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. December 2015  |   State Aid Uncovered by Phedon Nicolaides

Regional Aid to Car Manufacturers – Part II
State Aid Blogs - m 42
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
State Aid Blogs - m 6 2
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
State Aid Blogs - m 42
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!
State Aid Blogs - m 5 2
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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12. December 2015  |   Guest State Aid Blog by Lexxion Publisher

Top 3 State Aid Blog Posts from 2015
fireworks
From Amazon’s ‘advance pricing agreement’ over State aid to the Hungarian electricity market to Black Cabs’ exclusive rights in London, our guest bloggers on the StateAidHub have shed light on various controversial State aid judgments and developments. View now the most popular posts of 2015.   As 2015 and therefore the StateAidHub’s first year draws to a close, we thank […]
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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
State Aid Blogs - m 1 4
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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3. December 2015  |   Guest State Aid Blog by Emanuela Matei

The Interpretation of Conflicting Norms regarding the Validity of State Aid Infolding Contracts Must Be Consistent with the Safeguard of Individual Rights Created by EU State Aid Law (C 505/14, Klausner)
forest
The following blog post is another contributory piece by Emanuela Matei, Associate Researcher at the Centre of European Legal Studies, Bucharest. Matei holds a Juris Master in European Business Law (Lund University, June 2012), a Magister legum (Lund University, June 2010) and a BSc in Economics & Business Administration (Lund University, June 2009). We are very glad to welcome her […]
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1. December 2015  |   State Aid Uncovered by Lexxion Publisher

Court’s Diary – December 2015
State Aid Blogs - m 41
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
State Aid Blogs - m 18
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
State Aid Blogs - m 3 4
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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2. November 2014  |   State Aid Uncovered by Phedon Nicolaides

The Market Economy Investor Test Applied to a Financially Troubled Company
SAS Airbus
Public funding of an undertaking is free of State aid when it is accompanied at the same time and on equivalent terms by similar private funding. If public funding is provided at the insistence of the private investors, it cannot be considered to be “pari passu” with the private participation. Public funding into a financially troubled company can still be […]
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27. October 2014  |   State Aid Uncovered by Phedon Nicolaides

A Measure is Selective if its Application is Narrower than the Scope of the Objective it Seeks to Achieve
Atomium Monument
A measure is attributed to a decision of a Member State if it is allowed but not mandated by an EU directive. A measure is selective when in practice it is open to fewer undertakings than the ones to which it can potentially apply by its own defined objectives. Introduction   This article examines Commission Decision 2014/686 on a guarantee […]
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20. October 2014  |   State Aid Uncovered by Phedon Nicolaides

i) State Aid Can Be Attributed to the State even when Granted via Faulty Procedures ii) Who Can Challenge a Commission Decision Authorising State Aid?
casino-gambling
For a measure to constitute State aid, it must, among other things, be attributed to a decision of the state. When a State aid granting decision is made in contravention of the procedural rules of an organisation controlled by the state, the decision can still be attributed to the state, unless it can be shown that the state would have […]
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13. October 2014  |   State Aid Uncovered by Phedon Nicolaides

Advantage from High Entry Prices: Can It Be That Both the Commission and the General Court Have Misunderstood Simple Economics?
Athens casino
Price regulation can constitute State aid if the state forgoes potential revenue. However, for price regulation to constitute State aid it must satisfy all of the criteria in Article 107(1). Price regulation that affects all competitors proportionately does not confer an advantage and therefore does not constitute State aid. Introduction   On 11 September 2014, the General Court, in case […]
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6. October 2014  |   State Aid Uncovered by Phedon Nicolaides

i) Domestic Legal Problems Do Not Make the Recovery of Incompatible Aid Absolutely Impossible ii) Role of National Courts in Cases of Non-notified Aid
State Aid Blogs - German flag
The only defence for non-recovery of incompatible State aid is absolute impossibility. Obstacles in domestic legal proceedings may result in absolute impossibility, but Member States have an obligation to inform the Commission and national courts have to seek guidance from the Court of Justice of the European Union. Introduction   This article deals with two aspects of the recovery of […]
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30. September 2014  |   State Aid Uncovered by Phedon Nicolaides

The Jurisdictional Side of Selectivity
Lady Justice
A measure determined independently by similar public entities is not selective even if it varies across those entities. A measure is selective when the entity that has adopted it, applies it differently to undertakings which are within its jurisdiction and in a comparable situation. A public entity may differentiate its measures provided the differentiation can be objectively justified. Introduction   […]
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23. September 2014  |   State Aid Uncovered by Phedon Nicolaides

Restructuring Aid Approved on Condition that the Beneficiary Is Sold to Highest Bidder
corporate building
The Commission has wide discretion in assessing the compatibility of State aid with the internal market. Each case is assessed on its own merits and, therefore, the Commission is not bound by precedents or decisions on previous cases. Sale of shares held by public authorities may be required if divestment is necessary for long-term viability of aid beneficiary. Introduction   […]
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16. September 2014  |   State Aid Uncovered by Phedon Nicolaides

Simultaneity of Investments by Public and Private Investors is a Necessary but not Sufficient Condition for Public Investments to be Free of State Aid
coins
If a public authority guarantees a loan to a company that is in financial difficulty and charges a low premium, the whole loan, not just the difference between the market rate of premium and the rate actually charged, will be considered to be State aid. Simultaneous capital injection by public and private investors is not enough to eliminate State aid […]
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9. September 2014  |   State Aid Uncovered by Phedon Nicolaides

Not Surprisingly, Another Member State Fails to Prove Compliance with the Altmark Criteria
slaughterhouse
Maintaining capacity that is necessary for the provision of normal services cannot be classified as a service of general economic interest. State aid may not be granted towards the costs of cleaning up pollution caused by the aid recipient itself. State aid to a legal monopoly may still affect trade if there is competition for the monopoly rights or if […]
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2. September 2014  |   State Aid Uncovered by Phedon Nicolaides

Compensatory Payments Can be State Aid
Tractor on a field
Article 107(1) also applies to payments that offset the damage caused by natural disasters. It is irrelevant that the compensation is partial or that competitors did not suffer similar damage. A measure can be State aid even if it is partially or wholly funded by private resources. It is sufficient that the resources come under state control. A measure is […]
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