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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6. May 2015  |   State Aid Uncovered by Phedon Nicolaides

A Market Operator, unlike a Public Authority, Does not Have to Treat all Customers Equally
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In managing infrastructure, a public authority acts as a private operator when it seeks a reasonable return on its investment and also takes into account the alternative of not operating the infrastructure. The manager of an infrastructural project may charge different fees to different users to optimise usage and increase revenue.   Introduction This article reviews Commission decision 2015/506 concerning […]
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29. April 2015  |   State Aid Uncovered by Phedon Nicolaides

Do Free but Compulsory Tests Confer a Selective Advantage?
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State aid rules apply to measures which are either harmonised at EU level or are left to the discretion of Member States. The protection of public health is no sufficient reason for removing a public measure from the scope of Article 107(1). The fact that undertakings are obliged by law to comply with certain tests does not justify the subsidisation […]
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27. April 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – May 2015
gavel
Interested in #Stateaid? Get in touch and write a blog post or a comment for the hub! Stateaidhub[at]lexxion.eu Wednesday 06/05/2015 Judgement in Case C-674/13 Commission v Germany (Court of Justice – Second Chamber) Hearing, Joined Cases T-50/06 RENV II, T-69/06 RENVII Ireland v Commission, Aughinish Alumina v Commission (General Court – First Chamber, Extended Composition)   Wednesday 13/05/2015 Judgement in Case […]
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20. April 2015  |   State Aid Uncovered by Phedon Nicolaides

Land Development
State Aid Blogs - StateAidHub blogpost47 Finance lexxion GBER SMEs
The sale of land and buildings owned by a public authority conforms with the market economy operator principle when i) it is profitable, ii) there is no alternative transaction that is economically more attractive, and iii) the sale is as profitable as similar transactions concluded at the same time.   Introduction The article examines Commission decision 2015/507 concerning the sale […]
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13. April 2015  |   State Aid Uncovered by Phedon Nicolaides

PART II: Green Electricity and Reduction of Energy Taxes for Energy-Intensive Users
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Part II: Support of electricity production from renewable energy sources is normally compatible with the internal market. Reduction of taxes on electricity used by energy-intensive industries is allowed only for certain sectors exposed to international trade and only when they bear a certain cost. Taxes on imported electricity normally infringe free-trade and non-discrimination provisions, unless commensurate benefits are extended to […]
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7. April 2015  |   State Aid Uncovered by Phedon Nicolaides

Green Electricity and Reduction of Energy Taxes for Energy-Intensive Users
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Support of electricity production from renewable energy sources is normally compatible with the internal market. Reduction of taxes on electricity used by energy-intensive industries is allowed only for certain sectors exposed to international trade and only when they bear a certain cost. Taxes on imported electricity normally infringe free-trade and non-discrimination provisions, unless commensurate benefits are extended to imported electricity. […]
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1. April 2015  |   State Aid Uncovered by Phedon Nicolaides

State Guarantees
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The amount of State aid in a guarantee that makes possible the granting of a loan to a well-collateralised firm in difficulty is not the difference in premium but the difference in interest rates. Beneficiaries of guarantees not notified to the Commission do not have any remedy under EU law. Introduction   Last week’s article examined State aid in the […]
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30. March 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – April 2015
gavel
Got something to say about State Aid? Want to write something on our Blog? Get in touch with us at Stateaidhub[at]lexxion.eu Thursday 16/04/2015 Judgment in Case C-690/13 Trapeza Eurobank Ergasias (Court of Justice – Ninth Chamber)   Monday 20/04/2015 Hearing in Case C-357/14 P Dunamenti Erőmű v Commission (Court of Justice – Third Chamber)   Wednesday 22/04/2015 Hearing in Case T-499/12 HSH Investment Holdings Coinvest-C and […]
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24. March 2015  |   State Aid Uncovered by Phedon Nicolaides

Loans for SMEs
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Low-interest loans may be used to support investments. The granting of de minimis aid through loans is possible only if loans are secured against collateral. The 2008 Commission Communication on interest rates does not apply to subordinated, non-collateralised loans.   Introduction “Investment for growth” is the slogan which seems to be on everybody’s lips in Brussels. Last Friday, the European […]
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20. March 2015  |   Guest State Aid Blog by Emma Linklater

In Brief: Case C‑672/13, OTP Bank Nyrt v Magyar Állam, Magyar Államkincstár
otp bank logo
A quick look at the latest ruling of the CJEU from Thursday 19th March.   In Case C‑672/13 OTP Bank the CJEU responded to preliminary ruling questions from the Hungarian Fővárosi Törvényszék relating to the categorisation of an agency agreement concluded in 2008 between the the Ministry of Local Government, the State Treasury and OTP Bank on the basis of Paragraph 24(15) of […]
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8. March 2013  |   State Aid Uncovered by Phedon Nicolaides

An “Alternative” Method of Valuation for State-Aid-Free Sale of Public Land
construction site
The obligation of the state to act as a private vendor   When a public authority sells an asset to an undertaking, it must sell it at market price. The case law is clear on this point, especially with respect to the sale of public land or a building. Such a sale may constitute state aid “where it is not […]
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1. March 2013  |   State Aid Uncovered by Phedon Nicolaides

The Market Economy Vendor Principle: Sale of Public Land by the Dutch Municipality of Leidschendam-Voorburg [Commission Decision SA.24123]
Cadastre
The previous posting examined a case where the European Commission applied the Market Economy Investor Principle [MEIP]. This is the principle that is used to determine whether there is state aid in commercial transactions between public authorities and undertakings. According to Article 345 of the Treaty on the Functioning of the European Union [TFEU], the European Union is neutral with […]
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18. February 2013  |   State Aid Uncovered by Phedon Nicolaides

The Curious Case of Applying the Market Economy Investor Principle to a Monopoly
monopoly game
On 3 October 2012, the European Commission concluded, in case SA.33988, that OPAP, the Greek operator of games of chance received no state aid because the Market Economy Investor Principle applied.[1] At first glance there is nothing unusual about a finding of no aid. But, as always, the devil is in the detail. OPAP holds the exclusive rights to organise various […]
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19. February 2013  |   State Aid Uncovered by Phedon Nicolaides

Blog Intro
pen and paper
State Aid Uncovered State aid law and policy evolve all the time. The basic rules are fairly stable but their interpretation and application are frequently adjusted to take into account changes in market conditions, novel forms of cooperation between public authorities and companies and ever more complex funding instruments and arrangements. This blog tracks the evolution of state aid law […]
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