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!

20. May 2014  |   State Aid Uncovered by Phedon Nicolaides

Market Operator in Electricity Distribution: Long-term Purchasing Agreements Must Balance Risks and Rewards
electricity wires
A market operator accepts to be bound in long-term contracts, which entail more risk because market conditions may change, only when he gets compensated with more certainty that costs will remain stable. Contractual clauses which vary from standard commercial practice are suspect. A measure can be selective even when it uses objective criteria to define eligible beneficiaries. Trade can be affected and competition […]
read more
No Comments
13. May 2014  |   State Aid Uncovered by Phedon Nicolaides

The Perils of Ex Post Compensation of Public Services Obligations
bus
Providers of SGEI must maintain separate accounts. Parameters of compensation must be determined in advance. Ex-post formulation is not in conformity with State aid rules. Ex-post calculation of compensation that covers all costs and eliminates commercial risk is not compatible with State aid rules. Introduction   The calculation of the compensation to be offered to providers of services of general economic interest […]
read more
No Comments
2. May 2014  |   State Aid Uncovered by Phedon Nicolaides

The New Guidelines on State Aid for Environmental Protection and Energy, 2014-2020
recycle sign
The new guidelines are wider in scope: They also cover energy infrastructure, energy capacity and reductions from electricity levies. The new guidelines have higher thresholds for individual notifications. They allow higher aid intensity when aid is granted through competitive bidding. They require more rigorous application of the principles of necessity and proportionality of aid. Introduction   In 2012, the latest year for which […]
read more
No Comments
25. April 2014  |   State Aid Uncovered by Phedon Nicolaides

A Textbook Case of False Arguments: T-150/12, Greece v Commission
court building
Recipients of State aid obtain an advantage even if they do not succeed to improve their position on the market. Recipients of State aid obtain an advantage whenever their competitors in intra-EU trade do not receive the same aid from the same source. Even small amounts of aid can disturb intra-EU trade where there is strong cross-border competition. The European Commission is not […]
read more
No Comments
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 […]
read more
No Comments
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 […]
read more
No Comments
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 […]
read more
No Comments
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 […]
read more
No Comments
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 […]
read more
No Comments
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 […]
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