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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11. August 2016  |   Guest State Aid Blog by Lexxion Publisher

New Video: What is GBER and how to use it?
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What is State aid? Why do I need to be concerned about State aid? These and many more basic questions are answered in our videos on YouTube. Make sure to visit us!   Today Alexander Rose from the Government Legal Service of the UK explains what the GBER (=General Block Exemption Regulation) is and how to use it. Watch the video, comment and […]
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4. August 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: What can I do if my measure contains 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 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 […]
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2. August 2016  |   State Aid Uncovered by Phedon Nicolaides

State Aid Rules and Transfer Pricing
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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, […]
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28. July 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: If you want to learn more about State aid issues…
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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!   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 […]
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26. July 2016  |   State Aid Uncovered by Phedon Nicolaides

Compatible State Aid May Have Negative Effects on some Market Operators
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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.   […]
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21. July 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: Which types of State aid are compatible with the internal market?
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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!   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 […]
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18. July 2016  |   State Aid Uncovered by Phedon Nicolaides

State Aid to Electricity Intensive Users
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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 […]
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14. July 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: When Is State Aid Allowed and What Is „Good 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!   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“. […]
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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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13. October 2015  |   State Aid Uncovered by Phedon Nicolaides

A Primer on Compensation for the Extra Costs of Public Service Obligations Taking into Account Efficiency Gains
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When Member States impose PSOs they are never allowed to grant even a single euro in excess of the net extra costs of the PSO. That is prohibited for the simple reason that it results in over-compensation.     Introduction The Lexxion seminar on state aid for transport and transport infrastructure that took place in Brussels on 21-22 September (view […]
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5. October 2015  |   State Aid Uncovered by Phedon Nicolaides

The State Acting as a Private Creditor & State Aid Enforcement and Procedural Rights
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In this article I review Commission decision SA.37100 on JSC Liepajas Metalurgs [LM], once Latvia’s largest steel company and major employer. The decision examines whether Latvia acted promptly to recover a debt owed to it by a company that faced financial difficulties. The question was whether Latvia acted as a private creditor when it allowed the debtor to continue operations. […]
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29. September 2015  |   State Aid Uncovered by Phedon Nicolaides

Airport Infrastructure, Public Remit and the MEOT
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A public authority, acting as a private investor, may provide finance which is free of state aid to an airport and at the same time grant state aid to the same airport. Public funding of activities that fall within the exclusive tasks of the state is not state aid. When a public authority defines the activities that fall within the […]
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25. September 2015  |   State Aid Uncovered by Phedon Nicolaides

New State Aid Regulations
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Regulation 2015/1589 is the new procedural regulation. It lays down the rules for, among other things, notification of state aid, formal investigation, injunctions and recovery of incompatible aid. Because of its importance in the EU system of state aid control, it will be fully reviewed at a forthcoming article. In the Official Journal of 24 September 2015 you will find […]
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22. September 2015  |   State Aid Uncovered by Phedon Nicolaides

The Pricing of Access to an Important Project of Common European Interest
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Infrastructure that is commercially exploited [e.g. charging of tolls] is an economic activity. Infrastructure that is freely available to users is not economic activity. Access fees or tolls may be regulated. State aid must be necessary and proportional even if access fees are regulated.   Introduction This article examines Commission decision SA.39078 concerning the Fehmarn belt fixed link in Denmark.[1] This […]
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15. September 2015  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Public Service Obligations and Compensation for Damage
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Compensation for public service obligations is compatible with the internal market when, at minimum, a PSO is well defined in an entrustment constituting an official act of a public authority, the revenues and costs of the PSO are clearly identified and separated from other commercial activities and the compensation does not exceed the net extra costs of the PSO. Compensation […]
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8. September 2015  |   State Aid Uncovered by Phedon Nicolaides

Services of General Economic Interest: How to Compensate and Induce more Efficiency
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Even traditional monopolists, like postal operators, have to comply with the rules on compensation for the extra costs of public service obligations. SGEI providers can be compensated in a way that induces them to become more efficient.   Introduction This article examines case Commission decision SA.38788 concerning compensation for the UK Post Office Ltd [POL] in the period 2015-18.[1] It is […]
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2. September 2015  |   State Aid Uncovered by Phedon Nicolaides

When Do Public Pronouncements Confer an Advantage to Undertakings?
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Public pronouncements can confer an advantage if they are sufficiently precise and clearly commit a public authority to support an undertaking.   Introduction[1] Politicians often claim that they would never allow important national companies to go bust. Occasionally, such claims appear to sway market sentiment in favour of those companies. Private investors are heartened by the avowed support of the […]
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25. August 2015  |   State Aid Uncovered by Phedon Nicolaides

The Challenge of Calculating a Market Price
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The market price of land or buildings can be determined via auction, expert valuation or other appropriate methods.   Introduction On 16 July 2015, the Court of Justice delivered its judgment in case C‑39/14, BVVG Bodenverwertungs- und -verwaltungs GmbH [BVVG] v Landkreis Jerichower Land in Germany.[1] The judgment was in response to a request for a preliminary ruling concerning a dispute […]
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18. August 2015  |   State Aid Uncovered by Phedon Nicolaides

Why Do some Member States Offer so much Fiscal Aid?
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Member States differ significantly in their propensity to grant fiscal aid.   Introduction Interest in fiscal aid has been rekindled recently by two unrelated events. First, the Commission opened a number of investigations on the alleged special tax treatment accorded to multinational companies such as Apple and Starbucks. These investigations are believed to be almost completed and the Commission is […]
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