Europäisches Beihilfenrecht Blog

State Aid Uncovered Blog

In Lexxions Blog „State Aid Uncovered” veröffentlicht Prof. Phedon Nicolaides wöchentlich kritische Analysen zu den neuesten Urteilen und Entscheidungen zu staatlichen Beihilfen. Jeder Beitrag stellt die wichtigsten Punkte eines Gerichtsurteils oder einer EU-Kommissionsentscheidung vor, ordnet sie in den Kontext ähnlicher Rechtsprechung oder Praxis ein, bewertet die zugrundeliegende Argumentation und zeigt etwaige Ungereimtheiten oder Widersprüche auf.

In loser Folge werden auf diesem Blog auch Gastbeiträge von anderen Experten für staatliche Beihilfen veröffentlicht, welche die Inhalte der Blogbeiträge ergänzen.

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Professor at Maastricht University; Professor at University of Nicosia, and Academic Director at Lexxion Training

Extra Aid to a Project that Has Already Started

Introduction State aid is not supposed to be granted to a project after work has already started because it lacks incentive effect. But when the project incurs unexpected costs, it is socially important so that it cannot be abandoned and without the aid it becomes commercially unviable, then the Commission may authorise additional aid. In March 2022, the Commission approved […]

State Aid Measures May Not Infringe Non-State Aid Law

Introduction It is now well established that the Commission may not authorise a state aid measure that infringes other provisions of EU law. However, those aspects or modalities of the measure that infringe other EU law must be indissolubly or inextricably linked to the object of the aid. On 11 September 2025, in case C-59/23 P, Austria v Commission, the […]

Auctions of State Aid for Renewable Hydrogen

Introduction Spain notified to the Commission an aid scheme for the promotion of production of renewable hydrogen through electrolysis. The objective of the scheme was to contribute to the reduction of greenhouse gas [GHG] emissions [SA.116676].[1] As explained in the Commission decision authorising the aid, “(5) hydrogen can be used as a feedstock, a fuel or an energy carrier and […]

Research and Economic Activities

Introduction The Netherlands notified an unusual measure to the Commission. The measure concerned the construction and operation of a research reactor and of an isotope processing facility in Petten in north Netherlands – the so-called PALLAS project. Although there are many nuclear reactors in Europe, very few are used for research purposes and for the production of isotopes for medical […]

Injection of State Capital that Is Free of State Aid

Introduction Directive 2014/59 on the recovery and resolution of financial institutions and Regulation 806/2014 on establishing the single resolution mechanism stipulate that if state aid is granted to a bank, it is automatically considered to be “failing or likely to fail” and it must be either resolved, if it is a systemic institution, or, otherwise, liquidated. The only exception is […]

The Limits of the Competence of National Courts to Review the Implementation of Approved Aid Schemes

Introduction National courts have competence to determine the existence of State aid and whether State aid regulations are interpreted correctly by national authorities. In addition, national courts may decide whether approved aid schemes are implemented according to the terms authorised by the Commission. But national courts have no competence to determine the compatibility of State aid itself with the internal […]

State-Aid Free Investment: Pari Passu or Benchmarked against Market Return

Introduction The Finnish state owned 100% of four different companies which operated risk capital and private equity. One of those four companies was “Tesi”. Finland proposed the consolidation of the other three companies – with an estimated value of EUR 500 million – into Tesi. In addition, Finland intended to inject extra capital of EUR 300 million in Tesi. For […]

The Date State Aid Is Granted

Introduction The date on which State aid is deemed to have been granted is a critical issue when aid is found to be incompatible with the internal market and has to be recovered. It is also critical when an approved aid scheme expires after the application for aid is submitted but before the aid is granted. On 3 July 2025, […]

Linked Enterprises through Relationships between Natural Persons

Introduction A perennial issue facing aid-granting authorities is whether the aid applicants are SMEs. A mis-assessment of the SME status can have dire consequences as demonstrated by a Commission decision in May 2025 concerning State aid granted by Germany to sawmill Abalon Hardwood Hessen [AHH] [SA.24030]. The Commission found the aid to be incompatible with the internal market and ordered […]

