Europäisches Beihilfenrecht Blog

State Aid Uncovered Blog

On a weekly basis Phedon Nicolaides posts critical analysis pieces on the latest State aid judgments and decisions on his blog State Aid Uncovered. Each article presents the main points of a court ruling or Commission‘s decision, places them in the context of similar case law or practice, assesses the underlying reasoning, and identifies any inconsistencies or contradictions.
Occasional guest blog posts by other State aid experts complement the State aid knowledge hub.

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

When Are Decisions of State-owned Companies Imputed to the State?

Introduction According to Article 4 of Regulation 2015/1589 [the Procedural Regulation], when the Commission, after a preliminary examination of a State aid measure, has doubts as to the absence of State aid or the compatibility of the aid with the internal market, it must open the formal examination procedure. The case law says that doubts arise when the Commission encounters […]

Decarbonisation

Introduction The Netherlands intends to reduce the emission of greenhouse gasses [GHG] by 55% by the year 2050. For this reason, in June 2023 it notified to the Commission a new version of a scheme, called the “Stimulering Duurzame Energieproductie en Klimaattransitie” [SDE++] which loosely translated means incentivising sustainable production of energy and climate transition. Its purpose is to fund […]

Transition to a Net-Zero Economy

Introduction Although the TCTF requires notification of aid measures, it seems to be more user-friendly than State aid guidelines. This is because Member States may simply copy its provisions in their local law or administrative instrument and sent it to the Commission. A case in point is a German scheme that is reviewed in this article. It was notified to […]

Electricity Storage

Introduction As indicated by its title, the Temporary Crisis and Transition Framework [TCTF] allows for State aid whose purpose goes beyond the immediate relief of the costs of the market disruption caused by the Russian invasion of Ukraine. Europe’s energy policy does not only aim to reduce dependence on Russian gas, but also to shift to low or zero carbon […]

A Large Investment Project (Part II)

Introduction According to the latest edition of the State aid Scoreboard, in 2021, Member States granted EUR 14 billion of aid to support regional development. That amount corresponded to about 10% of the total non-crisis aid. What is perhaps more interesting is that close to EUR 12.5 billion or 90% of the total regional aid was granted on the basis […]

A Large Investment Project (Part I)

Introduction According to the latest edition of the State aid Scoreboard, in 2021, Member States granted EUR 14 billion of aid to support regional development. That amount corresponded to about 10% of the total non-crisis aid. What is perhaps more interesting is that close to EUR 12.5 billion or 90% of the total regional aid was granted on the basis […]

Decarbonisation of Steel Production

Introduction Many, perhaps the majority, of notifications on the basis of the Guidelines on Climate, Environmental Protection and Energy [CEEAG] concern decarbonisation of production processes. In this context, large amounts of State aid have been funnelled to the decarbonisation of steel production. ArcelorMittal has been a major beneficiary. In February 2023, Spain granted EUR 460 million to support ArcelorMittal to […]

Profitability as a Criterion of the Compatibility of State Aid with the Internal Market

Introduction When the state has a realistic prospect of making profit, its financial transactions with third parties do not constitute State aid. The absence of profit is a strong indicator of the presence of State aid but not necessarily its compatibility with the internal market. For State aid to be compatible with the internal market it must, among other things, […]

I) State Aid Guidelines & II) Repayment of State Aid

Introduction This article reviews two judgments of the Court of Justice: On the Greenhouse Gas Emissions Guidelines and on a structural funds regulation. No Member State has ever succeeded in challenging the Commission’s State aid guidelines. In the first judgment, a group of undertakings tried to dispute the legality of a set of guidelines. Not surprisingly, they failed. The second […]

The Non-economic Nature of a Public Health System and Regional Development

Introduction This article reviews two judgments: On a public health system and on regional development through capital injections. I. Public health system On 27 April 2023, the Court of Justice rendered its judgment in case C-492/21 P, Casa Regina Apostolorum della Pia Società delle Figlie di San Paolo v European Commission.[1] Casa Regina Apostolorum della Pia Società delle Figlie di […]

Decarbonisation

Introduction The Netherlands intends to reduce the emission of greenhouse gasses [GHG] by 55% by the year 2050. For this reason, in June 2023 it notified to the Commission a new version of a scheme, called the “Stimulering Duurzame Energieproductie en Klimaattransitie” [SDE++] which loosely translated means incentivising sustainable production of energy and climate transition. Its purpose is to fund […]

Transition to a Net-Zero Economy

Introduction Although the TCTF requires notification of aid measures, it seems to be more user-friendly than State aid guidelines. This is because Member States may simply copy its provisions in their local law or administrative instrument and sent it to the Commission. A case in point is a German scheme that is reviewed in this article. It was notified to […]

