which are already in place are the following, in chronological order:[3] The package on services of general economic interest (SGEI): A Communication, a Decision (like a […]
read more
No Comments
4. February 2014  |   State Aid Uncovered by Phedon Nicolaides

Guidelines on State Aid to Promote Risk Finance Investments
financial graph
Introduction   On 15 January the Commission adopted the fourth set of guidelines for the programming period 2014-2020 [the first three were those on broadband, SGEI, and regional aid]. The latest guidelines replaced those on risk capital for SMEs. What is immediately noticeable from the title of the new guidelines is that they are not confined only to funding in […]
read more
No Comments
28. January 2014  |   State Aid Uncovered by Phedon Nicolaides

Services of General Economic Interest and Horse Racing
horse racing
Introduction Public authorities often argue that the activities they support are important and that they should be considered as services of general economic interest. However, in many cases they are not. In this article I review the Commission Decision 2014/19 concerning a parafiscal levy that was intended to fund supposedly public service obligations assigned to French horse racing companies.[1] This Decision […]
read more
No Comments
8. November 2013  |   State Aid Uncovered by Phedon Nicolaides

Tax Hypothecation and Economic Efficiency under Altmark: T-275/11, French Television 1 v Commission
television
Background France Télévisions is a limited company wholly owned by the French State. As France abolished advertising on public television, it also decided to provide financial compensation to France Télévisions. For this reason it introduced new taxes to generate revenue for the compensation: a tax on advertising and a tax on electronic communications. In January 2009, France notified to the […]
read more
No Comments
11. October 0213  |   State Aid Uncovered by Phedon Nicolaides

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure
gavel on a laptop
Introduction   The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of incentive effect, compensation for structural impediment, the designation of an activity as a service of general economic interest (SGEI) and the connection between market failure and SGEI. On the whole, the Court […]
read more
No Comments
2. September 2013  |   State Aid Uncovered by Phedon Nicolaides

Altmark and Public Procurement: Definition and Award of Contracts
handshake
Introduction Ever since the Court of Justice ruled on Altmark ten years ago there has been a growing literature on the specific conditions that have to be satisfied so that public assistance to a provider of services of general economic interest [SGEI] does not constitute state aid. In this context, the relationship between the Altmark criteria and the public procurement […]
read more
No Comments
« Previous PageNext Page »

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