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

2. Februar 2021 | State Aid Uncovered von Phedon Nicolaides

Helsinki Busses, Loans, Article 93 and Indemnification

State Aid Blogs - StateAidHub blogpost5 Helsinki bus

Bus transportation provided by public authorities constitutes economic activity. Loans given by a public authority to its transport unit have to be priced at market rates. The market value of public assets sold to third parties has to reflect any state indemnities. Temporary Framework The European Commission announced on 28 January 2021 a fifth amendment to the Temporary Framework. [1] […]

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26. Januar 2021 | State Aid Uncovered von Phedon Nicolaides

Training and State Resources

State Aid Blogs - StateAidHub blogpost4 training

The definition of quality indicators and the establishment of certificates of quality do not amount to control by the state over the resources belonging to non-state entities. Introduction Consider the case of a public university which decides to finance the proposal of one of its researchers to launch a research project in collaboration with a private company. For sure the […]

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19. Januar 2021 | State Aid Uncovered von Phedon Nicolaides

Funding of Public Hospitals

State Aid Blogs - StateAidHub blogpost3 Hospitals

Public healthcare provided in accordance with the principle of social solidarity is not economic in nature. Introduction There are two sectors where economic and non-economic activities mix and cause potential State aid problems: healthcare and education. Healthcare and education provided by public institutions do not differ much from healthcare and education provided by private institutions. The critical difference is not […]

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12. Januar 2021 | State Aid Uncovered von Phedon Nicolaides

A First Evaluation of Covid-19 State Aid

State Aid Blogs - StateAidHub blogpost2 Covid

There is a significant variation across Member States in terms of the number of aid measures as well as the amount of aid. Introduction On 17 December 2020, the European Parliament published a report evaluating the impact of State aid to combat covid-19.[1] The report was requested by the committee responsible for economic policy. The report is probably the first […]

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5. Januar 2021 | State Aid Uncovered von Phedon Nicolaides

One Agreement, Two Parallel Systems: Subsidies in the Trade and Cooperation Agreement between the EU and the UK

State Aid Blogs - StateAidHub blogpost1 Brexit

The agreement on subsidies allows the UK to deviate from EU State aid rules. Introduction After the exit of the United Kingdom [UK] from the European Union [EU] on 31 January 2020, EU State aid rules continued to apply to the UK during a transitional period that came to an end on 31 December 2020. In the closing days of […]

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28. Dezember 2020 | State Aid Uncovered von Phedon Nicolaides

The Time Horizon of a Private Investor

State Aid Blogs - StateAidHub blogpost51

A public authority that claims that it invests for the long term, must still prove that its investment is likely to be profitable. Introduction Public authorities may invest in private companies. However, they need to behave as private investors otherwise they confer an advantage that constitutes State aid. In their defence, public authorities claiming that they act as private investors, […]

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21. Dezember 2020 | State Aid Uncovered von Phedon Nicolaides

Attribution to the State does not necessarily Imply Control by the State

State Aid Blogs - towel 1838210 1920 1

Prices fixed by the state do not necessarily confer control to the state over the private resources which are used to pay those prices. Introduction Judging from how many times EU courts have been asked to interpret the concept of state resources, it seems that one of the most difficult aspects of Article 107(1) TFEU is to determine whether funding […]

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15. Dezember 2020 | State Aid Uncovered von Phedon Nicolaides

The Law, Economics and Art of Compensation for Public Service Obligations

State Aid Blogs - post sign 1893086 1920 1

State aid in the form of compensation for public service obligations must exclude any intangible benefits from the obligation, but may include reasonable profit. The Commission guidelines for State aid in agriculture and forestry, the block exemption regulations covering agriculture, forestry, fishery and aquaculture, and the Regulation on de minimis aid for fishery and aquaculture have been prolonged to 31 […]

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8. Dezember 2020 | State Aid Uncovered von Phedon Nicolaides

A Rare Case of Altmark-compliant SGEI (Part II)

State Aid Blogs - container 1638068 1920

For a service to be in the general economic interest, it must be shown to fill a gap in the market or to offer what the market fails to provide adequately. [In case you have missed part I, you can access it here.] Introduction Services of general economic interest [SGEI] are important for the functioning of European societies. However, the […]

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1. Dezember 2020 | State Aid Uncovered von Phedon Nicolaides

A Rare Case of Altmark-compliant SGEI (Part I)

State Aid Blogs - container 1638068 1920

For a service to be in the general economic interest, it must be shown to fill a gap in the market or to offer what the market fails to provide adequately. Introduction Services of general economic interest [SGEI] are important for the functioning of European societies. However, the granting of compensation to an undertaking for the provision of SGEI must […]

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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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7. Januar 2020 | State Aid Uncovered von Phedon Nicolaides

Bail-in Is the Responsibility of Member States

State Aid Blogs - StateAidHub blogpost1 Bail In 2

Commission approval of State aid to bail-out a bank does not give rise to right for compensation for creditors who are bailed-in. Introduction Investors in banks who lost their money have sought compensation both at EU and national level. So far, claims for damages at EU level have been unsuccessful. In some instances, the cases before EU and national courts […]

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