Electricity Storage

Introduction As indicated by its title, the Temporary Crisis and Transition Framework [TCTF] allows for State aid whose purpose goes beyond the immediate relief of the costs of the market disruption caused by the Russian invasion of Ukraine. Europe’s energy policy does not only aim to reduce dependence on Russian gas, but also to shift to low or zero carbon […]

A Large Investment Project (Part I)

Introduction According to the latest edition of the State aid Scoreboard, in 2021, Member States granted EUR 14 billion of aid to support regional development. That amount corresponded to about 10% of the total non-crisis aid. What is perhaps more interesting is that close to EUR 12.5 billion or 90% of the total regional aid was granted on the basis […]

Decarbonisation of Steel Production

Introduction Many, perhaps the majority, of notifications on the basis of the Guidelines on Climate, Environmental Protection and Energy [CEEAG] concern decarbonisation of production processes. In this context, large amounts of State aid have been funnelled to the decarbonisation of steel production. ArcelorMittal has been a major beneficiary. In February 2023, Spain granted EUR 460 million to support ArcelorMittal to […]

The Non-economic Nature of a Public Health System and Regional Development

Introduction This article reviews two judgments: On a public health system and on regional development through capital injections. I. Public health system On 27 April 2023, the Court of Justice rendered its judgment in case C-492/21 P, Casa Regina Apostolorum della Pia Società delle Figlie di San Paolo v European Commission.[1] Casa Regina Apostolorum della Pia Società delle Figlie di […]

Regional Operating Aid

Introduction On 21 June 2023, the General Court delivered its judgment in case T-131/21, Região Autónoma da Madeira v European Commission.[1] It rejected the action of the Autonomous Region of Madeira [ARM] by which it sought the annulment of Commission decision 2022/1414 on aid scheme implemented by Portugal for the Madeira Free Zone or Zona Franca da Madeira [ZFM]. The […]

Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART II)

Introduction When public authorities buy goods and services for themselves, they have to pay a market price, otherwise they confer an abnormal advantage to the sellers. On 14 June 2023, the General Court, in case T‑79/21, Ryanair & Airport Marketing Services v European Commission, ruled that public authorities still confer an abnormal advantage by buying good and services that they […]

Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART I)

Introduction When public authorities buy goods and services for themselves, they have to pay a market price, otherwise they confer an abnormal advantage to the sellers. On 14 June 2023, the General Court, in case T-79/21, Ryanair & Airport Marketing Services v European Commission, ruled that public authorities still confer an abnormal advantage by buying good and services that they […]

Regulatory Measures Are not State aid & Trade Unions Are not “Interested Party”

Introduction This article reviews two recent judgments dealing with the concept of state resources and the meaning of “interested party”, respectively. State resources On 8 June 2023, the Court of Justice clarified, by its judgment in case C-50/21, Prestige and Limousine SL, that purely regulatory measures may confer and advantage without, however, granting State aid.1 The Court was responding to […]

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, […]

When State Aid Gets Political

We are happy to receive a guest comment on the EU – UK post-Brexit trade negotiations from Professor Emerita, Erika Szyszczak, who is a Fellow of UKTPO at the University of Sussex. This is a longer version of an earlier Blog published on the UKTPO website. Control over State aid is a stumbling block for the future of an EU […]

Belgium and COVID-19: The European Commission Approves Several Belgian State Aid Measures

We are happy to share with you an update on the Covid-19 measures that have been approved in Belgium. Our guest auhor Wout De Cock is a PhD candidate at the Vrije Universiteit Brussel and part-time teaching assistant at the Katholieke Universiteit Leuven.* Introduction In issue 1/2020 of the European State Aid Law Quarterly, we concluded that the European Commission […]

How to Submit a Blog Post

Do you want to share your analysis of a State aid law topic? We invite you to submit your post on, for example: recent European, national or international judgments or legislation with relevance to EU State aid law; new developments, publications, hot topics in EU State aid law. The recommended length of the post is 500-2,000 words incl. references (endnotes). Your analysis will be published under the category ‘Guest State Aid Blog’.

Here’s how you can publish a post on the Blog as a guest author:

Step 1: Submit your draft to Nelly Stratieva at stratieva@lexxion.eu.

Step 2: We at Lexxion will review your draft to make sure its content and quality fit the blog. If needed, they will suggest what improvements you should make.

Step 3: Once your draft has been finalised and accepted, we will publish your post.

Gastbeitrag einreichen

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