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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2. July 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – July 2015
gavel
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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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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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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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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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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1. June 2015  |   State Aid Uncovered by Phedon Nicolaides

How Injection of Public Capital Can Be Free of State Aid
State Aid Blogs - m 1 4
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
State Aid Blogs - m 13 2
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
State Aid Blogs - m 14 2
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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2. September 2013  |   State Aid Uncovered by Phedon Nicolaides

Altmark and Public Procurement: Definition and Award of Contracts
handshake
Introduction Ever since the Court of Justice ruled on Altmark ten years ago there has been a growing literature on the specific conditions that have to be satisfied so that public assistance to a provider of services of general economic interest [SGEI] does not constitute state aid. In this context, the relationship between the Altmark criteria and the public procurement […]
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23. August 2013  |   State Aid Uncovered by Phedon Nicolaides

Selectivity and Administrative Discretion
computer keyboard
On 18 July 2013, in case C-6/12, the Court of Justice of the European Union rendered a judgment on an interesting aspect of the concept of selectivity.[1] The judgment concerned a request for preliminary ruling in a dispute between “P Oy”, a Finnish company, and Finnish tax authorities. The tax authorities refused to allow P Oy to deduct losses incurred in […]
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15. August 2013  |   State Aid Uncovered by Phedon Nicolaides

The Confusion between Necessity and Proportionality of State Aid [Case SA.35738: Public Funding of Port Infrastructure]
port
Introduction Several postings in this blog have examined cases concerning funding of port, airport or sport infrastructure. These cases have all had interesting peculiarities. Some involved no state aid because public authorities acted as private investors, while in other cases the funding arrangements were designed in such a way so that the state aid to operators would not spill over […]
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14. July 2013  |   State Aid Uncovered by Phedon Nicolaides

The Flexible Boundary between Economic and Non-economic Activities
gavel, animal figures, euros
This is a rather long posting divided into two parts both of which deal with the concept of economic activity. In part I, I analyse two cases outside the field of state aid that dealt with the concepts of undertaking and economic activity. Both of them originated in legal proceedings initiated before Austrian courts. In part II (that will come […]
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5. July 2013  |   State Aid Uncovered by Phedon Nicolaides

How to Use Economic Tools to Ensure the Proportionality of Aid (Commission Decision SA.34938 on a gas storage facility in Poland)
industry
Introduction Normally, economic analysis is used by the Commission to find out whether a measure confers an abnormal advantage to an undertaking. This would be the case, for example, when a public authority makes an investment that generates a return that falls below what the market would demand. The recipient undertaking derives an abnormal advantage [i.e. an advantage that would […]
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27. June 2013  |   State Aid Uncovered by Phedon Nicolaides

Public Support without State Aid
tablet with chart tabelle
Public measures that do not constitute state aid are as interesting as the measures that do provide aid. This posting examines two measures that have been found not to fall within the scope of Article 107(1) TFEU because they do not satisfy one or more of the four criteria laid down in that Article. Non-economic activity: Commission Decision SA.35529 on […]
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20. June 2013  |   State Aid Uncovered by Phedon Nicolaides

PuState Resources and Payments between Undertakings
euro coins
Introduction A couple of years ago, the big issue in State aid law was the concept of selectivity. The judgments in the British Aggregates and Dutch NOx cases expanded, elaborated, and, some argued, convoluted the criteria for determining whether a measure was selective or not. This year, the big issue for sure is the concept of State resources. First came […]
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9. June 2013  |   State Aid Uncovered by Phedon Nicolaides

Is the Commission Abusing its Discretion, or Should Member States be Allowed to Waste their Own Money?
businessman with a mask
The European State Aid Law Institute is celebrating the eleventh anniversary of its annual conference. For the past decade a perennial issue in EStALI events but also in similar events organised by other institutions has been the complaint of national officials that the rules on state aid are too intrusive and that the European Commission attempts to exert too much […]
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8. June 2013  |   State Aid Uncovered by Phedon Nicolaides

Public Funding of Stadiums and Arenas
sports arena
Introduction After the judgments of the General Court and the Court of Justice on public funding of infrastructure in the now landmark case of Leipzig-Halle, the European Commission is scrutinising more closely than ever the construction and operation of stadiums and arenas. In March 2012, the Commission opened two in-depth investigations into public funding for multi-function arenas, one in Uppsala […]
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3. June 2013  |   State Aid Uncovered by Phedon Nicolaides

Exceptional Circumstances, Natural Disasters, Commercial Risk and Rights of Complainants
tornado
This posting examines several recent measures which do not have a single common theme. However, each measure has unusual elements which should be of interest to State aid professionals. Exceptional circumstances: Commission Decision 2013/197 on aid to Cantiere Navale De Poli (IT)[1] The measure in question concerned State aid that Italy intended to provide to shipyard Cantiere Navale De Poli […]
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