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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23. July 2024  |   State Aid Uncovered by Phedon Nicolaides

Electricity Produced from High-Efficiency Combined Heat & Power Plants
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News: The Commission has approved a draft block exemption regulation declaring certain categories of aid in the rail, inland waterways and multimodal transport sector compatible with the internal market on the basis of Article 93. The draft regulation can be accessed at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202404539 Introduction The EU’s Energy Efficiency Directive [EED] [Directive 2012/27, as last amended in 2023 by Directive 2023/1791] […]
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18. July 2024  |   State Aid Uncovered by Phedon Nicolaides

Compliance with EU State Aid Rules
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On 8 July 2024, the European Court of Auditors published its Overview of the Assurance Framework and the Key Factors Contributing to Errors in 2014-2020 Cohesion Spending, (Review 3, 2024) The main findings of the ECA concerning compliance with State aid rules can be summarised in the following two tables. 1) Most frequent errors [2018-22] (% of all errors) and […]
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16. July 2024  |   State Aid Uncovered by Phedon Nicolaides

Repayment of Incompatible State Aid Is Inescapable
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Introduction Companies may pay taxes in several Member States of the EU or in third countries. This fact by itself has no bearing in an assessment of whether preferential tax treatment in a Member State may constitute State aid. However, it becomes relevant when incompatible aid is to be recovered and the granting Member State has to determine the amount […]
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9. July 2024  |   State Aid Uncovered by Phedon Nicolaides

The Commission May Authorise a Public Measure only if it Constitutes State Aid
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Introduction Sometimes the Commission is uncertain whether a public measure constitutes State aid. Nonetheless, it decides not raise objections on the grounds that if the measure constituted State aid, it would be compatible with the internal market. One can understand why the Commission follows this approach. If it is not sure whether a measure falls outside the scope of Article […]
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2. July 2024  |   State Aid Uncovered by Phedon Nicolaides

Green Energy Certificates
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Introduction Certificates that confirm that an undertaking has bought a certain amount of electricity from renewable sources do not normally involve State aid because they are not traded. However, when they are tradeable and are granted by a public authority for free or for a fee that falls below their market value, they normally involve State aid as they confer […]
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25. June 2024  |   by Phedon Nicolaides

Aid Measures with Limited Beneficiaries
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Introduction During the covid-19 pandemic Member States granted State aid to undertakings they considered important for their economies or for maintaining their connectivity with the rest of the world. Ryanair appealed against multiple Commission decisions authorising that aid. Ryanair succeeded in some of its challenges on technical issues. It lost all other cases on issues of principle. On 6 June […]
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18. June 2024  |   State Aid Uncovered by Phedon Nicolaides

Obligations Imposed by the State Cannot Justify Tax Exemptions
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Introduction Over the past decade or so, the European Commission has found that multiple port operators have benefitted from State aid in the form of tax exemptions. This aid was in all cases found to be incompatible with the internal market, despite the claims of the port operators that the state had imposed on the public service obligations or that […]
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11. June 2024  |   State Aid Uncovered by Phedon Nicolaides

Member States May Grant State Aid to Single Beneficiaries
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Introduction The European Court of Justice confirmed, once more, on 30 May 2024, in case C-353/21 P, Ryanair v Commission, that Member States do not have to grant State aid to all undertakings that may be affected by a serious economic disturbance such as a pandemic.2 This is because Member States do not have unlimited resources and because they may […]
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4. June 2024  |   State Aid Uncovered by Phedon Nicolaides

Special Tax Treatment for a Major Infrastructure Project
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Introduction In April 2013, the Commission received a complaint alleging that State aid had been granted to the Oresund fixed link. The link is a major transport infrastructure project consisting of a bridge, an artificial island and tunnels between Denmark and Sweden. In October 2014, the Commission concluded that the public funding of the hinterland road and rail connections was […]
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28. May 2024  |   State Aid Uncovered by Phedon Nicolaides

A Research Project Based on Collaboration with a Research Organisation
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Introduction After pre-notification contacts, Croatia notified, in March 2023, State aid amounting to a EUR 179.5 million for an R&D project regarding the development of an innovative autonomous electric vehicle [a “robo-taxi”]. The aid, in the form of a grant, was to be provided to Project 3 Mobility LLC [P3M]. The Commission approved it in decision SA.101759.1 The aid beneficiary, […]
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16. July 2024  |   State Aid Uncovered by Phedon Nicolaides

