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!

20. February 2018  |   State Aid Uncovered by Phedon Nicolaides

What Happens when Things Go Wrong
State Aid Blogs - 20.02.18 StateAid
Only EU institutions can provide assurances that aid is granted legally. The amount of State aid in a state guarantee given to a company in difficulty can be equal to the amount of the guaranteed loan. The simultaneity of public and private investments is not enough to ensure that the public investment is at market terms. They must also be […]
read more
No Comments
13. February 2018  |   State Aid Uncovered by Phedon Nicolaides

Investment in Airport Infrastructure
State Aid Blogs - ashim d silva pGcqw1ARGyg unsplash
Public funding of infrastructure used for non-economic purposes does not constitute State aid. Public investment in infrastructure used for economic purposes does not constitute State aid if the investment can generate a return that is acceptable to a private investor.   Introduction   On 25 January 2018, the General Court ruled in case T-818/14, Brussels South Charleroi Airport v Commission.[1] Brussels […]
read more
1 Comment
6. February 2018  |   State Aid Uncovered by Phedon Nicolaides

How a Private Investor Behaves: EDF v Commission
State Aid Blogs - 17.10. imputability stateaid
A private investor carries out an assessment of the prospective profitability of a company before it invests in it. Ex post assessment is not sufficient. Evidence that the investment is likely to be profitable is not enough. The return must be high enough to satisfy a private investor in a similar situation (by compensating it for the risk it assumes). […]
read more
No Comments
30. January 2018  |   State Aid Uncovered by Phedon Nicolaides

The Puzzle of the State Acting as a Regulator
State Aid Blogs - joao silas UGQoo2nznz8 unsplash
When the state exercises its regulatory tasks, it does not have to demand fees and therefore it does not forgo potential state resources.   Introduction A few weeks ago the Commission considered whether the regulatory actions of the state fell within the scope of Article 107(1) TFEU. In decision SA.42028 concerning aid to Yliopiston Apteekki Oy in Finland, the Commission […]
read more
1 Comment
23. January 2018  |   State Aid Uncovered by Phedon Nicolaides

Danish Horse Racing
State Aid Blogs - horse betting Denmark State Aid
Taxes hypothecated to State aid measures fall within the scope of the assessment of the compatibility of those measures.   Introduction Operating aid is not normally allowed. Yet, in decision SA.48604 concerning horse-racing betting in Denmark the Commission appears to have authorised operating aid.[1] This measure was approved within six months. In the post-SAM, it must be one of the […]
read more
No Comments
16. January 2018  |   State Aid Uncovered by Phedon Nicolaides

Selectivity Requires Comparison
State Aid Blogs - ah life rd2jRzEum9g unsplash
To determine whether a measure is selective it is necessary to compare the beneficiary companies to other companies which are in a similar situation and determine whether the latter receive the same advantage. Introduction[1]   On 20 December 2017, the Court of Justice delivered three judgments in appeals against rulings of the General Court concerning the expansion of digital terrestrial television […]
read more
2 Comments
9. January 2018  |   State Aid Uncovered by Phedon Nicolaides

Structural Disadvantages and Regional Aid
State Aid Blogs - StateAidHub blogpost35 port concessions
Aid that seeks to neutralise a structural disadvantage still confers an advantage. Aid that seeks to remedy market failure is selective. State aid that is compatible with the internal market must be necessary to achieve an objective of the Treaty and be capable of incentivising a change in the behaviour of the recipient undertakings.   Introduction On 13 December 2017, […]
read more
No Comments
2. January 2018  |   State Aid Uncovered by Phedon Nicolaides

PART II: Concessions and State Aid: Does the State Act as a Regulator or Market Operator?
State Aid Blogs - marcin jozwiak 44YvpqQ595w unsplash
When Member States act as regulators they need not maximise revenue from the granting of concessions rights. When Member States act as regulators they must grant concession rights on the basis of procedures which are competitive, transparent, non-discriminatory and unconditional.   Part II: Public procurement principles[1] Principles for selection of concession holders The Commission examined also, in addition to the […]
read more
No Comments
1. January 2018  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – January 2018
gavel
Find below the court’s diary for all State aid cases this month. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog.   Tuesday 16/01/2018 Judgment in case T-747/15 – EDF v Commission (General Court – Third Chamber) Wednesday 17/01/2018 Judgment […]
read more
No Comments
27. December 2017  |   State Aid Uncovered by Phedon Nicolaides

PART I: Concessions and State Aid: Does the State Act as a Regulator or Market Operator?
State Aid Blogs - m 36
When Member States act as regulators they need not maximise revenue from the granting of concessions rights. When Member States act as regulators they must grant concession rights on the basis of procedures which are competitive, transparent, non-discriminatory and unconditional. Introduction   Is it possible for a public authority to grant State aid through a defective procurement procedure? The answer […]
read more
2 Comments
« Previous PageNext Page »

