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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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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26. May 2013  |   State Aid Uncovered by Phedon Nicolaides

The Puzzle of Environmental Aid: Why Do Firms Make Environmental Investments?
windmills
Introduction Environmental aid is the second largest horizontal category of state aid, after regional aid. It accounts for about 24% of all aid to industry and services. Yet, one often hears from public officials that the current Environmental Aid Guidelines (EAG) do not provide sufficient incentives for environmental protection. The problem is that aid is calculated as a percentage not […]
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20. May 2013  |   State Aid Uncovered by Phedon Nicolaides

Restrictions on Sale of Land and Social Housing
hands holding house model
Introduction This posting reviews the judgment of the Court of Justice of the European Union in two joined cases: Eric Libert, et al v Gouvernement Flamand, (C‑197/11) and All Projects & Developments NV and Others v Vlaamse Regering, (C‑203/11).[1] The judgment which was rendered on 8 May 2013 is important because it addresses several issues concerning public service obligations, their relationship with […]
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9. May 2013  |   State Aid Uncovered by Phedon Nicolaides

Taxes and Tax Reductions on Air Travel: Selectivity and Compatibility
airplanes on the runway
This posting examines an Irish and a German measure concerning reduction in passenger taxes. As to be expected, an important issue for both measures was whether the reduction was selective or not. The analysis of the Commission does not really break new ground. What is more instructive with these two cases is the range and ingenuity of the arguments advanced […]
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1. May 2013  |   State Aid Uncovered by Phedon Nicolaides

Fiscal Leveraging: Donations and State Aid for Culture and Sports
runners on the track
Introduction In this blog I examine primarily a Dutch measure that supports cultural institutions by providing tax incentives to individuals and corporations to make donations to those institutions. This is an unusual construction because the direct beneficiaries are different from the indirect beneficiaries which, however, are the main targets of the measure. This construction has been used rather extensively in […]
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21. April 2013  |   State Aid Uncovered by Phedon Nicolaides

Ex Post Evaluation of State Aid: A New Instrument
evaluation smileys
Introduction: The need for evaluation The State Aid Modernisation that was launched by the European Commission in May 2012 aims primarily to channel State aid to remedying genuine market failure. Subsequent policy documents have all been based on this underlying aim: to ensure that State aid is truly needed and effective in addressing market failure. The need and effectiveness of […]
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12. April 2013  |   State Aid Uncovered by Phedon Nicolaides

Objectively Justified Pricing: The Market Economy Operator Principle
office table
Introduction: Objective justification of price differentiation In a landmark judgment 25 years ago [February 1988], the Court of Justice established that business behaviour that appears to deviate from normal market practices can still conform with the market economy operator principle [MEOP] which is a variation of the better known market economy investor principle [MEIP]. Both principles are based on the […]
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7. April 2013  |   State Aid Uncovered by Phedon Nicolaides

Sale of State-owned Airlines [Commission Decision SA.33337 on sale of subsidiaries by LOT Polish Airlines]
airplane on the runway
Introduction In the previous posting I examined the funding of a regional airport. In this posting I look at a case concerning an airline; more specifically, the sale of three subsidiaries of Polish airline LOT.[1] During the past five or so years, the Commission has had to deal with many measures involving different kinds of public support to airlines [e.g. Alitalia, […]
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30. March 2013  |   State Aid Uncovered by Phedon Nicolaides

Airport Operators and Budget Airlines [Commission Decision SA.23324: Finavia, Airpro and Ryanair at Tampere-Pirkkala Airport
people on the airport
During the past 18 months or so, the European Commission has launched more than 20 investigations in the funding of regional airports and the arrangements that these airports have concluded with budget airlines such as Ryanair. This posting analyses a very recent Commission decision which found that no State aid was granted to either the airport operator or Ryanair. This […]
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