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 Boundaries of Non-Economic Infrastructure and the Limits of the Funding Gap Method

Public funding of assets which are used exclusively by certain undertakings constitutes State aid. If the state chooses to fund certain assets or activities, then it must do so consistently in all regions and in relation to all affected undertakings.   Introduction A typical mission of the state is to provide public goods. Normally public funding of public goods is […]

Connecting Public and Private Infrastructure

Public funding of public infrastructure is not State aid. Public funding of connections between public and private infrastructure is not State aid as long as it is open to all users and no fee is charged.   Introduction Last week’s article examined the use of a port facility. This week the focus is on a related issue: investment in port […]

Possible Advantage from the Exclusive Use of Public-Funded Infrastructure

The exclusive use of a public asset or an asset funded by public money may confer an advantage in the meaning of Article 107(1) TFEU if several competitors express their interest to use the same asset.   Introduction As public authorities are becoming more aware that placing public assets at the disposal of undertakings can involve State aid, they increasingly […]

Nature Conservation as a Service of General Economic Interest

Public funding of non-economic activities does not create State aid problems when any related economic activities are clearly separated. The 2012 SGEI package can apply retroactively.   Introduction Member States of the European Union are free to designate the services they consider to be in the general economic interest. However, the wide discretion they enjoy in this respect falls under […]

Is there an Advantage when the State Pays for Compulsory Milk Tests?

Undertakings obtain an advantage when the state pays for their normal costs. Normal costs are costs which are inherent in the operations of undertakings. The costs of meeting legal obligations are normal.   Introduction The case law on advantage in the meaning of Article 107(1) TFEU says that aid confers an advantage to undertakings when they obtain a benefit that […]

Valuation of Assets Disposed by the State

The value of an asset can be determined according to different methods. The main methods examine future income or comparable transactions or stock market valuation. Agreements between sellers and buyers that contain indemnification clauses or settle past claims do not reflect the true market value of the sold asset.   Introduction 9 December 2015, the General Court rendered its judgment […]

An Exception Is Not Necessarily Selective: The Case of the Spanish Tax Lease [1]

An exception from a tax system is not selective if it is a priori open to any tax payer. Checks by tax authorities to ensure that a measure is applied correctly do not constitute exercise of administrative discretion that may render a measure de facto selective. The impact of a measure on trade and competition cannot be merely presumed just […]

Regional Aid to Car Manufacturers – Part II

This is the second part of the article that was published last week. Regional aid, like all State aid, must be necessary and proportional. Regional aid is necessary when investment in an assisted region is more costly. Regional aid is proportional when it does not exceed the amount which can make the investment sufficiently profitable or offset the cost disadvantage […]

Top 5 Most Read State Aid Uncovered Posts of the Year

Questions around Altmark, the Market Economy Investor Principle, the granting of De Minimis 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 2015.   With the approach of the end of the third year of Prof. Nicolaides’ blog State Aid Uncovered, we […]

Regional Aid to Car Manufacturers

Regional aid, like all State aid, must be necessary and proportional. Regional aid is necessary when investment in an assisted region is more costly. Regional aid is proportional when it does not exceed the amount which can make the investment sufficiently profitable or offset the cost disadvantage of investment in an assisted region.   Introduction In July 2014, the European […]

State Aid Uncovered ×

The Boundaries of Non-Economic Infrastructure and the Limits of the Funding Gap Method

Public funding of assets which are used exclusively by certain undertakings constitutes State aid. If the state chooses to fund certain assets or activities, then it must do so consistently in all regions and in relation to all affected undertakings.   Introduction A typical mission of the state is to provide public goods. Normally public funding of public goods is […]

Connecting Public and Private Infrastructure

Public funding of public infrastructure is not State aid. Public funding of connections between public and private infrastructure is not State aid as long as it is open to all users and no fee is charged.   Introduction Last week’s article examined the use of a port facility. This week the focus is on a related issue: investment in port […]

Possible Advantage from the Exclusive Use of Public-Funded Infrastructure

The exclusive use of a public asset or an asset funded by public money may confer an advantage in the meaning of Article 107(1) TFEU if several competitors express their interest to use the same asset.   Introduction As public authorities are becoming more aware that placing public assets at the disposal of undertakings can involve State aid, they increasingly […]

Nature Conservation as a Service of General Economic Interest

Public funding of non-economic activities does not create State aid problems when any related economic activities are clearly separated. The 2012 SGEI package can apply retroactively.   Introduction Member States of the European Union are free to designate the services they consider to be in the general economic interest. However, the wide discretion they enjoy in this respect falls under […]

Is there an Advantage when the State Pays for Compulsory Milk Tests?

