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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28. March 2017  |   State Aid Uncovered by Phedon Nicolaides

Altmark Requires Efficiency; Article 106(2) TFEU Does Not!
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The provider of a service of general economic interest does not have to be more efficient than the “typical undertaking” in its sector.   Introduction   On 8 March 2017, the Court of Justice rendered its judgment in case C‑660/15 P Viasat Broadcasting v European Commission.[1] Viasat Broadcasting appealed against the judgment of the General Court of 24 September 2015 in […]
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21. March 2017  |   State Aid Uncovered by Phedon Nicolaides

Support for Illiquid but Solvent Banks
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State aid may be granted to solvent banks which face temporary liquidity difficulties.   Introduction State aid rules have their own logic and are applied independently of other policy areas. However, in certain situations, the Commission enforces State aid rules in conjunction with linked provisions in other fields. A typical example is taxes levied on agricultural products to raise revenue […]
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14. March 2017  |   State Aid Uncovered by Phedon Nicolaides

PART II: Ex Ante Assessment and Ex Post Evaluation of Risk Finance Measures
State Aid Blogs - 21.11.State resources State control
A well-designed State aid measure is preceded by a rigorous ex ante study that identifies market failure. The objectives of a well-designed measure address directly the nature and magnitude of the identified market failure. Read PART I: Ex Ante Assessment and Ex Post Evaluation of Risk Finance Measures from 7 March 2017. Ex Post Evaluation Plan Ex post evaluation focuses on i) […]
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11. March 2017  |   Guest State Aid Blog by Erika Szyszczak

State Aid is on the Agenda: Deal or No Deal
brexit
With great pleasure we welcome again Professor Erika Szyszczak to our blog. Erika is a Research Professor in Law and a Fellow of the UK Trade Policy Observatory. She is currently the Special Adviser to the House of Lords Internal Market Sub-Committee in respect of its inquiry into Brexit: competition. She is the author of The Regulation of the State […]
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7. March 2017  |   State Aid Uncovered by Phedon Nicolaides

PART I: Ex Ante Assessment and Ex Post Evaluation of Risk Finance Measures
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A well-designed State aid measure is preceded by a rigorous ex ante study that identifies market failure. The objectives of a well-designed measure address directly the nature and magnitude of the identified market failure.   Introduction The European Commission has approved, with decision SA.40991, amendments to two existing aid measures: Enterprise Investment Scheme [EIS] and Venture Capital Trust [VCT] in […]
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1. March 2017  |   State Aid Uncovered by Lexxion Publisher

Court’s Diary – March 2017
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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.   Wednesday 01/03/2017Judgment in Case T-167/14 – France v Commission (General Court – Sixth Chamber)Judgment in Case T-454/13 – SNCM v […]
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28. February 2017  |   State Aid Uncovered by Phedon Nicolaides

State Aid for R&D: What Is Research?
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Adapting know-how for the needs of clients is not research. Aid for projects for which there is no demand is not in the common interest.   Introduction The purpose of research is to discover something new. But what is often difficult to define for public authorities that wish to stimulate more research activities is how new must be the outcome […]
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21. February 2017  |   State Aid Uncovered by Phedon Nicolaides

State Aid for R&D: How Intermediaries Pass on Aid to Third Parties
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Operators of research infrastructure do not benefit from State aid, if they fully pass on the aid to the users of the infrastructure. The amount of aid must be quantified. Introduction The beneficiaries of State aid to support R&D are normally those who carry out research. However, in the case of aid to research infrastructure there may be two categories […]
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14. February 2017  |   State Aid Uncovered by Phedon Nicolaides

How to Calculate a Transparent Amount of State Aid in Public Guarantees
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State aid granted in the form of public guarantees is transparent aid when it is calculated according to the methodology of the 2008 Commission notice or a methodology that is notified to and approved by the Commission.   Introduction Aid to farmers, small enterprises or revenue-generating projects is often given in the form of state guarantees. This is because what […]
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7. February 2017  |   State Aid Uncovered by Phedon Nicolaides

