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.

Subscribe now!

24. May 2016  |   State Aid Uncovered by Phedon Nicolaides

Tax Exemptions Authorised by the Council of the EU
State Aid Blogs - m 8 1
State aid is an objective concept. When the Commission assesses a measure it has to examine its effects and cannot be bound by a decision of the Council. A beneficiary of State aid cannot entertain legitimate expectations simply because the Commission does not appear to object to the aid.   Introduction On 22 April 2016, the General Court rendered its judgment […]
read more
No Comments
18. May 2016  |   State Aid Uncovered by Phedon Nicolaides

PART II: Regional Development and i) Market Economy Operator Test ii) Services of General Economic Interest
State Aid Blogs - m 29 1
A market economy operator undertakes activities whose incremental revenue exceeds their incremental costs. A market economy operator ignores costs which are unaffected by those activities. A service of general economic interest has special characteristics that set it apart from other services with positive impact on the economy. Having a positive impact is not enough.   Part II: Public tasks and […]
read more
No Comments
10. May 2016  |   State Aid Uncovered by Phedon Nicolaides

PART I: Regional Development and i) Market Economy Operator Test, ii) Services of General Economic Interest
State Aid Blogs - m 28 1
A market economy operator undertakes activities whose incremental revenue exceeds their incremental costs. A market economy operator ignores costs which are unaffected by those activities. A service of general economic interest has special characteristics that set it apart from other services with positive impact on the economy. Having a positive impact is not enough.   Introduction National and regional authorities […]
read more
No Comments
3. May 2016  |   State Aid Uncovered by Phedon Nicolaides

Calculation of State Aid in Guarantees
State Aid Blogs - 21.11.State resources State control
State guarantees can be used to support loans for working capital. The amount of State aid in guarantees can be calculated to remain below the de minimis threshold of EUR 200,000.   Introduction With financial instruments being very much in vogue, there is much interest in the use of guarantees and loans as a means of granting State aid. Therefore, […]
read more
No Comments
2. May 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – May 2016
gavel
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 10/05/2016 Judgment in Case T-47/15 – Germany v Commission (General Court – Third Chamber)   […]
read more
No Comments
18. April 2016  |   State Aid Uncovered by Phedon Nicolaides

Who is Aided when a Bank is Resolved?
State Aid Blogs - m 30 1
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 […]
read more
No Comments
12. April 2016  |   State Aid Uncovered by Phedon Nicolaides

The Private Creditor Test: All Options Must be Taken into Account
State Aid Blogs - m 31 1
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, […]
read more
No Comments
5. April 2016  |   State Aid Uncovered by Phedon Nicolaides

Local Infrastructure
State Aid Blogs - StateAidHub blogpost47 Finance lexxion GBER SMEs
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 […]
read more
No Comments
4. April 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – April 2016
gavel
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 […]
read more
No Comments
30. March 2016  |   State Aid Uncovered by Phedon Nicolaides

The Treatment of Advisory and Information Services under State Aid Rules: The Case of the German Milk Levy
State Aid Blogs - m 32 1
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 […]
read more
No Comments
« Previous PageNext Page »

1. December 2014  |   State Aid Uncovered by Phedon Nicolaides

The First Application of the New GBER to Sport Infrastructure
trafic sign
Public funding of local sport infrastructure may constitute State aid. The granting of a concession contract for the construction and/or operation of the infrastructure may not exclude State aid for the concessionaire. Measures based on the new GBER have to satisfy both its general and specific provisions. The funding gap method can be used in the context of the GBER. […]
read more
No Comments
24. November 2014  |   State Aid Uncovered by Phedon Nicolaides

Land Transactions: Commercial Deals v Regulatory Acts
State Aid Blogs - Land Transactions Commercial Deals v Regulatory Acts
Regulation on land use or changes in such regulations do not constitute State aid. Administrative methods for calculating the value of public land do not necessarily prevent the granting of State aid if they do not reflect the evolution in market valuations.   IntroductionMany local authorities own land or regulate the use of land. They also sell or buy land. […]
read more
No Comments
18. November 2014  |   State Aid Uncovered by Phedon Nicolaides

Recovery of State Aid and Penalty for Failing to Recover Incompatible Aid
State Aid Blogs - Recovery of State Aid and Penalty for Failing to Recover Incompatible Aid
Extension of an existing aid measure results in the granting of new aid. Only conditions of absolute impossibility can justify non-recovery of incompatible aid. Member States have to exhaust all possible options to recover incompatible aid and, if necessary, have to force the closure of the recipient of the aid. IntroductionIn this article I examine two recent judgments both of […]
read more
No Comments
11. November 2014  |   State Aid Uncovered by Phedon Nicolaides

Reduction of Property Taxes and Electricity Tariffs
calculator
Relief from property tax is State aid even when the user of the property is involved in defence contracts. Providing cheaper electricity to a few manufacturers cannot be considered to be an appropriate measure for regional development. Introduction This article summarises several judgments which were delivered in October 2014. They concern a tax exemption in Spain and reduction of electricity […]
read more
No Comments
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 […]
read more
No Comments
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 […]
read more
No Comments
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 […]
read more
No Comments
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 […]
read more
No Comments
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 […]
read more
No Comments
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   […]
read more
No Comments
« Previous PageNext Page »

Subscribe to our newsletter for updates on legal developments, upcoming conferences, workshops, and publications in your areas of interest.

Newsletter: Subscribe now