Introduction On 19 May 2021, the General Court, in case T-643/20, Ryanair v Commission, annulled Commission decision SA.57116 by which it authorised State aid in favour of KLM in the context of the measures implemented by the Dutch government to address the covid-19 pandemic. In July 2021, the Commission re-adopted its original decision without the errors that had been identified […]
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.
State Aid Uncovered ×
13. February 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction A public measure can be classified as State aid only when it is funded from state resources. Measures funded from the budgets of public authorities are always considered to be supported by state resources. However, measures not funded from state budgets may still be supported by state resources. This is because, rather counterintuitively, the concept of state resources covers […]
6. February 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The prohibition of State aid in Article 107(1) TFEU applies both to direct and indirect beneficiaries. The direct beneficiary is the formal recipient of the aid. However, the formal recipient may only act as an intermediary through which aid flows to third parties or may in fact be required by the aid measure to pass on some or most […]
30. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The Commission, in its control of State aid, occasionally makes mistakes. EU courts may annul erroneous Commission decisions. This raises the question whether affected undertakings may ask for compensation. The answer is that in order to be eligible for compensation, an undertaking must have suffered damage as a result of an error that constitutes a “serious breach” of EU […]
23. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction Member States may impose public service obligations [PSO] on undertakings and compensate them for the extra costs they incur. The public service compensation [PSC] may also include reasonable profit. Naturally, the PSC may not cover costs that are not related to the PSO or the service of general economic interest [SGEI]. So, for multi-service providers, account separation is absolutely […]
16. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction An undertaking is any entity that carries out economic activities regardless of how it is classified in national law or how it is financed. The General Court, in its judgment of 20 December 2023, in case T-166/21, Autorità di sistema portuale del Mar Ligure occidentale v European Commission, also clarified that if an undertaking also carries out tasks assigned […]
9. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The European Commission is required by Regulation 2015/1589 to order recover of State aid that it finds to be incompatible with the internal market. However, it may not order recovery of illegal aid – i.e. non-notified aid – until it assesses its compatibility with the internal market. By contrast, national courts have no competence to assess the compatibility of […]
2. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction On 14 December 2023, the Court of Justice, in its judgment in joined cases C-693/21 P and C-698/21 P, EDP España & Naturgy Energy Group v European Commission, faulted the Commission for failing to provide a sufficient explanation why a Spanish measure was selective in the meaning of Article 107(1) TFEU.1 According to the Court of Justice, the Commission […]
27. December 2023 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The favourable tax treatment of multinational companies has long been in the sights of the Commission. However, the recent judgments on Fiat [C‑885/19 P, Fiat v Commission] and Engie [C‑454/21 P, Engie v Commission] have made it clear that Commission may not rely on principles which are not recognised in the tax laws of Member States. This fundamental rule […]
21. December 2023 |
State Aid Uncovered
by Phedon Nicolaides
Introduction On 23 November 2023, the Court of Justice, in case C-758/21 P, Ryanair v European Commission, rejected Ryanair’s action against the judgment of the General Court in case T-448/18, Ryanair v European Commission.1 In its judgment, the General Court dismissed Ryanair’s appeal against Commission decision 2018/628. In that decision, the Commission found, among other things, that Austria had granted […]
State Aid Uncovered ×
20. February 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction On 19 May 2021, the General Court, in case T-643/20, Ryanair v Commission, annulled Commission decision SA.57116 by which it authorised State aid in favour of KLM in the context of the measures implemented by the Dutch government to address the covid-19 pandemic. In July 2021, the Commission re-adopted its original decision without the errors that had been identified […]
13. February 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction A public measure can be classified as State aid only when it is funded from state resources. Measures funded from the budgets of public authorities are always considered to be supported by state resources. However, measures not funded from state budgets may still be supported by state resources. This is because, rather counterintuitively, the concept of state resources covers […]
6. February 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The prohibition of State aid in Article 107(1) TFEU applies both to direct and indirect beneficiaries. The direct beneficiary is the formal recipient of the aid. However, the formal recipient may only act as an intermediary through which aid flows to third parties or may in fact be required by the aid measure to pass on some or most […]
30. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The Commission, in its control of State aid, occasionally makes mistakes. EU courts may annul erroneous Commission decisions. This raises the question whether affected undertakings may ask for compensation. The answer is that in order to be eligible for compensation, an undertaking must have suffered damage as a result of an error that constitutes a “serious breach” of EU […]
23. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction Member States may impose public service obligations [PSO] on undertakings and compensate them for the extra costs they incur. The public service compensation [PSC] may also include reasonable profit. Naturally, the PSC may not cover costs that are not related to the PSO or the service of general economic interest [SGEI]. So, for multi-service providers, account separation is absolutely […]
16. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction An undertaking is any entity that carries out economic activities regardless of how it is classified in national law or how it is financed. The General Court, in its judgment of 20 December 2023, in case T-166/21, Autorità di sistema portuale del Mar Ligure occidentale v European Commission, also clarified that if an undertaking also carries out tasks assigned […]
9. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The European Commission is required by Regulation 2015/1589 to order recover of State aid that it finds to be incompatible with the internal market. However, it may not order recovery of illegal aid – i.e. non-notified aid – until it assesses its compatibility with the internal market. By contrast, national courts have no competence to assess the compatibility of […]
2. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction On 14 December 2023, the Court of Justice, in its judgment in joined cases C-693/21 P and C-698/21 P, EDP España & Naturgy Energy Group v European Commission, faulted the Commission for failing to provide a sufficient explanation why a Spanish measure was selective in the meaning of Article 107(1) TFEU.1 According to the Court of Justice, the Commission […]
27. December 2023 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The favourable tax treatment of multinational companies has long been in the sights of the Commission. However, the recent judgments on Fiat [C‑885/19 P, Fiat v Commission] and Engie [C‑454/21 P, Engie v Commission] have made it clear that Commission may not rely on principles which are not recognised in the tax laws of Member States. This fundamental rule […]
21. December 2023 |
State Aid Uncovered
by Phedon Nicolaides
Introduction On 23 November 2023, the Court of Justice, in case C-758/21 P, Ryanair v European Commission, rejected Ryanair’s action against the judgment of the General Court in case T-448/18, Ryanair v European Commission.1 In its judgment, the General Court dismissed Ryanair’s appeal against Commission decision 2018/628. In that decision, the Commission found, among other things, that Austria had granted […]
State Aid Uncovered ×
20. February 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction On 19 May 2021, the General Court, in case T-643/20, Ryanair v Commission, annulled Commission decision SA.57116 by which it authorised State aid in favour of KLM in the context of the measures implemented by the Dutch government to address the covid-19 pandemic. In July 2021, the Commission re-adopted its original decision without the errors that had been identified […]
13. February 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction A public measure can be classified as State aid only when it is funded from state resources. Measures funded from the budgets of public authorities are always considered to be supported by state resources. However, measures not funded from state budgets may still be supported by state resources. This is because, rather counterintuitively, the concept of state resources covers […]
6. February 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The prohibition of State aid in Article 107(1) TFEU applies both to direct and indirect beneficiaries. The direct beneficiary is the formal recipient of the aid. However, the formal recipient may only act as an intermediary through which aid flows to third parties or may in fact be required by the aid measure to pass on some or most […]
30. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The Commission, in its control of State aid, occasionally makes mistakes. EU courts may annul erroneous Commission decisions. This raises the question whether affected undertakings may ask for compensation. The answer is that in order to be eligible for compensation, an undertaking must have suffered damage as a result of an error that constitutes a “serious breach” of EU […]
23. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction Member States may impose public service obligations [PSO] on undertakings and compensate them for the extra costs they incur. The public service compensation [PSC] may also include reasonable profit. Naturally, the PSC may not cover costs that are not related to the PSO or the service of general economic interest [SGEI]. So, for multi-service providers, account separation is absolutely […]
16. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction An undertaking is any entity that carries out economic activities regardless of how it is classified in national law or how it is financed. The General Court, in its judgment of 20 December 2023, in case T-166/21, Autorità di sistema portuale del Mar Ligure occidentale v European Commission, also clarified that if an undertaking also carries out tasks assigned […]
9. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The European Commission is required by Regulation 2015/1589 to order recover of State aid that it finds to be incompatible with the internal market. However, it may not order recovery of illegal aid – i.e. non-notified aid – until it assesses its compatibility with the internal market. By contrast, national courts have no competence to assess the compatibility of […]
2. January 2024 |
State Aid Uncovered
by Phedon Nicolaides
Introduction On 14 December 2023, the Court of Justice, in its judgment in joined cases C-693/21 P and C-698/21 P, EDP España & Naturgy Energy Group v European Commission, faulted the Commission for failing to provide a sufficient explanation why a Spanish measure was selective in the meaning of Article 107(1) TFEU.1 According to the Court of Justice, the Commission […]
27. December 2023 |
State Aid Uncovered
by Phedon Nicolaides
Introduction The favourable tax treatment of multinational companies has long been in the sights of the Commission. However, the recent judgments on Fiat [C‑885/19 P, Fiat v Commission] and Engie [C‑454/21 P, Engie v Commission] have made it clear that Commission may not rely on principles which are not recognised in the tax laws of Member States. This fundamental rule […]
21. December 2023 |
State Aid Uncovered
by Phedon Nicolaides
Introduction On 23 November 2023, the Court of Justice, in case C-758/21 P, Ryanair v European Commission, rejected Ryanair’s action against the judgment of the General Court in case T-448/18, Ryanair v European Commission.1 In its judgment, the General Court dismissed Ryanair’s appeal against Commission decision 2018/628. In that decision, the Commission found, among other things, that Austria had granted […]
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Recent Posts
- New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure
- The Curious Case of Applying the Market Economy Investor Principle to a Monopoly
- Blog Intro
- The Market Economy Vendor Principle: Sale of Public Land by the Dutch Municipality of Leidschendam-Voorburg [Commission Decision SA.24123]
- An “Alternative” Method of Valuation for State-Aid-Free Sale of Public Land
- Loans, Guarantees and Credit Worthiness
- Where is the Money? The Link between Advantage and Transfer of State Resources
- Airport Operators and Budget Airlines [Commission Decision SA.23324: Finavia, Airpro and Ryanair at Tampere-Pirkkala Airport
- Sale of State-owned Airlines [Commission Decision SA.33337 on sale of subsidiaries by LOT Polish Airlines]
- Objectively Justified Pricing: The Market Economy Operator Principle
Recent Comments
- Phedon Nicolaides in "Identification of Undertakings in Difficulty"
- Martyn Williams in "Identification of Undertakings in Difficulty"
- Stuart in "Identification of Undertakings in Difficulty"
- Phedon Nicolaides in "Identification of Undertakings in Difficulty"
- Phedon Nicolaides in "Non-recovery of Incompatible State aid Is Costly"
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