The Scope of Public Service Obligations
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Public service obligations may cover both profitable and unprofitable segments of the market.   Introduction 18 January 2017, the General Court delivered its judgment in case T-92/11 RENV, Jørgen Andersen, v European Commission.[1] Mr Andersen appealed against Commission Decision 2011/3 which concluded that public service contracts between the Danish Ministry of Transport and Danske Statsbaner [DSB], the incumbent train operator, contained […]
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23. June 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: What is State aid?
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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!   Today Phedon Nicolaides answers the question “What is State aid?”, explaining the four criteria by case law & treaty. View now, comment and subscribe to our […]
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21. June 2016  |   State Aid Uncovered by Phedon Nicolaides

PART I: Combining Infrastructure Aid with SGEI Aid
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A provider of services of general economic interest may receive both investment aid and compensation for the extra costs of public service obligations.   Introduction Governments normally support large infrastructural projects through guarantees. This is because such projects have a long life, the initial investment costs are very high and the recoupment of investment takes place over a long period […]
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16. June 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: Why Should Public Authorities Be Concerned About State Aid?
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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!   Today Phedon Nicolaides tells you, why public authorities should be concerned about Stateaid. Please comment and subscribe.    Visit our YouTube Channel and show all videos. You […]
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13. June 2016  |   State Aid Uncovered by Phedon Nicolaides

Beneficiaries and Benefits of State Guarantees
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A state guarantee is presumed to lower borrowing costs. However, any other benefits in relation to customers or suppliers have to be proven.   Introduction On 26 May 2016, the General Court rendered its judgment in case T-479/11, France v Commission concerning the IFP.[1] France appealed against Commission decision 2012/26 which found that France granted aid to IFP. IFP iIFP s […]
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7. June 2016  |   State Aid Uncovered by Phedon Nicolaides

Sport Facilities, the Balancing Test and Distortion of Competition
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Aid measures that target persons with particular needs and who are not adequately provided by the market are not likely to be found to distort competition contrary to the common interest, even if there is some substitutability between the subsidised services and similar services provided by the market on commercial terms.   Introduction In August 2011, the Commission received a […]
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31. May 2016  |   State Aid Uncovered by Phedon Nicolaides

Support for Green Electricity: State Resources and “PreussenElektra”
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Arrangements established by law whereby undertakings are compensated for any extra payments they make to producers of green electricity are likely to bring those payments under the control of the state. Those payments will then be classified as state resources regardless of whether they are managed by private entities.   Introduction On 10 May 2016, the General Court issued its […]
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24. May 2016  |   State Aid Uncovered by Phedon Nicolaides

Tax Exemptions Authorised by the Council of the EU
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State aid is an objective concept. When the Commission assesses a measure it has to examine its effects and cannot be bound by a decision of the Council. A beneficiary of State aid cannot entertain legitimate expectations simply because the Commission does not appear to object to the aid.   Introduction On 22 April 2016, the General Court rendered its judgment […]
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18. May 2016  |   State Aid Uncovered by Phedon Nicolaides

PART II: Regional Development and i) Market Economy Operator Test ii) Services of General Economic Interest
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A market economy operator undertakes activities whose incremental revenue exceeds their incremental costs. A market economy operator ignores costs which are unaffected by those activities. A service of general economic interest has special characteristics that set it apart from other services with positive impact on the economy. Having a positive impact is not enough.   Part II: Public tasks and […]
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10. May 2016  |   State Aid Uncovered by Phedon Nicolaides

PART I: Regional Development and i) Market Economy Operator Test, ii) Services of General Economic Interest
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A market economy operator undertakes activities whose incremental revenue exceeds their incremental costs. A market economy operator ignores costs which are unaffected by those activities. A service of general economic interest has special characteristics that set it apart from other services with positive impact on the economy. Having a positive impact is not enough.   Introduction National and regional authorities […]
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3. May 2016  |   State Aid Uncovered by Phedon Nicolaides

Calculation of State Aid in Guarantees
State Aid Blogs - 21.11.State resources State control
State guarantees can be used to support loans for working capital. The amount of State aid in guarantees can be calculated to remain below the de minimis threshold of EUR 200,000.   Introduction With financial instruments being very much in vogue, there is much interest in the use of guarantees and loans as a means of granting State aid. Therefore, […]
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