Undertakings obtain an advantage when the state pays for their normal costs. Normal costs are costs which are inherent in the operations of undertakings. The costs of meeting legal obligations are normal.   Introduction The case law on advantage in the meaning of Article 107(1) TFEU says that aid confers an advantage to undertakings when they obtain a benefit that […]

Valuation of Assets Disposed by the State

The value of an asset can be determined according to different methods. The main methods examine future income or comparable transactions or stock market valuation. Agreements between sellers and buyers that contain indemnification clauses or settle past claims do not reflect the true market value of the sold asset.   Introduction 9 December 2015, the General Court rendered its judgment […]

An Exception Is Not Necessarily Selective: The Case of the Spanish Tax Lease [1]

An exception from a tax system is not selective if it is a priori open to any tax payer. Checks by tax authorities to ensure that a measure is applied correctly do not constitute exercise of administrative discretion that may render a measure de facto selective. The impact of a measure on trade and competition cannot be merely presumed just […]

Regional Aid to Car Manufacturers – Part II

This is the second part of the article that was published last week. Regional aid, like all State aid, must be necessary and proportional. Regional aid is necessary when investment in an assisted region is more costly. Regional aid is proportional when it does not exceed the amount which can make the investment sufficiently profitable or offset the cost disadvantage […]

Top 5 Most Read State Aid Uncovered Posts of the Year

Questions around Altmark, the Market Economy Investor Principle, the granting of De Minimis 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 2015.   With the approach of the end of the third year of Prof. Nicolaides’ blog State Aid Uncovered, we […]

Regional Aid to Car Manufacturers

Regional aid, like all State aid, must be necessary and proportional. Regional aid is necessary when investment in an assisted region is more costly. Regional aid is proportional when it does not exceed the amount which can make the investment sufficiently profitable or offset the cost disadvantage of investment in an assisted region.   Introduction In July 2014, the European […]

State Aid Uncovered ×

The Boundaries of Non-Economic Infrastructure and the Limits of the Funding Gap Method

Public funding of assets which are used exclusively by certain undertakings constitutes State aid. If the state chooses to fund certain assets or activities, then it must do so consistently in all regions and in relation to all affected undertakings.   Introduction A typical mission of the state is to provide public goods. Normally public funding of public goods is […]

Connecting Public and Private Infrastructure

Public funding of public infrastructure is not State aid. Public funding of connections between public and private infrastructure is not State aid as long as it is open to all users and no fee is charged.   Introduction Last week’s article examined the use of a port facility. This week the focus is on a related issue: investment in port […]

Possible Advantage from the Exclusive Use of Public-Funded Infrastructure

The exclusive use of a public asset or an asset funded by public money may confer an advantage in the meaning of Article 107(1) TFEU if several competitors express their interest to use the same asset.   Introduction As public authorities are becoming more aware that placing public assets at the disposal of undertakings can involve State aid, they increasingly […]

Nature Conservation as a Service of General Economic Interest

Public funding of non-economic activities does not create State aid problems when any related economic activities are clearly separated. The 2012 SGEI package can apply retroactively.   Introduction Member States of the European Union are free to designate the services they consider to be in the general economic interest. However, the wide discretion they enjoy in this respect falls under […]

Is there an Advantage when the State Pays for Compulsory Milk Tests?

Undertakings obtain an advantage when the state pays for their normal costs. Normal costs are costs which are inherent in the operations of undertakings. The costs of meeting legal obligations are normal.   Introduction The case law on advantage in the meaning of Article 107(1) TFEU says that aid confers an advantage to undertakings when they obtain a benefit that […]

Valuation of Assets Disposed by the State

The value of an asset can be determined according to different methods. The main methods examine future income or comparable transactions or stock market valuation. Agreements between sellers and buyers that contain indemnification clauses or settle past claims do not reflect the true market value of the sold asset.   Introduction 9 December 2015, the General Court rendered its judgment […]

An Exception Is Not Necessarily Selective: The Case of the Spanish Tax Lease [1]

An exception from a tax system is not selective if it is a priori open to any tax payer. Checks by tax authorities to ensure that a measure is applied correctly do not constitute exercise of administrative discretion that may render a measure de facto selective. The impact of a measure on trade and competition cannot be merely presumed just […]

Regional Aid to Car Manufacturers – Part II

This is the second part of the article that was published last week. Regional aid, like all State aid, must be necessary and proportional. Regional aid is necessary when investment in an assisted region is more costly. Regional aid is proportional when it does not exceed the amount which can make the investment sufficiently profitable or offset the cost disadvantage […]

Top 5 Most Read State Aid Uncovered Posts of the Year

Questions around Altmark, the Market Economy Investor Principle, the granting of De Minimis 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 2015.   With the approach of the end of the third year of Prof. Nicolaides’ blog State Aid Uncovered, we […]

Regional Aid to Car Manufacturers

Regional aid, like all State aid, must be necessary and proportional. Regional aid is necessary when investment in an assisted region is more costly. Regional aid is proportional when it does not exceed the amount which can make the investment sufficiently profitable or offset the cost disadvantage of investment in an assisted region.   Introduction In July 2014, the European […]

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