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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5. October 2016  |   Guest State Aid Blog by Erika Szyszczak

Article 263(4) TFEU: Third Party Challenges to State Aid Decisions
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We are happy to welcome back Prof Erika Szyszczak on the State Aid Blog today. She is Professor of Law and Fellow of the UK Trade Policy Observatory at University of Sussex and practising barrister and ADR mediator at Littleton Chambers, Temple, London. Today she shares her views on two cases that shed new light on third party rights to […]
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1. October 2016  |   by Lexxion Publisher

Court’s Diary – October 2016
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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.   Tuesday 11/10/2016 Judgment in Case T-167/14 – Søndagsavisen v Commission (General Court – First Chamber) Wednesday 12/10/2016 Judgment […]
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27. September 2016  |   State Aid Uncovered by Phedon Nicolaides

Regional Aid for a Large Project subject to Individual Notification under the GBER
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In the meaning of regional aid rules, diversification in a “new activity” is not the same as diversification in a “new product”. A “new process innovation” must be different, in the sense of being distinct from an existing process, must be substantial, in the sense that it covers the whole production process and must be new, in the sense that […]
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20. September 2016  |   State Aid Uncovered by Phedon Nicolaides

Non-State Aid Assistance to Depositors and Customers of Banks
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Public assistance to borrowers who cannot repay their loans does not constitute State aid if the beneficiaries are individuals. Public assistance to undertakings which cannot repay their loans does not constitute State aid if the amount of aid does not exceed the de minimis threshold. Any public funding of deposits which are transferred from ailing to healthy banks is not […]
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14. September 2016  |   Guest State Aid Blog by Michał Bernat

Polish Green Certificates Held by the Commission to Be Compatible State Aid: a Curious Story Comes to an End
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We are happy to welcome Dr Michał Bernat on the State Aid Blog today. He is a legal and tax adviser and State aid expert at the Dentons offices in Warsaw. Today he shares his insights on a decision in a case involving Polish green certificates issued to producers of energy from renewable energy sources. Read on to learn more. […]
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13. September 2016  |   State Aid Uncovered by Phedon Nicolaides

Burden-Sharing and State Aid to Banks
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Creditors must contribute to the recovery of banks before State aid is granted. Burden-sharing by creditors in the recovery of banks does not deprive them of their right to property.   Introduction On 19 July 2016, the Court of Justice rendered its judgment in case C‑526/14, Tadej Kotnik and others v Državni zbor Republike Slovenije.[1] The judgment was in response to a […]
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6. September 2016  |   State Aid Uncovered by Phedon Nicolaides

Commission Notice on the Notion of State Aid: Part III – Trade Effect, Distortion of Competition and Infrastructure
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This is the third and last article in a series of three that reviews the Commission’s Notice on the Notion of State Aid.* Last week’s article analysed the concepts of advantage and selectivity. This week the focus is on the last two constituent elements of the notion of State aid: affectation of cross-border trade and distortion of competition. This article […]
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1. September 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – September 2016
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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.   Wednesday 14/09/2016 Judgment in Case T-57/15 – Trajektna luka Split v Commission (General Court – Seventh Chamber)   […]
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30. August 2016  |   State Aid Uncovered by Phedon Nicolaides

Commission Notice on the Notion of State Aid: Part II – Advantage and Selectivity
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This is the second article in a series of three that reviews the Commission’s Notice on the Notion of State Aid.* Last week’s article focused on the concepts of economic activity and state resources.** Next week’s article will conclude with a presentation of the conditions under which trade is affected and competition distorted and an analysis of the application of […]
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23. August 2016  |   State Aid Uncovered by Phedon Nicolaides

Commission Notice on the Notion of State Aid: Part I – Economic Activities & State Resources
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The Notice provides a thorough review of the case law and the decisional practice of the Commission.   Introduction After more than two years of deliberations, the Commission Notice on the Notion of State Aid was published in the Official Journal on 19 July 2016.[1] The Notice presents “the Commission’s understanding of Article 107(1) of the Treaty, as interpreted by the […]
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29. June 2015  |   State Aid Uncovered by Phedon Nicolaides

