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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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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22. September 2015  |   State Aid Uncovered by Phedon Nicolaides

The Pricing of Access to an Important Project of Common European Interest
State Aid Blogs - m 7 2
Infrastructure that is commercially exploited [e.g. charging of tolls] is an economic activity. Infrastructure that is freely available to users is not economic activity. Access fees or tolls may be regulated. State aid must be necessary and proportional even if access fees are regulated.   Introduction This article examines Commission decision SA.39078 concerning the Fehmarn belt fixed link in Denmark.[1] This […]
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15. September 2015  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Public Service Obligations and Compensation for Damage
State Aid Blogs - m 6 3
Compensation for public service obligations is compatible with the internal market when, at minimum, a PSO is well defined in an entrustment constituting an official act of a public authority, the revenues and costs of the PSO are clearly identified and separated from other commercial activities and the compensation does not exceed the net extra costs of the PSO. Compensation […]
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8. September 2015  |   State Aid Uncovered by Phedon Nicolaides

Services of General Economic Interest: How to Compensate and Induce more Efficiency
State Aid Blogs - m 5 3
Even traditional monopolists, like postal operators, have to comply with the rules on compensation for the extra costs of public service obligations. SGEI providers can be compensated in a way that induces them to become more efficient.   Introduction This article examines case Commission decision SA.38788 concerning compensation for the UK Post Office Ltd [POL] in the period 2015-18.[1] It is […]
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2. September 2015  |   State Aid Uncovered by Phedon Nicolaides

When Do Public Pronouncements Confer an Advantage to Undertakings?
State Aid Blogs - m 4 3
Public pronouncements can confer an advantage if they are sufficiently precise and clearly commit a public authority to support an undertaking.   Introduction[1] Politicians often claim that they would never allow important national companies to go bust. Occasionally, such claims appear to sway market sentiment in favour of those companies. Private investors are heartened by the avowed support of the […]
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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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25. August 2015  |   State Aid Uncovered by Phedon Nicolaides

The Challenge of Calculating a Market Price
State Aid Blogs - m 10 2
The market price of land or buildings can be determined via auction, expert valuation or other appropriate methods.   Introduction On 16 July 2015, the Court of Justice delivered its judgment in case C‑39/14, BVVG Bodenverwertungs- und -verwaltungs GmbH [BVVG] v Landkreis Jerichower Land in Germany.[1] The judgment was in response to a request for a preliminary ruling concerning a dispute […]
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18. August 2015  |   State Aid Uncovered by Phedon Nicolaides

Why Do some Member States Offer so much Fiscal Aid?
State Aid Blogs - StateaidHub blogpost11 Lexxion 2019 Tax Commission EU judgement
Member States differ significantly in their propensity to grant fiscal aid.   Introduction Interest in fiscal aid has been rekindled recently by two unrelated events. First, the Commission opened a number of investigations on the alleged special tax treatment accorded to multinational companies such as Apple and Starbucks. These investigations are believed to be almost completed and the Commission is […]
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11. August 2015  |   State Aid Uncovered by Phedon Nicolaides

Ex post Evaluation of State Aid Measures
State Aid Blogs - 21.11.State resources State control
Ex post evaluation is not just a “pillar” of State Aid Modernisation. It is also an indispensable tool for understanding the impact and effectiveness of State aid. State aid modernisation and decentralisation   One of the pillars of the Commission’s State Aid Modernisation initiative is the decentralisation of responsibility for the implementation of State aid measures. The decentralisation works by […]
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4. August 2015  |   State Aid Uncovered by Phedon Nicolaides

The Use and Abuse of De Minimis Aid & State Resources
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Individual awards of de minimis aid must remain below the relevant threshold as well as the sum of all individual awards in any three-year period. Aid measures which are funded by beneficiaries themselves are unlikely to constitute State aid.   Introduction This article reviews two cases that, among other things, deal with the use and abuse of de minimis aid […]
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22. April 2014  |   State Aid Uncovered by Phedon Nicolaides

