Entities that pursue profit must be classified as undertakings. Introduction On 5 February 2018, the General Court annulled Commission decision 2015/248 concerning health insurance in Slovakia [see judgment in case T‑216/15, Dôvera zdravotná poist’ovňa et al v European Commission].[1] The Commission decision was reviewed here on 10 March 2015.(View article at http://stateaidhub.eu/blogs/stateaiduncovered/post/1707.)The Commission had concluded that the providers of health […]
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.
27. February 2018 |
State Aid Uncovered
by Phedon Nicolaides
20. February 2018 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
13. February 2018 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
6. February 2018 |
State Aid Uncovered
by Phedon Nicolaides
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). […]
30. January 2018 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
23. January 2018 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
16. January 2018 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
9. January 2018 |
State Aid Uncovered
by Phedon Nicolaides
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, […]
2. January 2018 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
1. January 2018 |
Guest State Aid Blog
by Lexxion Publisher
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 […]
17. January 2017 |
State Aid Uncovered
by Phedon Nicolaides
The advantage conferred by State aid is not necessarily equivalent to the economic benefit that is eventually enjoyed by aid recipients. Incompatible State aid has to be repaid regardless of whether it is passed on to the customers of the aid recipients. Undertakings derive an advantage when state intervention reduces the costs they would bear under “normal market conditions” whereby […]
10. January 2017 |
State Aid Uncovered
by Phedon Nicolaides
The advantage conferred by State aid is not necessarily equivalent to the economic benefit that is eventually enjoyed by aid recipients. Incompatible State aid has to be repaid regardless of whether it is passed on to the customers of the aid recipients. Undertakings derive an advantage when state intervention reduces the costs they would bear under “normal market conditions” whereby […]
3. January 2017 |
State Aid Uncovered
by Phedon Nicolaides
Providers of public services must keep separate accounts. The parameters for calculating the compensation for the extra costs of public services must be determined in advance. Awards for damages do not constitute State aid. However, no damages can be awarded as a substitute for incompatible State aid. Introduction It is often asked how compensation measures for public service obligations […]
27. December 2016 |
State Aid Uncovered
by Phedon Nicolaides
Tax payers have grounds to object to a tax on the basis of Article 107(1) TFEU only when the tax is “asymmetrical” or when it is “hypothecated” to an aid measure. Introduction On 10 November 2016, the Court of Justice ruled in case C‑449/14 P, DTS v European Commission.[1] DTS, a Spanish television company, appealed against the judgment of the General […]
22. December 2016 |
State Aid Uncovered
by Lexxion Publisher
Questions around selectivity of tax measures, the private creditor test, the new Commission Notice on the Notion of State Aid and many more have moved and shaped this year’s judgments on State aid. See which articles by Prof. Phedon Nicolaides were the most popular ones in 2016. We have also started an exciting new journey of State aid videos on […]
20. December 2016 |
State Aid Uncovered
by Phedon Nicolaides
Modification of an existing aid measure turns it into a new aid measure if it affects its compatibility with the internal market. National courts must also notify to the Commission any new aid measure they detect. Introduction On 26 October 2016, the Court of Justice ruled in case C‑590/14 P, DEI v Commission.[1] DEI, the incumbent electricity producer in Greece appealed against […]
13. December 2016 |
State Aid Uncovered
by Phedon Nicolaides
Progressive taxes can constitute State aid. Exemption from a packaging tax of packaged goods which are taken abroad is within the logic of the tax system. Introduction This article reviews three tax measures which levied taxes on specific activities and products. In particular, they concern taxes on advertising, retail sales and an exemption from a tax on product packaging. […]
6. December 2016 |
State Aid Uncovered
by Phedon Nicolaides
The normal costs of an undertaking include all the costs of compliance with the obligations imposed by law. A private investor takes into account all the relevant information at the point in time it decides to invest. Introduction This article reviews two court judgments both of which concern Orange, the French incumbent telecoms operator. The first judgment finds […]
29. November 2016 |
State Aid Uncovered
by Phedon Nicolaides
State aid measures need not be open to all undertakings. Introduction On 11 October 2016, the General Court rendered its judgment in case T-167/14, TSøndagsavisen v Commission.[1] Søndagsavisen requested annulment of Commission decision SA.36366 on a measure that had been notified by Denmark. The purpose of the measure was to support production and innovation in the newspaper and magazine sector […]
23. November 2016 |
State Aid Uncovered
by Phedon Nicolaides
Public subsidies that do not affect cross-border trade either directly or indirectly do not constitute State aid in the meaning of Article 107(1). The direct trade effect is the impact on customers or users. The indirect trade effect is the impact on potential market entrants. Introduction In April 2015, the Commission surprised us with seven decisions that concluded that […]
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Recent Posts
- New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure
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- Blog Intro
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- An “Alternative” Method of Valuation for State-Aid-Free Sale of Public Land
- Loans, Guarantees and Credit Worthiness
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- Airport Operators and Budget Airlines [Commission Decision SA.23324: Finavia, Airpro and Ryanair at Tampere-Pirkkala Airport
- Sale of State-owned Airlines [Commission Decision SA.33337 on sale of subsidiaries by LOT Polish Airlines]
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Recent Comments
- Phedon Nicolaides in "Identification of Undertakings in Difficulty"
- Martyn Williams in "Identification of Undertakings in Difficulty"
- Stuart in "Identification of Undertakings in Difficulty"
- Phedon Nicolaides in "Identification of Undertakings in Difficulty"
- Phedon Nicolaides in "Non-recovery of Incompatible State aid Is Costly"
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