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

27. April 2021 | State Aid Uncovered von Phedon Nicolaides

Individual Aid Measures to Combat Covid-19

State Aid Blogs - StateAidHub blogpost17 airline

Aid to remedy a serious economic disturbance may be granted to a single company that is important for the national economy. EU law does not extend to competitors a right to the same aid. Introduction Between March 2020 and April 2021, the European Commission has authorised aid totalling more than EUR 2.5 trillion to remedy the serious economic disturbance caused […]

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20. April 2021 | State Aid Uncovered von Phedon Nicolaides

Draft New RDI Framework

State Aid Blogs - StateAidHub blogpost16 RDI

The new RDI Framework provides continuity with clarity. On Monday, 19 April 2021, the European Commission published the new Regional Aid Guidelines for the period 2022-2027. They can be accessed at: https://ec.europa.eu/competition/state_aid/regional_aid/RAG_2021_adopted_communication.zip Introduction On 8 April 2021, the European Commission published the text of the draft new RDI Framework and launched public consultation.[1] The draft RDI Framework is accompanied by […]

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13. April 2021 | State Aid Uncovered von Phedon Nicolaides

State Guarantee to an Energy Project

State Aid Blogs - StateAidHub blogpost15 gas

A state guarantee can bridge the funding gap of an infrastructure project. Introduction State aid rules allow energy infrastructure projects to be supported by as much aid as is necessary to bridge their “funding gap”; i.e. the difference between the initial investment cost and the present value of their expected net operating revenue which is the future gross revenue minus […]

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6. April 2021 | State Aid Uncovered von Phedon Nicolaides

Lease Contracts and Competitive Selection

State Aid Blogs - cow 2436354 1920

Vague award criteria can be discriminatory and harm the transparency of the selection procedure. Introduction After receiving a complaint, the Commission opened a formal investigation into alleged State aid granted by the Estonian Ministry of Rural Affairs to AS Tartu Agro, a private limited company, which produced milk, meat and cereals. According to the complaint, the Ministry had granted unlawful […]

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30. März 2021 | State Aid Uncovered von Phedon Nicolaides

“Global” Assessment of Tax Schemes

State Aid Blogs - StateAidHub blogpost13 Barcelona

It is incumbent on the Commission to carry out a global assessment of tax schemes. But it must take into account only those provisions of schemes that apply ex ante and do not depend on the circumstances of individual tax payers. Only when aid has to be recovered must the provisions that apply to the specific circumstances of individual tax […]

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23. März 2021 | State Aid Uncovered von Phedon Nicolaides

Exclusive Rights and State Aid

State Aid Blogs - StateAidHub blogpost12 Poste Italiane

Exclusive rights may constitute State aid if they mandate payments with resources over which the state can exercise control. Compensation for the cost of public service obligations may be granted only if the obligations are clear and define a service that is different from market services. Introduction Article 106(1) TFEU requires Member States not to distort competition when they grant […]

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16. März 2021 | State Aid Uncovered von Phedon Nicolaides

The Pan-European Guarantee Fund: The First State Aid Instrument at EU Level

State Aid Blogs - StateAidHub blogpost11 Funds

The Fund managed by the EIB constitutes State aid granted collectively by participating Member States. Introduction One of the many responses of the European Union to the economic harm wreaked by the pandemic was the establishment of the Pan-European Guarantee Fund [the Fund] by the European Investment Bank. Member States were invited to contribute to the Fund. This is both […]

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9. März 2021 | State Aid Uncovered von Phedon Nicolaides

Can the Decision of a Private Entity be Imputed to the State?

State Aid Blogs - StateAidHub blogpost7 Bank Italy

A measure is imputable to the state whenever the state is involved in its adoption or shapes the decision that leads to its adoption. Introduction One of the trickiest aspects of determining whether a financial transaction involves State aid is its attribution or imputation to a decision of the state, especially when the entity providing the funding is private. Private […]

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2. März 2021 | State Aid Uncovered von Phedon Nicolaides

State Aid May be Limited to Undertakings with Close Links with the National Economy (Part II)

State Aid Blogs - StateAidHub blogpost8 9 Ryanair

State aid may be used to compensate airlines licensed by domestic authorities for losses incurred as a result of national travel restrictions. [In case you have missed part I, you can access it here.] Introduction The European Commission acted swiftly to adopt a fairly accommodating and wide-ranging “Temporary Framework” to regulate State aid for the purposes of counter-acting the impact […]

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23. Februar 2021 | State Aid Uncovered von Phedon Nicolaides

State Aid May be Limited to Undertakings with Close Links with the National Economy (Part I)

State Aid Blogs - StateAidHub blogpost8 9 Ryanair

State aid may be used to compensate airlines licensed by domestic authorities for losses incurred as a result of national travel restrictions. Introduction The European Commission acted swiftly to adopt a fairly accommodating and wide-ranging “Temporary Framework” to regulate State aid for the purposes of counter-acting the impact of covid-19. The Temporary Framework was welcomed by both Member States and […]

