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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State Aid Uncovered ×

A Large Investment Project that is Partly Funded Directly by the EU

Introduction In July 2024, the Commission published its decision on State aid measure SA.104269 concerning a large investment project [LIP] undertaken by 3Sun in Italy. 3Sun is a subsidiary of Enel, the Italian energy company that is also one of the largest energy companies in Europe. The project would take place in Catania, a city in the NUTS 2 region […]

The Existence of State Aid Must Be Proven on the Basis of Credible Evidence

Introduction This article reviews two cases in which courts found that it had not been proven that all of the criteria of Article 107(1) TFEU had been satisfied. Case I: Not being able to prove that the measure is attributed to a decision of the state With decision 2024/2033, published in OJ L, 29 July 2024, the Commission corrected its […]

State Aid Measures May not Infringe EU Law outside the Field of State Aid

Introduction In December 2020, the Commission approved State aid scheme SA.59029 by which Italy compensated airlines for damage they had suffered as a result of covid-19-related restrictions, in the period from 1 March to 15 June 2020. Eligible airlines were only those that were licensed in Italy. The aid was approved on the basis of Article 107(2)(b) TFEU. In May […]

Electricity Produced from High-Efficiency Combined Heat & Power Plants

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] […]

Compliance with EU State Aid Rules

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 […]

Repayment of Incompatible State Aid Is Inescapable

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 […]

The Commission May Authorise a Public Measure only if it Constitutes State Aid

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 […]

Green Energy Certificates

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 […]

Obligations Imposed by the State Cannot Justify Tax Exemptions

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 […]

Member States May Grant State Aid to Single Beneficiaries

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 […]

State Aid Uncovered ×

A Large Investment Project that is Partly Funded Directly by the EU

Introduction In July 2024, the Commission published its decision on State aid measure SA.104269 concerning a large investment project [LIP] undertaken by 3Sun in Italy. 3Sun is a subsidiary of Enel, the Italian energy company that is also one of the largest energy companies in Europe. The project would take place in Catania, a city in the NUTS 2 region […]

The Existence of State Aid Must Be Proven on the Basis of Credible Evidence

Introduction This article reviews two cases in which courts found that it had not been proven that all of the criteria of Article 107(1) TFEU had been satisfied. Case I: Not being able to prove that the measure is attributed to a decision of the state With decision 2024/2033, published in OJ L, 29 July 2024, the Commission corrected its […]

State Aid Measures May not Infringe EU Law outside the Field of State Aid

Introduction In December 2020, the Commission approved State aid scheme SA.59029 by which Italy compensated airlines for damage they had suffered as a result of covid-19-related restrictions, in the period from 1 March to 15 June 2020. Eligible airlines were only those that were licensed in Italy. The aid was approved on the basis of Article 107(2)(b) TFEU. In May […]

Electricity Produced from High-Efficiency Combined Heat & Power Plants

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] […]

Compliance with EU State Aid Rules

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 […]

Repayment of Incompatible State Aid Is Inescapable

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 […]

The Commission May Authorise a Public Measure only if it Constitutes State Aid

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 […]

Green Energy Certificates

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 […]

Obligations Imposed by the State Cannot Justify Tax Exemptions

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 […]

Member States May Grant State Aid to Single Beneficiaries

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 […]

State Aid Uncovered ×

A Large Investment Project that is Partly Funded Directly by the EU

Introduction In July 2024, the Commission published its decision on State aid measure SA.104269 concerning a large investment project [LIP] undertaken by 3Sun in Italy. 3Sun is a subsidiary of Enel, the Italian energy company that is also one of the largest energy companies in Europe. The project would take place in Catania, a city in the NUTS 2 region […]

The Existence of State Aid Must Be Proven on the Basis of Credible Evidence

Introduction This article reviews two cases in which courts found that it had not been proven that all of the criteria of Article 107(1) TFEU had been satisfied. Case I: Not being able to prove that the measure is attributed to a decision of the state With decision 2024/2033, published in OJ L, 29 July 2024, the Commission corrected its […]

State Aid Measures May not Infringe EU Law outside the Field of State Aid

Introduction In December 2020, the Commission approved State aid scheme SA.59029 by which Italy compensated airlines for damage they had suffered as a result of covid-19-related restrictions, in the period from 1 March to 15 June 2020. Eligible airlines were only those that were licensed in Italy. The aid was approved on the basis of Article 107(2)(b) TFEU. In May […]

Electricity Produced from High-Efficiency Combined Heat & Power Plants

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] […]

Compliance with EU State Aid Rules

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 […]

Repayment of Incompatible State Aid Is Inescapable

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 […]

The Commission May Authorise a Public Measure only if it Constitutes State Aid

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 […]

Green Energy Certificates

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 […]

Obligations Imposed by the State Cannot Justify Tax Exemptions

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 […]

Member States May Grant State Aid to Single Beneficiaries

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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