Repayment of Incompatible State Aid Is Inescapable
State Aid Blogs - State Aid Uncovered photos 2
Introduction Companies may pay taxes in several Member States of the EU or in third countries. This fact by itself has no bearing in an assessment of whether preferential tax treatment in a Member State may constitute State aid. However, it becomes relevant when incompatible aid is to be recovered and the granting Member State has to determine the amount […]
read more
No Comments
9. July 2024  |   State Aid Uncovered by Phedon Nicolaides

The Commission May Authorise a Public Measure only if it Constitutes State Aid
State Aid Blogs - State Aid Uncovered photos 1 1
Introduction Sometimes the Commission is uncertain whether a public measure constitutes State aid. Nonetheless, it decides not raise objections on the grounds that if the measure constituted State aid, it would be compatible with the internal market. One can understand why the Commission follows this approach. If it is not sure whether a measure falls outside the scope of Article […]
read more
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2. July 2024  |   State Aid Uncovered by Phedon Nicolaides

Green Energy Certificates
State Aid Blogs - State Aid Uncovered photos 3
Introduction Certificates that confirm that an undertaking has bought a certain amount of electricity from renewable sources do not normally involve State aid because they are not traded. However, when they are tradeable and are granted by a public authority for free or for a fee that falls below their market value, they normally involve State aid as they confer […]
read more
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18. June 2024  |   State Aid Uncovered by Phedon Nicolaides

Obligations Imposed by the State Cannot Justify Tax Exemptions
State Aid Blogs - State Aid Uncovered photos 18
Introduction Over the past decade or so, the European Commission has found that multiple port operators have benefitted from State aid in the form of tax exemptions. This aid was in all cases found to be incompatible with the internal market, despite the claims of the port operators that the state had imposed on the public service obligations or that […]
read more
No Comments
11. June 2024  |   State Aid Uncovered by Phedon Nicolaides

Member States May Grant State Aid to Single Beneficiaries
State Aid Blogs - State Aid Uncovered photos 17
Introduction The European Court of Justice confirmed, once more, on 30 May 2024, in case C-353/21 P, Ryanair v Commission, that Member States do not have to grant State aid to all undertakings that may be affected by a serious economic disturbance such as a pandemic.2 This is because Member States do not have unlimited resources and because they may […]
read more
No Comments
4. June 2024  |   State Aid Uncovered by Phedon Nicolaides

Special Tax Treatment for a Major Infrastructure Project
State Aid Blogs - State Aid Uncovered photos 16
Introduction In April 2013, the Commission received a complaint alleging that State aid had been granted to the Oresund fixed link. The link is a major transport infrastructure project consisting of a bridge, an artificial island and tunnels between Denmark and Sweden. In October 2014, the Commission concluded that the public funding of the hinterland road and rail connections was […]
read more
No Comments
28. May 2024  |   State Aid Uncovered by Phedon Nicolaides

A Research Project Based on Collaboration with a Research Organisation
State Aid Blogs - State Aid Uncovered photos 15
Introduction After pre-notification contacts, Croatia notified, in March 2023, State aid amounting to a EUR 179.5 million for an R&D project regarding the development of an innovative autonomous electric vehicle [a “robo-taxi”]. The aid, in the form of a grant, was to be provided to Project 3 Mobility LLC [P3M]. The Commission approved it in decision SA.101759.1 The aid beneficiary, […]
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21. May 2024  |   State Aid Uncovered by Phedon Nicolaides

Authorisation of State Aid after the Start of a Project
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Introduction In June 2021, the European Commission, in decision SA.55526, approved an amount of EUR 167 million of State aid for the construction and operation of a liquefied natural gas [LNG] terminal close to Alexandroupolis in northern Greece. In December 2022, Greece notified a measure involving additional State aid of EUR 106 million for the same project. The Commission authorised […]
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14. May 2024  |   State Aid Uncovered by Phedon Nicolaides

Restructuring State Aid
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Introduction State aid to failing undertakings is the most distortionary form of public subsidies. They prevent the market exit of inefficient companies. For this reason, State aid for rescue or restructuring of undertakings in difficulty must always be notified to the Commission which examines each case very carefully and allows this kind of aid only when, among other things, the […]
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7. May 2024  |   State Aid Uncovered by Phedon Nicolaides

