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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29. May 2017  |   State Aid Uncovered by Phedon Nicolaides

The Art, Science and Law of Funding Services of General Economic Interest
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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 […]
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23. May 2017  |   State Aid Uncovered by Phedon Nicolaides

What Costs Are Charged by Public Authorities when they Act as Market Operators?
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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 […]
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16. May 2017  |   State Aid Uncovered by Phedon Nicolaides

Regional Investment Aid and Sale of Land
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A company that applies for State aid is considered to acquire a right to that aid when assurances it has received from the granting authority can be enforced in court. The price of land can be reduced by the cost that a new owner would expend to make the land usable.   Introduction In decision SA.40448, the Commission assessed aid […]
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9. May 2017  |   State Aid Uncovered by Phedon Nicolaides

Bank Resolution Has to Comply with State Aid Rules as well as the Banking Recovery and Resolution Directive
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Insurance funds contributed by banks become state resources if they are managed by public agencies. Sale of non-performing loans at market prices does not involve State aid.   Introduction Since 1 January 2016, the resolution financial institutions in Europe has been subject to stricter rules. The institutions which are established in the Eurozone fall with the jurisdiction of the Single […]
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3. May 2017  |   State Aid Uncovered by Phedon Nicolaides

Identification of the Reference Tax System: The Case of a Tax on Advertising Turnover
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Turnover taxes should be levied at a single rate. Introduction This is the fourth case involving turnover taxes that have been declared to be incompatible with the internal market [see Commission decision 2017/329].[1] A brief summary was published here on 13 December 2016 [http://stateaidhub.eu/blogs/stateaiduncovered/post/7697]. The reasoning of the Commission follows closely that of the other cases. However, what makes this case […]
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1. May 2017  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – May 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.   Thursday 18/05/2017 Judgment in case C-150/16 – Fondul Proprietatea vs Complexul Energetic Oltenia SA (Court of Justice – Fifth Chamber) […]
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26. April 2017  |   State Aid Uncovered by Phedon Nicolaides

A Postscript on Brexit and State Aid
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A short note on the previous blog post on State aid control in the UK after its withdrawal from the EU.   A few weeks ago, I wrote an article on State aid control in the UK after its withdrawal from the European Union [http://stateaidhub.eu/blogs/stateaiduncovered/post/8330]. In that article I suggested that the UK would maintain the same or a similar […]
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25. April 2017  |   State Aid Uncovered by Phedon Nicolaides

Public Support for Nature Conservation is not State Aid
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A nominal price may be charged for genuine non-economic services as long as it supports the achievement of the non-economic objective and covers only a small part of total costs.   Introduction Germany notified two measures of support for nature conservation in Saxony-Anhalt. Measure 1 [SA.45645] concerned projects of nature conservation and landscape maintenance.[1] Measure 2 [SA.46073] concerned aid to associations […]
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18. April 2017  |   State Aid Uncovered by Phedon Nicolaides

Ex Post Definition of the Method of Compensation Makes State Aid Incompatible with the Internal Market
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Compliance with public service obligations imposed on a provider of services of general economic interest should not be left to the discretion of that provider.   Introduction Last week’s article examined a public service obligation for providing maritime links to Corsica (view it here: http://stateaidhub.eu/blogs/stateaiduncovered/post/8370). This week’s article reviews a similar obligation for maritime links to the neighbouring island of Sardinia. […]
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11. April 2017  |   State Aid Uncovered by Phedon Nicolaides

The Need for Public Services Is Shown by Absence of Private Services
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The scope of public service obligations must be proportional to the identified market failure.   Introduction On 1 March 2017, the General Court dismissed the application of Societe Nationale Maritime Corse Mediterranee [SNCM] against the Commission [case T-454/13, SNCM v Commission].[1] The Commission had found in decision 2013/435 that SNCM received incompatible State aid that had to be recovered. SNCM carried […]
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12. July 2016  |   State Aid Uncovered by Phedon Nicolaides

State Aid Modernisation: First Results
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There has been an impressive increase in the use of the General Block Exemption Regulation. However, Member States still notify measures which are acknowledged by the Commission with “comfort letters”.   Introduction[1] In May 2012, the European Commission launched its State Aid Modernisation [SAM] initiative. After two years of consultations with the Member States, a set of new State aid […]
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7. July 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: Practical Examples of 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!   After answering the question “Who can grant State aid?” last week, Phedon Nicolaides today gives you some practical examples of State aid such as subsidies by public authorities, […]
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5. July 2016  |   State Aid Uncovered by Phedon Nicolaides

PART II: Combining Infrastructure Aid with SGEI Aid
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After the spontaneous words on Brexit and State aid last week, I continue with the 2nd part of the post on infrastructure and SGEI today. A provider of services of general economic interest may receive both investment aid and compensation for the extra costs of public service obligations.   Part II: SGEI[1] Member States are free to determine the services […]
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30. June 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: Who Can Grant 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!   After answering the question “What is State aid?” in his last video, Phedon Nicolaides today speaks about “Who can grant State aid?”. Watch the video, comment and subscribe to […]
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27. June 2016  |   State Aid Uncovered by Phedon Nicolaides

Brexit and State Aid: The Day After
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The second part of the Lithuanian measure on the LNG terminal was scheduled to be published this week. In view of the referendum in favour of exit of the UK from the EU, the second part of the Lithuanian measure will be published next week. Instead, this week the focus is on the impact of Brexit on State aid. Introduction […]
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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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