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

7. Mai 2024 | State Aid Uncovered von Phedon Nicolaides

Public Procurement and State Aid

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Introduction A faulty public procurement procedure or the use of discriminatory selection criteria can confer an advantage on the chosen undertaking that may constitute an advantage in the meaning of Article 107(1) TFEU. The result will be infringement of both public procurement rules and State aid rules. A recent Commission decision, SA.47650, is instructive on how Member States should design […]

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30. April 2024 | State Aid Uncovered von Phedon Nicolaides

A Case of a Narrow Tax that Is Not Selective

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Introduction On 17 April 2024, the General Court ruled, in case T-112/22, Ideella föreningen Svenska Bankföreningen med firma Svenska Bankföreningen, Näringsverksamhet & Länsförsäkringar Bank v Commission, that a Swedish tax on only nine banks was not selective by not taxing the many smaller banks.1 The applicants, a Swedish banking association and a Swedish bank, respectively, sought the annulment of Commission […]

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23. April 2024 | State Aid Uncovered von Phedon Nicolaides

Pricing of Access to Infrastructure for the Treatment of Waste Water

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Introduction It is not unusual for EU courts to refer to the Commission’s 2016 Notice on the Notion of State Aid as a means of shedding light to the more obscure aspects of that notion. What is very unusual is for EU courts to treat the Notice as if it has the same status as the guidelines that bind the […]

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16. April 2024 | State Aid Uncovered von Phedon Nicolaides

Awards by Arbitration Tribunal

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Introduction In an unusual judgment, the Court of Justice found on 14 March 2024, in case C-516/22, Commission v UK, that the UK had infringed Article 4(3) TEU, Article 108(3) TFEU, Article 267(1)&(3) TFEU and Article 351(1) TFEU, in conjunction with Article 127(1) of the Agreement on the withdrawal of the UK from the EU because the UK Supreme Court […]

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9. April 2024 | State Aid Uncovered von Phedon Nicolaides

An Innovative Risk-Sharing Tool for the Support of an LNG Terminal

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Introduction The Commission, in decision SA.102163, authorised State aid for the construction of a terminal for liquefied natural gas [LNG] in Brunsbüttel, Germany.1 The project consists of an LNG import, storage and distribution facility with annual capacity of about 10 billion m3. The project is carried out by the German LNG Terminal GmbH [GLNG] which has three shareholders: the Dutch […]

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2. April 2024 | State Aid Uncovered von Phedon Nicolaides

The Court of Justice Conflates Objective Justification with Policy Objective, in the context of Public Support of Green Electricity

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Introduction Suppose a Member State subsidises the installation of solar panels on the roof of a corporate building situated at number 5 on Main Street. Is this a general measure because there is no other building in the whole country with the same address? Of course, it is not a general measure. The uniqueness of the address is irrelevant. Apart […]

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26. März 2024 | State Aid Uncovered von Phedon Nicolaides

Applying the Funding Gap Method to an Important Project of Common European Interest – Part II

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Introduction On 28 February 2024, the General Court delivered an important judgment in case T-390/20, Scandlines v Commission.(1) The judgment is important because it interpreted the Commission guidelines on Important Projects of Common European Interest [IPCEI], the funding gap methodology for determining the necessary amount of aid and the 2008 Commission Notice on state guarantees. Scandlines sought annulment of Commission […]

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19. März 2024 | von Phedon Nicolaides

Applying the Funding Gap Method to an Important Project of Common European Interest – Part I

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Introduction On 28 February 2024, the General Court delivered an important judgment in case T-390/20, Scandlines v Commission.(1) The judgment is important because it interpreted the Commission guidelines on Important Projects of Common European Interest [IPCEI], the funding gap methodology for determining the necessary amount of aid and the 2008 Commission Notice on state guarantees. Scandlines sought annulment of Commission […]

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12. März 2024 | State Aid Uncovered von Phedon Nicolaides

Public Infrastructure and State Prerogatives

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Introduction On 28 February 2024, the General Court delivered two important judgments on the presence of State aid and its compatibility with the internal market in connection to public funding of the Fehmarn Fixed Link between Denmark and Germany. The Fixed Link is a major infrastructure project consisting of tunnels, bridges and access road and rail connections. The judgments of […]

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5. März 2024 | State Aid Uncovered von Phedon Nicolaides

State Aid and Arbitration of Disputes

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Introduction On 22 February 2024, the Court of Justice [CJEU] delivered its judgment in joined Cases C-701/21 P and C-739/21 P, Mytilinaios v DEI & European Commission. Mytilinaios, a Greek company, and the Commission appealed against the judgment of the General Court in case T-639/14 RENV, DEI v Commission, concerning arbitration of a dispute between Mytilinaios and DEI, the main […]

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14. August 2023 | State Aid Uncovered von Phedon Nicolaides

A Large Investment Project (Part I)

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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 […]

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7. August 2023 | State Aid Uncovered von Phedon Nicolaides

Decarbonisation of Steel Production

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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 […]

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18. Juli 2023 | State Aid Uncovered von Phedon Nicolaides

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

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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 […]

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10. Juli 2023 | State Aid Uncovered von Phedon Nicolaides

Regional Operating Aid

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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 […]

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3. Juli 2023 | State Aid Uncovered von Phedon Nicolaides

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

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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 […]

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27. Juni 2023 | State Aid Uncovered von Phedon Nicolaides

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

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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 […]

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20. Juni 2023 | State Aid Uncovered von Phedon Nicolaides

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

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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 […]

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13. Juni 2023 | State Aid Uncovered von Phedon Nicolaides

How the Infringement of Non-State aid Rules Can Affect the Compatibility of State aid

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Introduction It is now well-established that if a State aid measure is inherently or indissolubly linked to a an infringement of EU law outside the field of State aid it cannot be found to be compatible with the internal market. As a result of the judgment of the General Court on 24 May 2023, in case T-268/21, Ryanair v European […]

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6. Juni 2023 | State Aid Uncovered von Phedon Nicolaides

A First Case of “Significant Market Power”

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Introduction On the same day that the General Court ruled on the recapitalisation of SAS, it also ruled on the recapitalisation of Lufthansa in case T-34/21, Ryanair v European Commission.1 In the latter case, Ryanair sought the annulment of Commission decision SA.57153 of June 2020 by which the Commission approved injection of capital in Deutsche Lufthansa [DLH] of the amount […]

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30. Mai 2023 | State Aid Uncovered von Phedon Nicolaides

The 2020 Temporary State aid Framework and Recapitalisation of Undertakings

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Introduction Ryanair has challenged many Commission decisions authorising State aid for its rivals. In 2021 and 2022, the General Court delivered 12 judgments concerning covid-19-related aid granted to other airlines. Of those 12 judgments, Ryanair temporarily won only three. Its wins were transient because the General Court suspended the annulment of the relevant Commission decisions, on the grounds that the […]

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