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.
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 […]
This blog examines how much aid goes to support broadband networks and what lessons can be drawn from the Commission’s decisional practice. Introduction A principal objective of the State Aid Modernisation was to free Commission resources from the time-consuming task of checking the conformity of routine measures of State aid. Consequently, the General Block Exemption Regulation was extended to […]
Today we are glad to welcome Nevin Alija to the State Aid Blog. She is a PhD Candidate at the Católica Research Center for the Future of Law of the Católica Global School of Law, Universidade Católica Portuguesa. In this blog post she examines case C-329/15 ENEA SA w Poznaniu v Prezes Urzędu Regulacji Energetyki. Thank you, Nevin, for sharing […]
Aid must be capable of remedying the regional handicap. Introduction A novel aspect of the 2014 State Aid Modernisation was the requirement for ex-post evaluation of large or unusual State aid measures. The purpose of the ex-post evaluation is to determine the effectiveness of State aid. The outcome of the evaluation does not affect the legality of the aid. […]
Transfers of public assets for the purpose of extinguishing debt have to be valued according to private creditor principle. Transfers of public assets that involve State aid must be notified to the Commission. Introduction Sale or transfer of state assets is a tricky process. A possible undervaluation of the assets results in State aid for the benefit of the […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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, […]
Bank resolution may involve State aid. However, the depositors do not normally benefit from State aid, nor do the buyers of the viable assets, if they pay a market price. Any aid normally goes to the remaining, non-performing, assets that are eventually liquidated. Introduction The new bank resolution regime that came into force on 1 January 2016 aims to […]
A private investor always takes into account all available information before it makes any investment. Similarly, a private creditor takes into account all available options for recovering the largest possible amount of the money that is due. Such options may include different legal procedures. In assessing alternative options, a private creditor considers not only the amount that may be recovered, […]
Public funding of local infrastructure is not State aid when the responsibility for the infrastructure falls within the remit of public authorities, it is not commercially exploited, it is open to all users, it is not intended to support the needs of any particular undertaking and any benefits to any undertaking are incidental. Introduction Even since the adoption of […]
Public funding of advisory and information activities may constitute State aid. Public funding of industry associations may constitute State aid. Introduction An article that was published on this blog in January (view the article HERE) dealt with the issue of compulsory tests. If tests which are intended to safeguard public health are paid for by the state, is there any […]
Membership of a compulsory insurance scheme can still confer an advantage to participating undertakings. Private contributions can still become state resources if they are paid into a fund that is managed by the state. Member States always have the option to ask for a measure to be assessed directly on the basis of the Treaty but they have to justify […]