Public Procurement and State Aid
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Introduction A faulty public procurement procedure or the use of discriminatory selection criteria can confer an advantage on the chosen undertaking that may constitute an advantage in the meaning of Article 107(1) TFEU. The result will be infringement of both public procurement rules and State aid rules. A recent Commission decision, SA.47650, is instructive on how Member States should design […]
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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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11. November 2015  |   Guest State Aid Blog by Dimitrios Kyriazis

Summary of Lexxion Seminar: State aid for Tax Measures on 26-27 October 2015, Brussels
Lexxion Seminar
The following is a summary of the main points that were presented and the issues that were discussed in the seminar on State aid in Tax Measures that was held in Brussels on 26-27 October 2015. The summary has been prepared for information purposes only and it is not meant to be a precise record of the proceedings of the […]
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5. November 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – November 2015
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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.   Wednesday 11/11/2015 Judgment in Case C-505/14 – Klausner Holz Niedersachsen (Court of Justice – Second Chamber) Thursday 12/11/2015 Judgment in […]
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22. October 2015  |   Guest State Aid Blog by Emanuela Matei

A new misnomer in State aid law: single economic unit with separate legal personality (C 357/14 P, Dunamenti Erőmű/Commission)
electricity grid cables
The following blog post is a 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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12. October 2015  |   Guest State Aid Blog by Lexxion Publisher

Courts’s Diary – October 2015
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Any comments on #Stateaid? Get in touch: Stateaidhub[at]lexxion.eu   Thursday 01/10/2015 Judgment in Case C-357/14 P – Electrabel and Dunamenti Erőmű v Commission (Court of Justice – Third Chamber)   Tuesday 06/10/2015 Judgment in Case C-303/13 P – Andersen v Commission (Court of Justice – Grand Chamber)   Thursday 08/10/2015 Hearing in Joined Cases T-479/11 & T-157/12 – France v Commission, […]
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24. September 2015  |   Guest State Aid Blog by Gian Marco Galletti

How Reasonable The Private Investor May Be Assumed To Be? Corsica Ferries France
steel construction
The following article summary is a contributory piece by Gian Marco Galletti. The full piece was published in the Common Market Law Review. Galletti is working as a researcher at the Dickson Poon School of Law since 2013. He is currently working on a PhD in European law under the supervision of Prof. Andrea Biondi. He holds an LLB with […]
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1. September 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – September 2015
gavel
Any comments on #Stateaid? Get in touch: Stateaidhub[at]lexxion.eu   Thursday 03/09/2015   Judgment in Case C-89/14 – A2A (Court of Justice – Fifth Chamber)Tuesday 08/09/2015 Hearing in Case T-103/14 – Frucona Košice v Commission (General Court – Second Chamber)Thursday 17/09/2015 Judgment in Case C-33/14 P – Mory and Others v Commission (Court of Justice – Third Chamber)   Friday 18/09/2015 Judgment […]
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2. July 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – July 2015
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Any comments on #Stateaid? Get in touch: Stateaidhub[at]lexxion.de Wednesday 01/07/2015 Opinion in Case C-357/14 P Dunamenti Erőmű v Commission (Court of Justice – Third Chamber)   Thursday 02/07/2015 Judgment in Joined cases T-425/04 RENV France v Commission, T-444/04 RENV Orange v Commission (General Court – Sixth Chamber, Extended Composition)   Wednesday 08/07/2015 Hearing in Case T-287/11 Heitkamp BauHolding v Commission (General Court – Ninth […]
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17. June 2015  |   Guest State Aid Blog by Lexxion Publisher

EStAL Best Reviewer Award 2014/2015
Last week our 13th Experts’ Forum on New Developments in European State Aid Law took place. From 10th to 12th June 2015 a group of enthusiastic professionals interested in State Aid gathered at the Club of the University Foundation in Brussels to discuss the most recent issues on the topic. In the realm of this conference, we were proud to announce our […]
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3. June 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – June 2015
gavel
Any comments on #Stateaid? Get in touch: Stateaidhub[at]lexxion.eu Thursday 04/06/2015 Judgment in Case C-15/14 P Commission v MOL (Court of Justice – First Chamber)   Tuesday 09/06/2015 Hearing in Case T-515/13 Spain v Commission (General Court – Seventh Chamber)   Wednesday 10/06/2015 Hearing in Case C-367/14 Commission v Italy (Court of Justice – Third Chamber) Hearing in Case T-719/13 Lico Leasing and Pequeños y […]
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