Levying of Charges to Maintain Equal Treatment Is Not Necessarily Selective
State Aid Blogs - SAH blogpost37 Hinkley Point C UK 2017
The standard of proof of whether a measure is selective depends on whether that measure is a scheme or a grant of individual aid. Measures providing for exemption are by definition selective. Measures that impose additional charges for the purpose of maintaining equality between operators are not necessarily selective even if the responsible authorities retain a degree of discretion in […]
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22. June 2015  |   State Aid Uncovered by Phedon Nicolaides

Ex post Monitoring of a Risk Capital Fund
State Aid Blogs - 10.10. Stateaid deminimis calculator
Ex post monitoring will be pursued vigorously by the Commission. Irregularities in the implementation of State aid measures may lead to the opening of the formal investigation procedure.   Introduction This article examines Commission decision concerning a UK risk capital scheme entitled Enterprise Capital Funds [SA.15373 and SA.33186]. The decision is the outcome of an investigation that was initiated after […]
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15. June 2015  |   State Aid Uncovered by Phedon Nicolaides

Germany Scores a Hat-trick of Non-Aid Measures!
State Aid Blogs - StateAidHub blogpost33 trade
At the end of April, the European Commission announced that seven measures were found not to constitute State aid because they could not be reasonably expected to affect cross-border trade. The finding of no affectation of trade is rare. That seven measures were thought not capable of affecting trade is very exceptional. Perhaps the Commission is trying to signal to […]
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8. June 2015  |   State Aid Uncovered by Phedon Nicolaides

The Perils of Ex Post Monitoring
State Aid Blogs - StateAidHub blogpost4 2019 lexxion pari passu chemistry Investment
Greater use of the new General Block Exemption Regulation means fewer State aid measures subject to notification and ex ante assessment by the Commission. However, less ex ante control will be followed by more ex post control. Member States should be prepared for wider and more intrusive ex post monitoring.   Introduction One of the cornerstones of the State Aid […]
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1. June 2015  |   State Aid Uncovered by Phedon Nicolaides

How Injection of Public Capital Can Be Free of State Aid
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Injection of public capital in an undertaking conforms with the market economy investor principle when: The public investment is equal and concomitant to private investment. The public investment has economic significance and is not followed by disengagement of private investors. The recipient undertaking is in a healthy financial position. The recipient undertaking compares favourably to its peers. The investment is […]
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27. May 2015  |   State Aid Uncovered by Phedon Nicolaides

Restructuring Aid, Recovery of Aid and Procedural Rights
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Restructuring aid can finance any part of a restructuring plan. Compensatory measures initiated before the granting of restructuring aid can be taken into account as long as they are linked to the restructuring itself. Member States have to comply with the conditions defined in Commission decisions. They cannot justify non-compliance on the grounds of domestic institutional difficulties. Regional authorities that […]
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19. May 2015  |   State Aid Uncovered by Phedon Nicolaides

Public Service Obligations: A Few More Mistakes that Can Be Avoided
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Even efficient companies will fail the 4th Altmark criterion if their costs are not proven to be comparable to those of a typical and well-equipped undertaking. Public funding of infrastructure is not State aid to users only if access is open to all. Public funding for training to raise social awareness is still State aid if it relieves companies of […]
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12. May 2015  |   State Aid Uncovered by Phedon Nicolaides

A National Measure that Does Not Apply at Regional Level Is Not Necessarily Selective
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Where there is a constitutional division of tax competences, different authorities may tax similar activities at different rates.   Introduction This article examines Commission decision SA.34469 on differential tax rates for online and land-based gambling in Spain.[1] In the Spanish political system, regions that have the status of Autonomous Communities have powers of taxation. The issue at hand was which authority […]
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6. May 2015  |   State Aid Uncovered by Phedon Nicolaides

A Market Operator, unlike a Public Authority, Does not Have to Treat all Customers Equally
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In managing infrastructure, a public authority acts as a private operator when it seeks a reasonable return on its investment and also takes into account the alternative of not operating the infrastructure. The manager of an infrastructural project may charge different fees to different users to optimise usage and increase revenue.   Introduction This article reviews Commission decision 2015/506 concerning […]
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29. April 2015  |   State Aid Uncovered by Phedon Nicolaides

Do Free but Compulsory Tests Confer a Selective Advantage?
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State aid rules apply to measures which are either harmonised at EU level or are left to the discretion of Member States. The protection of public health is no sufficient reason for removing a public measure from the scope of Article 107(1). The fact that undertakings are obliged by law to comply with certain tests does not justify the subsidisation […]
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