Two Judgments: a) Unlimited State Guarantees and b) The Discretion of the Commission in Restructuring Measures
gavel
Unlimited state guarantees are never compatible with the internal market. The existence of an unlimited guarantee and its benefits can be inferred from the relevant legal context in which the state assumes certain obligations towards creditors. The Commission may impose both structural and behavioural remedies on recipients of restructuring aid These remedies may cover sectors other than the main sector in which […]
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14. April 2014  |   State Aid Uncovered by Phedon Nicolaides

The Importance of a Correct Framing of the Private Creditor and Private Investor Tests
people in backlight
A public authority acting as private creditor must exhaust all legally available means of recovering money owed to it. A private creditor may agree to an amicable arrangement – depending on the complexity and duration of legal proceedings, the value of the collateral it holds and the chances of long-term viability of the debtor – if it results in repayment of […]
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4. April 2014  |   State Aid Uncovered by Phedon Nicolaides

Guidance on the Application of Regulation 1370/2007 on Passenger Transport Services
train entering station
Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how […]
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28. March 2014  |   State Aid Uncovered by Phedon Nicolaides

Competitive Elements in the Selection of Operators of Sports Infrastructure May not Be Enough to Eliminate State Aid
sport arena seats
The existence of an advantage cannot be excluded when the operator of an infrastructural facility is chosen through a competitive procedure which combines price with other selection criteria. The users of a subsidised infrastructural facility who pay a market fee may still derive an advantage when the facility is designed and/or reserved for certain usage. Introduction   Ever since the Leipzig-Halle […]
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21. March 2014  |   State Aid Uncovered by Phedon Nicolaides

Public Funding of Projects that Encounter Financial Problems
motorway
Aid that is granted after the start of a project lacks incentive effect and is, therefore, incompatible with the internal market. However, aid may be justified when a project runs into financial trouble and, as a result, is likely to be abandoned without the aid. Introduction   In two decisions in December 2013, the European Commission authorised State aid for two […]
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14. March 2014  |   State Aid Uncovered by Phedon Nicolaides

SMEs Linked through Natural Persons
corporate building
Two or more enterprises may constitute a single undertaking when their owners and/or managers are related in a way that they can act jointly to exercise influence over the decision of those enterprises. Introduction   On 27 February 2014, the Court of Justice rendered a judgment on the notion of “linked enterprises” following a request for preliminary ruling from a […]
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6. March 2014  |   State Aid Uncovered by Phedon Nicolaides

The New Guidelines on State Aid to Airports and Airlines: Problematic Issues (part 2)
man looking airplane takeoff
Introduction Last week I reviewed the main provisions of the new Guidelines on State Aid to Airports and Airlines. This week I focus on three issues which are either not well explained or too ambiguous, leaving too much room for creative interpretation. [1] Investment funding gap The new Guidelines, like the other new rules, stress that aid must have an incentive […]
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28. February 2014  |   State Aid Uncovered by Phedon Nicolaides

The New Guidelines on State Aid to Airports and Airlines (part 1)
man looking airplane takeoff
Introduction[1] One more set of State aid rules for 2014-20 has been adopted. On Thursday, 20 February 2014, the Commission published its Guidelines on State Aid to Airports and Airlines.[2] The other main substantive rules which are already in place are the following, in chronological order:[3] The package on services of general economic interest (SGEI): A Communication, a Decision (like a […]
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21. February 2014  |   State Aid Uncovered by Phedon Nicolaides

The Role of National Courts in Recovery of Incompatible State Aid
court house
Introduction In December I examined the judgment in the case of Lufthansa v Frankfurt-Hahn, which laid down certain obligations for national courts whenever they are petitioned to suspend and even recover aid that happens to be at the same time under investigation by the Commission. In this article I review the judgment of the Court of Justice of 13 February […]
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14. February 2014  |   State Aid Uncovered by Phedon Nicolaides

An Assessment of the State Aid Consistency of Financial Instruments Supported by Structural and Investment Funds (Regulation 1303/2013)
coins on the table
Introduction Last week I reviewed the new State aid guidelines on risk finance. This week I will examine the provisions on financial instruments in the new structural and investment funds regulation. The regulation was published in the Official Journal just before Christmas. Both sets of rules have been updated on the basis of similar principles. The primary aim of both […]
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