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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State Aid Uncovered ×

9. February 2015  |   State Aid Uncovered by Phedon Nicolaides

Restructuring and the Market Economy Investor Principle
State Aid Blogs - m 20 2
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 […]
read more
No Comments
3. February 2015  |   State Aid Uncovered by Phedon Nicolaides

i) Environmental Harm Does Not Make State Aid Incompatible with the Internal Market ii) the Market Economy Investor Principle Applied to Monopolies
State Aid Blogs - m 21 2
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 […]
read more
No Comments
26. January 2015  |   State Aid Uncovered by Phedon Nicolaides

Non-Commercial Public Infrastructure: Another Judgment, More Questions
State Aid Blogs - m 23 2
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 […]
read more
3 Comments
19. January 2015  |   State Aid Uncovered by Phedon Nicolaides

Use of Publicly-Funded Infrastructure without State Aid
State Aid Blogs - m 22 2
Public funding of infrastructure which is open to any user does not constitute State aid. Public funding for the upgrading/extension of infrastructure in view of expected increase in the number of users is not State aid as long as it is not designed for the specific needs of certain users.Fees charged to users of publicly-funded infrastructure must cover incremental costs […]
read more
4 Comments
12. January 2015  |   State Aid Uncovered by Phedon Nicolaides

“Good” Procedures Make “Good” State Aid: Ex Ante Conditionality for Effective Application of EU State Aid Rules
State Aid Blogs - 21.11.State resources State control
Structural fund rules for the period 2014-2020 define ex ante conditionalities that have to be satisfied by Managing Authorities that use EU funds to grant State aid. The ex ante conditionalities aim to strengthen the administrative capacity of Managing Authorities to grant State aid correctly. The European Commission has issued guidance on arrangements that can lead to improved administrative capacity. […]
read more
No Comments
5. January 2015  |   State Aid Uncovered by Phedon Nicolaides

Tax Measures with Specific Objectives Can still Be General
State Aid Blogs - m 24 2
A tax measure that applies to certain transactions is not selective if it does not preclude any company or type of asset. Conditions for the application of a tax measure may be justified by the logic of the tax system. The Commission may not use Article 107(3) to assess the compatibility with the internal market of a tax measure that […]
read more
No Comments
29. December 2014  |   State Aid Uncovered by Phedon Nicolaides

Another Measure that Cannot Be Justified by the Logic of the Tax System
airplanes on the airport
The granting of a tax exception is often found to constitute State aid. But the non-levying of a tax may also fall within the scope of Article 107(1). Competitors have more rights when the Commission does not open the formal investigation procedure.   IntroductionOn 25 November 2014, the Court of Justice, in case T-512/11, Ryanair v European Commission, annulled Commission […]
read more
No Comments
23. December 2014  |   State Aid Uncovered by Phedon Nicolaides

An Important Project of Common European Interest
State Aid Blogs - An Important Project of Common European Interest
Infrastructure projects which are economic in nature are subject to State aid scrutiny regardless of their importance. However, public funding of transport networks which are open to all users does not constitute State aid. Introduction State aid approval of important projects of common European interest is very rare. The joint Commission decisions SA.36558 and SA.38371 [Denmark] and SA.36662 [Sweden] concerning the […]
read more
No Comments
15. December 2014  |   State Aid Uncovered by Phedon Nicolaides

Application of the Market Economy Investor Principle to a Company Processing Agricultural Products
State Aid Blogs - Application of the Market Economy Investor Principle to a Company Processing Agricultural Products
When a public entity injects fresh capital in a company in which it is already a shareholder, the new capital does not constitute State aid when it satisfies three conditions: i) all shareholders contribute in proportion to the shares they own, ii) the private participation is simultaneous and iii) the private participation is economically significant. Introduction   In this article […]
read more
No Comments
9. December 2014  |   State Aid Uncovered by Phedon Nicolaides

A Surprising Interpretation of the Concept of Selectivity
State Aid Blogs - A Surprising Interpretation of the Concept of Selectivity
Tax measures are selective when they constitute an exception or deviation from the normal or common system of taxation. In addition, the exception must be open only to a pre-defined category of undertakings. IntroductionOften, the decisive element in whether a tax measure constitutes State aid is the existence of selectivity. On 7 November 2014, the General Court ruled on two […]
read more
No Comments
« Previous PageNext Page »