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17. März 2020 | State Aid Uncovered von Phedon Nicolaides

Has an Economic Myth Become a Legal Fact? The Case of Turnover Taxes

State Aid Blogs - Turnover

Progressive turnover taxes are not contrary to the freedom of establishment or the right of equal treatment. Introduction Recent cases involving “turnover” taxes have sparked a debate in the literature and on the conference circuit not only because they raise novel issues but also because of their implications for other taxes which are being mooted by European governments. As Advocate-General […]

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11. März 2020 | State Aid Uncovered von Phedon Nicolaides

Financial Transactions between the State and Banks with No State aid

State Aid Blogs - StateAidHub blogpost10 state guarantees

Capital injections, state guarantees and loans granted to banks can be free of State aid if they are priced at market rates which reflect the risk borne by the state. Introduction If banks can obtain capital, loans and guarantees from the state at market rates why don’t they go directly to the market? No one has yet given a satisfactory […]

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3. März 2020 | State Aid Uncovered von Phedon Nicolaides

Public Funding of Infrastructure without State Aid

State Aide_Infrastructure

The existence of State aid must be checked at the level of both the direct and indirect beneficiaries who are the owners and users of infrastructure, respectively. If payments to private land owners are to be free of State aid, they must be calculated on the basis of an objective formula that takes into account the size and value of […]

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25. Februar 2020 | State Aid Uncovered von Phedon Nicolaides

Environmental Remediation and State Liability

State Aid Blogs - StateAidHub blogpost8 environmental remediation

Liability assumed by the state for the actions of an undertaking constitutes a selective advantage that may result in potential transfer of state resources in the future. Introduction On 16 January 2020 the General Court delivered its judgment in case T‑257/18, Iberpotash v European Commission.[1] Iberpotash, a Spanish company, appealed against Commission decision 2018/118. Iberpotash owns and operates potash mines […]

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21. Februar 2020 | State Aid Uncovered von Phedon Nicolaides

From Waste to Energy

State Aid Blogs - StateAidHub blogpost7 waste to energy

State aid to incentivise the use of waste to produce energy must be individually notified. Introduction Waste management is an increasingly important aspect of policies aiming to prevent environmental degradation and slow down climate change. As the market for recycling expands and waste management becomes more profitable, there is also a higher risk of harm to competition by State aid. […]

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12. Februar 2020 | State Aid Uncovered von Phedon Nicolaides

An Important (and so far, Unique) Project of Common European Interest

State Aid Blogs - StateAidHub blogpost6 microplastics IPCEI

State aid for important R&D projects of common European interest can cover different costs than the RDI Framework and at different rates of intensity. Introduction Several Member States have demanded a more active industrial policy to counteract perceived unfair foreign competition. The Commission’s response has partly been that current rules do allow cross-border cooperation for the development of innovative products. […]

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4. Februar 2020 | State Aid Uncovered von Phedon Nicolaides

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation

State Aid Blogs - StateAidHub blogpost5 SGEI

The “net avoided cost methodology” takes into account only incremental costs. Introduction The two most difficult issues in the design of State aid measures to support services of general economic interest [SGEI] are the proper definition of the public service obligation [PSO] and the identification of the “counterfactual” on the basis of which the public service compensation [PSC] is calculated. […]

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28. Januar 2020 | State Aid Uncovered von Phedon Nicolaides

State Aid Rules in the UK after Brexit: Alignment or Divergence?

State Aid Blogs - StateAidHub blogpost4 Brexit

The current rules will apply at least until 31 December 2020. Introduction On Saturday, 1 February 2020, the United Kingdom will no longer be a Member of the European Union. Will it then have to abide by EU State aid rules? According to the Agreement on the Withdrawal of the UK from the EU, the whole of the UK will […]

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23. Januar 2020 | State Aid Uncovered von Phedon Nicolaides

Public Subsidies to Households Can Be State aid

State Aid Blogs - m 44

Support for individual borrowers can be indirect State aid to banks. Introduction The fact that a public measure has social objectives and aims to help poor households or disadvantaged persons instead of undertakings does not necessarily remove it from the reach of State aid rules. During the past decade, in response to the economic crisis, a number of Member […]

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14. Januar 2020 | State Aid Uncovered von Phedon Nicolaides

Exclusive Rights and Legal Monopolies

StateAidHub_LegalMonopolies

State aid rules can apply to sectors which are legal monopolies. Introduction The fact that a company enjoys exclusive rights and operates in a sector covered by a legal monopoly does not necessarily insulate it from State aid rules. This has been confirmed by the Court of Justice in its judgment of 19 December 2019, in case C-385/18, Arriva Italia […]

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