25. July 2017  |   State Aid Uncovered by Phedon Nicolaides

Transfer of Trademarks
State Aid Blogs - m 9
The free transfer of a trademark that belongs to the state confers two possible advantages to the new owner if there is a market for that trademark.   Introduction When a public authority places at the disposal of an undertaking a public asset, it confers to that undertaking a competitive advantage. The competitive advantage is eliminated whenever that public authority […]
read more
No Comments
18. July 2017  |   State Aid Uncovered by Phedon Nicolaides

Even the Catholic Church Is not Absolved from State Aid Rules: The Essence of Economic Activity – PART II
State Aid Blogs - m 10
Purely religious activities and education funded by the state are not economic in nature.   Read the I. part of the article, here. Selective economic advantage The Court proceeded to examine the possible existence of a selective economic advantage. It first recalled, in paragraph 65, that the concept of State aid covers only those public measures which favour certain undertakings “or” […]
read more
No Comments
11. July 2017  |   State Aid Uncovered by Phedon Nicolaides

Even the Catholic Church Is not Absolved from State Aid Rules: The Essence of Economic Activity – PART I
State Aid Blogs - m 10
Purely religious activities and education funded by the state are not economic in nature. Introduction On 27 June 2017 the Court of Justice ruled in case C‑74/16, Congregación de Escuelas Pías Provincia Betania v Ayuntamiento de Getafe.[1] The ruling was in response to a request from a Spanish administrative court dealing with a tax dispute between religious schools and the municipality of […]
read more
10 Comments
4. July 2017  |   State Aid Uncovered by Phedon Nicolaides

Imputability to the State
State Aid Blogs - m 11
State resources and imputability or attribution to the state are two distinct concepts. They must both be satisfied in order for a measure to constitute State aid. Introduction Several Member States have set up “promotional” banks or national development banks. Some of these promotional banks pursue only public policy objectives by channelling cheap funds to SMEs. Some others provide funding […]
read more
2 Comments
27. June 2017  |   State Aid Uncovered by Phedon Nicolaides

Is there any Advantage for Owners, Operators or Users of Publicly Funded Ports?
State Aid Blogs - m 12
Public funding of ports confers an advantage to their owners, but not for operators chosen competitively or users who pay a market price.   Introduction Few issues have exercised public authorities more than the funding of infrastructure which is used for commercial purposes. This is because State aid may benefit the owner and/or the operator and/or the users of the […]
read more
No Comments
20. June 2017  |   State Aid Uncovered by Phedon Nicolaides

The Effectiveness of Clear Guidance: The Case of Broadband Networks
State Aid Blogs - m 13
This blog examines how much aid goes to support broadband networks and what lessons can be drawn from the Commission’s decisional practice.   Introduction A principal objective of the State Aid Modernisation was to free Commission resources from the time-consuming task of checking the conformity of routine measures of State aid. Consequently, the General Block Exemption Regulation was extended to […]
read more
No Comments
13. June 2017  |   State Aid Uncovered by Phedon Nicolaides

A Regional Aid Scheme with an Ex-Post Evaluation Plan
State Aid Blogs - m 15
Aid must be capable of remedying the regional handicap.   Introduction A novel aspect of the 2014 State Aid Modernisation was the requirement for ex-post evaluation of large or unusual State aid measures. The purpose of the ex-post evaluation is to determine the effectiveness of State aid. The outcome of the evaluation does not affect the legality of the aid. […]
read more
No Comments
6. June 2017  |   State Aid Uncovered by Phedon Nicolaides

Transfer of State Assets between State-Owned Companies
State Aid Blogs - m 16
Transfers of public assets for the purpose of extinguishing debt have to be valued according to private creditor principle. Transfers of public assets that involve State aid must be notified to the Commission.   Introduction Sale or transfer of state assets is a tricky process. A possible undervaluation of the assets results in State aid for the benefit of the […]
read more
No Comments
29. May 2017  |   State Aid Uncovered by Phedon Nicolaides

The Art, Science and Law of Funding Services of General Economic Interest
State Aid Blogs - m 17
The compulsory nature of an assigned public mission makes the services covered by the mission different from those provided by market operators for profit.   Introduction The justification of government intervention for the purpose of ensuring delivery of adequate services of general economic interest [SGEI] and the design of measures that compensate providers of SGEI can be very tricky. This […]
read more
No Comments
23. May 2017  |   State Aid Uncovered by Phedon Nicolaides

What Costs Are Charged by Public Authorities when they Act as Market Operators?
State Aid Blogs - m 18
Fees charged by operators to users of infrastructure must cover all relevant costs. The relevant costs are those which are causally linked to the agreements between users and operators. Introduction The rules in the Treaty on the Functioning of the European Union are neutral in their treatment of private or state-owned companies [Article 345 TFEU]. This means that companies cannot […]
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