State Aid Uncovered ×

9. February 2015  |   State Aid Uncovered by Phedon Nicolaides

Restructuring and the Market Economy Investor Principle
State Aid Blogs - m 20 2
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 […]
read more
No Comments
3. February 2015  |   State Aid Uncovered by Phedon Nicolaides

i) Environmental Harm Does Not Make State Aid Incompatible with the Internal Market ii) the Market Economy Investor Principle Applied to Monopolies
State Aid Blogs - m 21 2
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 […]
read more
No Comments
26. January 2015  |   State Aid Uncovered by Phedon Nicolaides

Non-Commercial Public Infrastructure: Another Judgment, More Questions
State Aid Blogs - m 23 2
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 […]
read more
3 Comments
19. January 2015  |   State Aid Uncovered by Phedon Nicolaides

Use of Publicly-Funded Infrastructure without State Aid
State Aid Blogs - m 22 2
Public funding of infrastructure which is open to any user does not constitute State aid. Public funding for the upgrading/extension of infrastructure in view of expected increase in the number of users is not State aid as long as it is not designed for the specific needs of certain users.Fees charged to users of publicly-funded infrastructure must cover incremental costs […]
read more
4 Comments
12. January 2015  |   State Aid Uncovered by Phedon Nicolaides

“Good” Procedures Make “Good” State Aid: Ex Ante Conditionality for Effective Application of EU State Aid Rules
State Aid Blogs - 21.11.State resources State control
Structural fund rules for the period 2014-2020 define ex ante conditionalities that have to be satisfied by Managing Authorities that use EU funds to grant State aid. The ex ante conditionalities aim to strengthen the administrative capacity of Managing Authorities to grant State aid correctly. The European Commission has issued guidance on arrangements that can lead to improved administrative capacity. […]
read more
No Comments
5. January 2015  |   State Aid Uncovered by Phedon Nicolaides

Tax Measures with Specific Objectives Can still Be General
State Aid Blogs - m 24 2
A tax measure that applies to certain transactions is not selective if it does not preclude any company or type of asset. Conditions for the application of a tax measure may be justified by the logic of the tax system. The Commission may not use Article 107(3) to assess the compatibility with the internal market of a tax measure that […]
read more
No Comments
29. December 2014  |   State Aid Uncovered by Phedon Nicolaides

Another Measure that Cannot Be Justified by the Logic of the Tax System
airplanes on the airport
The granting of a tax exception is often found to constitute State aid. But the non-levying of a tax may also fall within the scope of Article 107(1). Competitors have more rights when the Commission does not open the formal investigation procedure.   IntroductionOn 25 November 2014, the Court of Justice, in case T-512/11, Ryanair v European Commission, annulled Commission […]
read more
No Comments
23. December 2014  |   State Aid Uncovered by Phedon Nicolaides

An Important Project of Common European Interest
State Aid Blogs - An Important Project of Common European Interest
Infrastructure projects which are economic in nature are subject to State aid scrutiny regardless of their importance. However, public funding of transport networks which are open to all users does not constitute State aid. Introduction State aid approval of important projects of common European interest is very rare. The joint Commission decisions SA.36558 and SA.38371 [Denmark] and SA.36662 [Sweden] concerning the […]
read more
No Comments
15. December 2014  |   State Aid Uncovered by Phedon Nicolaides

Application of the Market Economy Investor Principle to a Company Processing Agricultural Products
State Aid Blogs - Application of the Market Economy Investor Principle to a Company Processing Agricultural Products
When a public entity injects fresh capital in a company in which it is already a shareholder, the new capital does not constitute State aid when it satisfies three conditions: i) all shareholders contribute in proportion to the shares they own, ii) the private participation is simultaneous and iii) the private participation is economically significant. Introduction   In this article […]
read more
No Comments
9. December 2014  |   State Aid Uncovered by Phedon Nicolaides

A Surprising Interpretation of the Concept of Selectivity
State Aid Blogs - A Surprising Interpretation of the Concept of Selectivity
Tax measures are selective when they constitute an exception or deviation from the normal or common system of taxation. In addition, the exception must be open only to a pre-defined category of undertakings. IntroductionOften, the decisive element in whether a tax measure constitutes State aid is the existence of selectivity. On 7 November 2014, the General Court ruled on two […]
read more
No Comments
« Previous PageNext Page »