Selectivity and the Reference System

Introduction A public measure must be selective and satisfy the other criteria of Article 107(1) TFEU in order to be classified as State aid. The detection of selectivity requires a comparative exercise: a comparison of the aid beneficiary or beneficiaries with non-aid beneficiaries. But which non-aid beneficiaries to take into account. The answer is those who are in a similar […]

Extra Aid to a Project that Has Already Started

Introduction State aid is not supposed to be granted to a project after work has already started because it lacks incentive effect. But when the project incurs unexpected costs, it is socially important so that it cannot be abandoned and without the aid it becomes commercially unviable, then the Commission may authorise additional aid. In March 2022, the Commission approved […]

State Aid Measures May Not Infringe Non-State Aid Law

Introduction It is now well established that the Commission may not authorise a state aid measure that infringes other provisions of EU law. However, those aspects or modalities of the measure that infringe other EU law must be indissolubly or inextricably linked to the object of the aid. On 11 September 2025, in case C-59/23 P, Austria v Commission, the […]

Auctions of State Aid for Renewable Hydrogen

Introduction Spain notified to the Commission an aid scheme for the promotion of production of renewable hydrogen through electrolysis. The objective of the scheme was to contribute to the reduction of greenhouse gas [GHG] emissions [SA.116676].[1] As explained in the Commission decision authorising the aid, “(5) hydrogen can be used as a feedstock, a fuel or an energy carrier and […]

Research and Economic Activities

Introduction The Netherlands notified an unusual measure to the Commission. The measure concerned the construction and operation of a research reactor and of an isotope processing facility in Petten in north Netherlands – the so-called PALLAS project. Although there are many nuclear reactors in Europe, very few are used for research purposes and for the production of isotopes for medical […]

Injection of State Capital that Is Free of State Aid

Introduction Directive 2014/59 on the recovery and resolution of financial institutions and Regulation 806/2014 on establishing the single resolution mechanism stipulate that if state aid is granted to a bank, it is automatically considered to be “failing or likely to fail” and it must be either resolved, if it is a systemic institution, or, otherwise, liquidated. The only exception is […]

The Limits of the Competence of National Courts to Review the Implementation of Approved Aid Schemes

Introduction National courts have competence to determine the existence of State aid and whether State aid regulations are interpreted correctly by national authorities. In addition, national courts may decide whether approved aid schemes are implemented according to the terms authorised by the Commission. But national courts have no competence to determine the compatibility of State aid itself with the internal […]

State-Aid Free Investment: Pari Passu or Benchmarked against Market Return

Introduction The Finnish state owned 100% of four different companies which operated risk capital and private equity. One of those four companies was “Tesi”. Finland proposed the consolidation of the other three companies – with an estimated value of EUR 500 million – into Tesi. In addition, Finland intended to inject extra capital of EUR 300 million in Tesi. For […]

The Date State Aid Is Granted

Introduction The date on which State aid is deemed to have been granted is a critical issue when aid is found to be incompatible with the internal market and has to be recovered. It is also critical when an approved aid scheme expires after the application for aid is submitted but before the aid is granted. On 3 July 2025, […]

Linked Enterprises through Relationships between Natural Persons

Introduction A perennial issue facing aid-granting authorities is whether the aid applicants are SMEs. A mis-assessment of the SME status can have dire consequences as demonstrated by a Commission decision in May 2025 concerning State aid granted by Germany to sawmill Abalon Hardwood Hessen [AHH] [SA.24030]. The Commission found the aid to be incompatible with the internal market and ordered […]

Selectivity and the Reference System

Introduction A public measure must be selective and satisfy the other criteria of Article 107(1) TFEU in order to be classified as State aid. The detection of selectivity requires a comparative exercise: a comparison of the aid beneficiary or beneficiaries with non-aid beneficiaries. But which non-aid beneficiaries to take into account. The answer is those who are in a similar […]

