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 […]
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.
12. April 2016 |
State Aid Uncovered
by Phedon Nicolaides
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, […]
5. April 2016 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
4. April 2016 |
Guest State Aid Blog
by Lexxion Publisher
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 14/04/2016 Judgment in Case C-100/15 P – Netherlands Maritime Technology Association v Commission (Court of […]
30. March 2016 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
23. March 2016 |
State Aid Uncovered
by Phedon Nicolaides
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 […]
15. March 2016 |
State Aid Uncovered
by Phedon Nicolaides
Aid to remedy the damage caused by natural disasters can be granted only if the damage is the direct consequence of the disaster and the amount of aid must be limited to the actual damage suffered by each individual undertaking. Absence of documentary evidence can lead to absolute impossibility to recover incompatible aid. Introduction Article 107(2) TFEU declares three […]
8. March 2016 |
State Aid Uncovered
by Phedon Nicolaides
Public funding of open and freely used infrastructure is not State aid. Public funding of project-specific, dedicated or bespoke infrastructure is State aid. Public funding of infrastructure connecting public and private parts may be State aid if the relevant national rules require developers to bear the cost. Introduction The Commission has recently examined an infrastructure project in the vicinity […]
4. March 2016 |
Guest State Aid Blog
by G. Guðmundsson
We are happy to welcome two young professionals on the State Aid Blog today. Guðmundur Guðmundsson and Amie Eliassen are trainees at EFTA Surveillance Authority in the Competition and State Aid Directorate and give their insights on working in this dynamic and multicultural work environment. You want to apply for a traineeship yourself? Read on for more information. The […]
3. March 2016 |
Guest State Aid Blog
by Lexxion Publisher
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. Tuesday 01/03/2016 Judgment in Case T-79/14 – Secop v Commission (General Court – First Chamber) Thursday 03/03/2016 Judgment […]
1. April 2015 |
State Aid Uncovered
by Phedon Nicolaides
The amount of State aid in a guarantee that makes possible the granting of a loan to a well-collateralised firm in difficulty is not the difference in premium but the difference in interest rates. Beneficiaries of guarantees not notified to the Commission do not have any remedy under EU law. Introduction Last week’s article examined State aid in the […]
24. March 2015 |
State Aid Uncovered
by Phedon Nicolaides
Low-interest loans may be used to support investments. The granting of de minimis aid through loans is possible only if loans are secured against collateral. The 2008 Commission Communication on interest rates does not apply to subordinated, non-collateralised loans. Introduction “Investment for growth” is the slogan which seems to be on everybody’s lips in Brussels. Last Friday, the European […]
16. March 2015 |
State Aid Uncovered
by Phedon Nicolaides
Compensation for structural disadvantages encumbering undertakings is still State aid. Compensation for structural disadvantages encumbering SGEI providers is not State aid only if it satisfies the Altmark criteria. Reductions of excise duties approved by the Council may still be subject to scrutiny by the Commission under State aid rules. Exception of fossil fuel from energy taxes when it is not […]
10. March 2015 |
State Aid Uncovered
by Phedon Nicolaides
Health insurance which is based on the principle of social solidarity is not economic in nature. Solidarity means that citizens have a right to the service in question and the quality of the service they obtain is not linked to the price they pay, if any. Health services which are provided privately for remuneration are economic in nature. Services provided […]
2. March 2015 |
State Aid Uncovered
by Phedon Nicolaides
When the Commission orders recovery of aid that is intended to be passed on to final consumers, it must first calculate the amount, if any, that has been retained by the direct recipients of the aid. If the calculation is too complex, the Commission can delegate that task to national authorities. Introduction On 5 February 2015, the General Court ruled […]
24. February 2015 |
State Aid Uncovered
by Phedon Nicolaides
The granting of exclusive rights may confer an advantage but does not in itself result in transfer of state resources. Private undertakings that hold exclusive rights are not utilising state resources by the mere fact that they operate under rights conferred by the state. Price regulation is a regulatory act which does not entail transfer of state resources. Introduction […]
18. February 2015 |
State Aid Uncovered
by Phedon Nicolaides
Public service obligations must be entrusted by an official act and defined with sufficient precision. Imprecise definition of public service obligations makes it impossible to identify the costs which are caused by such obligations. Consequently, imprecise definition of public service obligations makes it impossible to grant compensation because subsidisation of non-eligible costs cannot be excluded. Compensation may not be granted […]
9. February 2015 |
State Aid Uncovered
by Phedon Nicolaides
Different interventions that aim to finance the same restructuring plan constitute a single measure. A private investor may consider a possible damage of its reputation from laying off workers but the damage has to be quantified. Finance support of employees provides an indirect benefit to the employer. Introduction In this article I review two similar cases: a judgment of […]
3. February 2015 |
State Aid Uncovered
by Phedon Nicolaides
Security of energy supply can be a service of general economic interest. Avoiding harm to the environment is not one of the principles that underpin the internal market and which may not be violated by State aid measures. Determining whether competition is distorted does not require definition of the relevant markets. This article examines two apparently different but in […]
26. January 2015 |
State Aid Uncovered
by Phedon Nicolaides
Public infrastructure which is not exploited for commercial purposes does not result in an advantage for its users. Undertakings which are subject to different regulatory requirements can be treated differently. Cross-border trade can be affected even when there is no direct provision of cross-border services. Introduction The Leipzig-Halle judgment of 2011 was a shock to public funding of infrastructure […]