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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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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31. January 2017  |   State Aid Uncovered by Phedon Nicolaides

Financial Cooperatives
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National courts may not question Commission decisions but they may ask the Court of Justice for guidance on how to interpret Commission decisions. Protection of shareholders of a particular category of companies is a selective measure. Introduction This is the last article dealing with the judgments that were rendered by EU courts on 21 December 2016. This article reviews the reply […]
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24. January 2017  |   by Phedon Nicolaides

Selectivity Stretched
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Derogations that result in different tax treatment are selective measures. Introduction On 21 December 2016, the Commission achieved an important legal victory when the Court of Justice found in its favour in the judgment in joint cases C‑20/15 P and C‑21/15 P, Commission v World Duty Free Group [formerly Autogrill España] and Commission v Banco Santander, respectively.[1] The Commission appealed […]
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17. January 2017  |   State Aid Uncovered by Phedon Nicolaides

Part II: Developments on the Concepts of Advantage and Selectivity
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The advantage conferred by State aid is not necessarily equivalent to the economic benefit that is eventually enjoyed by aid recipients. Incompatible State aid has to be repaid regardless of whether it is passed on to the customers of the aid recipients. Undertakings derive an advantage when state intervention reduces the costs they would bear under “normal market conditions” whereby […]
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10. January 2017  |   State Aid Uncovered by Phedon Nicolaides

Developments on the Concepts of Advantage and Selectivity
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The advantage conferred by State aid is not necessarily equivalent to the economic benefit that is eventually enjoyed by aid recipients. Incompatible State aid has to be repaid regardless of whether it is passed on to the customers of the aid recipients. Undertakings derive an advantage when state intervention reduces the costs they would bear under “normal market conditions” whereby […]
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3. January 2017  |   State Aid Uncovered by Phedon Nicolaides

Public Service Obligations and Award for Damages
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Providers of public services must keep separate accounts. The parameters for calculating the compensation for the extra costs of public services must be determined in advance. Awards for damages do not constitute State aid. However, no damages can be awarded as a substitute for incompatible State aid.   Introduction It is often asked how compensation measures for public service obligations […]
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29. December 2016  |   Guest State Aid Blog by Lexxion Publisher

Top 3 State Aid Blog Posts from 2016
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From remarks on the Commission Notice on the Notion of State aid over to the right of access and State aid procedures, our guest bloggers on the StateAidHub have shed light on various controversial State aid judgments and developments. View now the most popular posts of 2016.   With the end of 2016, we thank not only Prof Phedon Nicolaides […]
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27. December 2016  |   State Aid Uncovered by Phedon Nicolaides

Funding of the Spanish Public Broadcaster and Hypothecation of Taxes
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Tax payers have grounds to object to a tax on the basis of Article 107(1) TFEU only when the tax is “asymmetrical” or when it is “hypothecated” to an aid measure.   Introduction On 10 November 2016, the Court of Justice ruled in case C‑449/14 P, DTS v European Commission.[1] DTS, a Spanish television company, appealed against the judgment of the General […]
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22. December 2016  |   State Aid Uncovered by Lexxion Publisher

5 most read articles by Phedon Nicolaides in 2016
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Questions around selectivity of tax measures, the private creditor test, the new Commission Notice on the Notion of State 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 2016. We have also started an exciting new journey of State aid videos on […]
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5. January 2016  |   State Aid Uncovered by Phedon Nicolaides

An Exception Is Not Necessarily Selective: The Case of the Spanish Tax Lease [1]
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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 […]
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29. December 2015  |   State Aid Uncovered by Phedon Nicolaides

Regional Aid to Car Manufacturers – Part II
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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 […]
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23. December 2015  |   State Aid Uncovered by Lexxion Publisher

Top 5 Most Read State Aid Uncovered Posts of the Year
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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 […]
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22. December 2015  |   State Aid Uncovered by Phedon Nicolaides

Regional Aid to Car Manufacturers
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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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14. December 2015  |   State Aid Uncovered by Phedon Nicolaides

Altmark, again!
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Sectoral regulation is not the same as definition of public service obligation. Aid that favours a certain technology is incompatible with the internal market, unless it can be objectively justified.   Introduction “Altmark” has become a permanent feature in the landscape of State aid. Its application was again one of the main issues of contention in six judgments rendered by […]
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8. December 2015  |   State Aid Uncovered by Phedon Nicolaides

i) New v Existing State Aid ii) Exemption from VAT and Attribution to Member States iii) The Duty of National Courts to Protect Competitors from Illegal State aid
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Aid that pre-exists the entry of a Member State into the EU is “existing” and does not have to be recovered. VAT exemptions authorised by the EU are not State aid. National courts must disregard national legal provisions that prevent them from acting against illegal aid.   Introduction This article examines a variety of issues: when State aid is existing […]
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1. December 2015  |   State Aid Uncovered by Lexxion Publisher

Court’s Diary – December 2015
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Find below the court’s diary for all State aid cases. 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 07/12/2015 Judgment in Case T-242/12 – SNCF v Commission (General Court – Seventh Chamber)   Thursday 17/12/2015 Judgment in […]
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1. December 2015  |   State Aid Uncovered by Phedon Nicolaides

Investment and Operating Aid to Airports
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State aid is granted on the date the relevant public authority makes an irrevocable commitment to grant it or creates a legal entitlement for the beneficiary. Loans that impose public policy obligations on borrowers are not in conformity with the behaviour of a private investor.   Introduction This is a rather long article because it examines a rich case that […]
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24. November 2015  |   State Aid Uncovered by Phedon Nicolaides

Market Economy Investor Principle
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Public investment is free of State aid when it is made at the same time and on equal terms with investments by private investors. In the absence of an equivalent private investment, public investment does not constitute State aid when it is demonstrated ex ante that it is capable of generating market rates of return.   Introduction Public authorities are […]
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16. November 2015  |   State Aid Uncovered by Phedon Nicolaides

Special Tax Treatment to Alleviate Structural Disadvantages
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Favourable tax treatment to alleviate “structural disadvantages” suffered by certain companies is a selective measure that falls within the scope of Article 107(1).   Introduction Member States use taxes not just to raise revenue but also as instruments of public policy. They impose taxes on activities they want to discourage [e.g. smoking, driving] and they relieve from taxes activities they […]
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