A public authority acts like a private investor when it injects capital in a stricken bank if there is a realistic prospect of sufficient return that compensates it for the risk it bears. Introduction Caixa Geral de Depósitos (CGD) is the largest bank in Portugal and is now fully owned by the State. In June 2012, Portugal notified to […]
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.
29. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
24. August 2017 |
Guest State Aid Blog
by Lexxion Publisher
Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]
22. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
Relief from a penalty imposed by EU rules is State aid that is incompatible with the internal market. Introduction EU rules contain a standard exclusion: State aid cannot be declared compatible with the internal market when it is non-severable [i.e. cannot be separated] from a violation of EU law. Yet, cases involving non-severable violations of EU law are rare. […]
15. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
State aid for banks can be granted without triggering resolution in cases of precautionary recapitalisation and liquidation. Introduction A primary objective of the European response to the financial crisis was to sever the link between troubled banks and indebted sovereign. The principle now is that if a bank needs money to meet the capital adequacy ratio required by banking […]
10. August 2017 |
Guest State Aid Blog
by Lexxion Publisher
Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]
8. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
The sale of a public asset is free of State aid when it is open, transparent, non-discriminatory, unconditional and the award is made to the highest binding and credible offer. Introduction The rules on State aid to financial institutions and banks have become very strict. Owners and creditors have to be bailed in [the so-called burden sharing] and the […]
1. August 2017 |
State Aid Uncovered
by Phedon Nicolaides
The eligibility of an aid applicant and the legality of the aid are determined at the point when the aid is granted. If afterwards the aid recipient ceases to be an SME or enters in financial difficulties it is not a relevant issue. Introduction When Member States grant aid on the basis of the General Block Exemption Regulation [Regulation […]
27. July 2017 |
Guest State Aid Blog
by Lexxion Publisher
Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]
25. July 2017 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
18. July 2017 |
State Aid Uncovered
by Phedon Nicolaides
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” […]
30. August 2016 |
State Aid Uncovered
by Phedon Nicolaides
This is the second article in a series of three that reviews the Commission’s Notice on the Notion of State Aid.* Last week’s article focused on the concepts of economic activity and state resources.** Next week’s article will conclude with a presentation of the conditions under which trade is affected and competition distorted and an analysis of the application of […]
23. August 2016 |
State Aid Uncovered
by Phedon Nicolaides
The Notice provides a thorough review of the case law and the decisional practice of the Commission. Introduction After more than two years of deliberations, the Commission Notice on the Notion of State Aid was published in the Official Journal on 19 July 2016.[1] The Notice presents “the Commission’s understanding of Article 107(1) of the Treaty, as interpreted by the […]
16. August 2016 |
State Aid Uncovered
by Phedon Nicolaides
Member States must publish the aid measures they adopt on the basis of the GBER. Failure to publish prevents them from being exempted from notification and renders any aid illegal. Introduction On 21 July 2016, the Court of Justice delivered a judgment in response to a request for a preliminary ruling in case C-493/14, Dilly’s Wellnesshotel v Finanzamt Linz.[1] An […]
4. August 2016 |
State Aid Uncovered
by Lexxion Publisher
What is State aid? Why do I need to be concerned about State aid? These and many more basic questions will be answered in our videos on YouTube. Make sure to visit us! After Phedon Nicolaides has given us examples of “good aid”, today he answers the question “What can I do if my measure contains State aid?”. View the […]
2. August 2016 |
State Aid Uncovered
by Phedon Nicolaides
Tax rulings on transfer pricing have to approximate market-based outcomes. Introduction Twenty years ago, the European Commission initiated discussion on how State aid rules could apply to direct taxation. In 1998 it adopted its Notice on direct business taxation. At about the same time the Commission launched several formal investigations which culminated in negative decisions. In 2013 and 2014, […]
28. July 2016 |
State Aid Uncovered
by Lexxion Publisher
What is State aid? Why do I need to be concerned about State aid? These and many more basic questions will be answered in our videos on YouTube. Make sure to visit us! 7 weeks ago we started our new State aid journey on YouTube and thank you for viewing our videos, commenting and subscribing to our channel! Today […]
26. July 2016 |
State Aid Uncovered
by Phedon Nicolaides
The existence of market failure is not necessary for aid to be declared compatible under Article 107(3). Market failure does not mean that the market is completely unable to supply a good or service. State aid aiming to remedy market failure may be compatible with the internal market even if it has a negative impact on some market operators. […]
21. July 2016 |
State Aid Uncovered
by Lexxion Publisher
What is State aid? Why do I need to be concerned about State aid? These and many more basic questions will be answered in our videos on YouTube. Make sure to visit us! Last week Phedon Nicolaides gave examples of „good aid“. Today he explains which types of State aid are compatible with the internal market, such as environmental aid, regional development […]
18. July 2016 |
State Aid Uncovered
by Phedon Nicolaides
The risk of relocation outside the EU is not accepted as a justification for the granting of State aid. Introduction The European Commission has had to assess many measures of State aid to producers of electricity from renewable energy sources [RES producers or “green” electricity producers] and to intensive users of electricity [EIUs]. The former have benefitted from investment […]
14. July 2016 |
State Aid Uncovered
by Lexxion Publisher
What is State aid? Why do I need to be concerned about State aid? These and many more basic questions will be answered in our videos on YouTube. Make sure to visit us! Last week Phedon Nicolaides gave „Practical Examples of State aid“, today he addresses the question „What type of aid is allowed?“. This aid is called „good aid“. […]