State Aid Uncovered ×

9. February 2015  |   State Aid Uncovered by Phedon Nicolaides

Restructuring and the Market Economy Investor Principle
State Aid Blogs - m 20 2
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 […]
read more
No Comments
3. February 2015  |   State Aid Uncovered by Phedon Nicolaides

i) Environmental Harm Does Not Make State Aid Incompatible with the Internal Market ii) the Market Economy Investor Principle Applied to Monopolies
State Aid Blogs - m 21 2
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 […]
read more
No Comments
26. January 2015  |   State Aid Uncovered by Phedon Nicolaides

Non-Commercial Public Infrastructure: Another Judgment, More Questions
State Aid Blogs - m 23 2
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 […]
read more
3 Comments
19. January 2015  |   State Aid Uncovered by Phedon Nicolaides

Use of Publicly-Funded Infrastructure without State Aid
State Aid Blogs - m 22 2
Public funding of infrastructure which is open to any user does not constitute State aid. Public funding for the upgrading/extension of infrastructure in view of expected increase in the number of users is not State aid as long as it is not designed for the specific needs of certain users.Fees charged to users of publicly-funded infrastructure must cover incremental costs […]
read more
4 Comments
12. January 2015  |   State Aid Uncovered by Phedon Nicolaides

“Good” Procedures Make “Good” State Aid: Ex Ante Conditionality for Effective Application of EU State Aid Rules
State Aid Blogs - 21.11.State resources State control
Structural fund rules for the period 2014-2020 define ex ante conditionalities that have to be satisfied by Managing Authorities that use EU funds to grant State aid. The ex ante conditionalities aim to strengthen the administrative capacity of Managing Authorities to grant State aid correctly. The European Commission has issued guidance on arrangements that can lead to improved administrative capacity. […]
read more
No Comments
5. January 2015  |   State Aid Uncovered by Phedon Nicolaides

Tax Measures with Specific Objectives Can still Be General
State Aid Blogs - m 24 2
A tax measure that applies to certain transactions is not selective if it does not preclude any company or type of asset. Conditions for the application of a tax measure may be justified by the logic of the tax system. The Commission may not use Article 107(3) to assess the compatibility with the internal market of a tax measure that […]
read more
No Comments
29. December 2014  |   State Aid Uncovered by Phedon Nicolaides

Another Measure that Cannot Be Justified by the Logic of the Tax System
airplanes on the airport
The granting of a tax exception is often found to constitute State aid. But the non-levying of a tax may also fall within the scope of Article 107(1). Competitors have more rights when the Commission does not open the formal investigation procedure.   IntroductionOn 25 November 2014, the Court of Justice, in case T-512/11, Ryanair v European Commission, annulled Commission […]
read more
No Comments
23. December 2014  |   State Aid Uncovered by Phedon Nicolaides

An Important Project of Common European Interest
State Aid Blogs - An Important Project of Common European Interest
Infrastructure projects which are economic in nature are subject to State aid scrutiny regardless of their importance. However, public funding of transport networks which are open to all users does not constitute State aid. Introduction State aid approval of important projects of common European interest is very rare. The joint Commission decisions SA.36558 and SA.38371 [Denmark] and SA.36662 [Sweden] concerning the […]
read more
No Comments
15. December 2014  |   State Aid Uncovered by Phedon Nicolaides

Application of the Market Economy Investor Principle to a Company Processing Agricultural Products
State Aid Blogs - Application of the Market Economy Investor Principle to a Company Processing Agricultural Products
When a public entity injects fresh capital in a company in which it is already a shareholder, the new capital does not constitute State aid when it satisfies three conditions: i) all shareholders contribute in proportion to the shares they own, ii) the private participation is simultaneous and iii) the private participation is economically significant. Introduction   In this article […]
read more
No Comments
9. December 2014  |   State Aid Uncovered by Phedon Nicolaides

A Surprising Interpretation of the Concept of Selectivity
State Aid Blogs - A Surprising Interpretation of the Concept of Selectivity
Tax measures are selective when they constitute an exception or deviation from the normal or common system of taxation. In addition, the exception must be open only to a pre-defined category of undertakings. IntroductionOften, the decisive element in whether a tax measure constitutes State aid is the existence of selectivity. On 7 November 2014, the General Court ruled on two […]
read more
No Comments
« Previous PageNext Page »

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