The Cumulation of State Aid Granted by Different Member States — The Landwärme Case

Guest State Aid Blog by Professor Leigh Hancher, Nicole Robins and Dr Philipp Schliffke[1] 1 Introduction The Renewable Energy Directive 2018/2001 (‘RED II’) states that ‘the promotion of the production and use of biomethane, its injection into a natural gas grid and cross-border trade create a need to ensure proper accounting of renewable energy as well as avoiding double incentives […]

The Interplay of R&D Works and Formal Incentive Effect Rules

The Interplay of R&D Works and Formal Incentive Effect Rules Michał Bernat.1 The issue mentioned in the title appears at first sight rather uncontroversial, as it is instinctively understood that research and development (R&D) works do not form part of an investment towards which they are directed, but this brief note raises certain issues arising in that respect which have […]

A Visionary XXX FIDE Congress Approaching

We’re happy to announce that Lexxion publisher has become a media partner to the FIDE Congress, one of the most distinguished events on EU law. Of particular interest for the readers of the State Aid blog and the EStAL quarterly is the second topic of the congress, dedicated to the new geopolitical dimension of the EU competition and trade policies. […]

Further Views on Editorial by Andreas Bartosch (EStAL 1/2022, 1)

Reading the Editorial by Andreas Bartosch (EStAL 1/2022, 1), I feel tempted – not to worship Satan or the GBER, but to add some more colours to the picture drawn up by the esteemed colleague. It is true that the Block Exemption Regulations were intended to save the Commission Services from „lästigem Alltagsgerümpel“ (“boring routine rubbish”, as Andreas Bartosch dubbed […]

How to approach the risk of carbon lock-in effects in state aid analysis?

A recent FSR Debate[1] held on 4 May examined the key question of how policymakers and regulators can avoid carbon lock-in jeopardising the attainment of the European Union’s ambitious energy and climate targets. Carbon lock-in refers to situations where emissions-intensive energy assets continue to be used even when low-carbon and socially more beneficial assets are available.  This is a controversial […]

The European Commission’s Opening Decision in the German Lignite Phase-Out Case – Part II.

The article is based on a legal opinion, that was given to LEAG. Doubts regarding the existence of an advantage – continued Compensation amounts based on a MEO settlement agreement An essential component of the compensation covering the full scope of any damages caused to the operators affected by the early closure is also the avoidance of legal and factual […]

The European Commission’s Opening Decision in the German Lignite Phase-Out Case – Part I.

The article is based on a legal opinion, that was given to LEAG. Introduction The European Green Deal envisages a clean and decarbonised energy sector with net-zero greenhouse gas emissions by 2050.[1] These ambitious objectives entrust the Member States with enormous tasks in connection with the transformation process, which must always be designed in a proportionate manner. For this purpose, […]

Pre- Notifications, Preliminary Investigations and the Rights of Third Parties in State Aid Procedures – Beware of the Black Hole!

The persistently cautious approach of the Court of Justice of the European Union (CJEU) to recognizing any really meaningful rights for third parties in State aid proceedings before the European Commission as well as in judicial proceedings is well-known and frequently criticized. With the recent adoption of the new Climate Law at the end of June and the official launch […]

Public Support to Ultrafast Networks in the Italian NRRP

As part of the investments to support the digitisation, innovation and competitiveness of the production system[1], the Italian Recovery and Resilience Plan (NRRP) has allocated €6.71 billion for interventions in favor of ultra-fast networks (ultra-broadband and 5G)[2]. The amount will be deployed by 2026 to achieve the objectives defined in the “Italian Strategy for ultra-broadband”[3] in accordance with the EU […]

The UK’s New Subsidy Control Bill: Targeting a Faster, More Permissive Regime Than EU State Aid Rules

The long awaited Subsidy Control Bill has been published by the UK Government with bold promises that it will “create a new system for subsidies that can enable key domestic priorities, such as levelling up economic growth across the UK and driving our green industrial revolution“.  In this article we identify the main changes immediately emerging from the draft legislation, […]

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