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

21. Dezember 2020 | State Aid Uncovered von Phedon Nicolaides

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

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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

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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)

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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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24. November 2020 | State Aid Uncovered von Phedon Nicolaides

De Minimis Aid

processed wood

If different awards of de minimis aid bring the total amount over the ceiling of EUR 200,000, Member States may withdraw aid already granted or reduce the amount of aid that is scheduled to be granted or simply refuse to grant aid so as to ensure that the total remains below the ceiling for any three-fiscal year period. Introduction A […]

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10. November 2020 | State Aid Uncovered von Phedon Nicolaides

What is the Value of Informal Commission Communications?

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An official’s statement can be imputed to his authority if it can be reasonably assumed that the official speaks on behalf of the authority. Introduction It is often asked by national officials how much credence they should give to assurances by Commission officials in the absence of a formal Commission decision and what is the legal value of such assurances. […]

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3. November 2020 | State Aid Uncovered von Phedon Nicolaides

The Concept of SME, Indirect Control by Public Bodies and New Problems for Public Universities and Research Organisations

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I am grateful to Peter Staviczky for comments on an earlier draft. A company that is owned by more than 25% by public bodies is not considered to be an SME, regardless of whether those public bodies actually exercise direct or indirect control. A public university can be a public body. Temporary Framework Update: Number of approved and published covid-19 […]

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3. November 2020 | State Aid Uncovered von Phedon Nicolaides

Evaluation of EU State Aid Rules: Need for Greater Transparency

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On Friday, 30 November 2020, the European Commission published a Staff Working Document [SWD(2020) 257 final] presenting and assessing the results of the evaluation of the main State aid rules of the EU. The SWD explains the aims of the State Aid Modernisation [SAM] that was launched in 2012 and summarises the findings of the Fitness Check of the GBER, […]

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27. Oktober 2020 | State Aid Uncovered von Phedon Nicolaides

The Common European Interest and the Environmental Impact of State Aid: The Case of Nuclear Power

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I am grateful to Peter Staviczky for comments on an earlier version. The possible negative impact of State aid on the environmental is taken into account when the aid measure violates directly the relevant EU law. The Commission protects the interests of other Member States by ensuring that the negative effects of State aid are kept to the minimum possible. […]

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20. Oktober 2020 | State Aid Uncovered von Phedon Nicolaides

Employees’ Social Security Contributions and Compensation for Damage

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Fiscal benefits to employees do not constitute State aid as long as they do not confer a direct or indirect advantage to their employers. Update on Temporary Framework: Number of approved and published Covid-19 measures, as of 16 October 2020: 302* Legal basis: Article 107(2)(b): 32; Article 107(3)(b): 255; Article 107(3)(c): 23 Average number of measures per Member State: 11 […]

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27. Dezember 2019 | State Aid Uncovered von Lexxion Publisher

5 Most Read Articles on StateAidUncovered in 2019

State Aid Blogs - 5 most read articles 2019

Groundbreaking judgments like “Eesti Pagar”, applications of the private investor principle in air transport or questions of interpretation of the GBER besides many more, have moved and shaped this year’s judgments on State aid. Also Brexit and its meaning for State aid control in the UK has still been on everyone’s mind. See which articles by Prof. Phedon Nicolaides were […]

3 Kommentare

23. Dezember 2019 | State Aid Uncovered von Phedon Nicolaides

A Preferential Electricity Tariff Is Selective, Confers an Advantage and Distorts Competition

State Aid Blogs - StateAidUncovered blogpost53 Alouminion

A judicial decision on interim measures is a selective measure. The private investor test does not apply to judicial decisions on interim measures. Introduction On 11 December 2019, in case C‑332/18 P, Mytilinaios Anonymos Etairia — Omilos Epicheiriseon v European Commission, the Court of Justice probably wrote the last chapter in a long-running case concerning privileges that had been granted […]

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17. Dezember 2019 | State Aid Uncovered von Phedon Nicolaides

Can a Tax (rather than a Tax Exemption) Confer a Selective Advantage?

State Aid Blogs - StateAidHub blogpost52 Stateaid Lexxion TAX Water Spain European Commission

A tax that is levied at one level of government and does not apply to products and activities at a different level of government need not be selective. Introduction A tax exemption normally confers a selective advantage, unless it is justified by the logic of the tax. Counterintuitively, a tax itself can be selectively advantageous if its scope is too […]

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10. Dezember 2019 | State Aid Uncovered von Phedon Nicolaides

Retroactive Application of the GBER

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When an aid scheme is adjusted by limiting the eligible beneficiaries, it becomes “new” aid and must be notified to the Commission. The GBER can be applied retroactively to aid that was granted before it came into force. Introduction In July 2016, Dilly’s Wellnesshotel wrote legal history for being the first undertaking to contest the application of the General […]

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5. Dezember 2019 | State Aid Uncovered von Phedon Nicolaides

Will Brexit Usher in Protectionism?

State Aid Blogs - StateAid Blogpost Brexit EU Lexxion

The Financial Times reported on Friday, 29 November 2019, that the Conservative party in the UK announced that it would establish a different state aid system to “protect British industry after Brexit”. The Prime Minister, Boris Johnson, was quoted to have said at a press conference on the same date that the new state aid system would make it “faster […]

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3. Dezember 2019 | State Aid Uncovered von Phedon Nicolaides

Separability of Economic from Non-economic Activities

State Aid Blogs - StateAidHub blogpost50 2019 lexxion economy printing non economic Stateaid SGEI

Activities which are inseparable from the exercise of official powers are non-economic. Introduction Pure research whose results are widely disseminated is undoubtedly a non-economic activity. Research reports are often published on the internet. But the design and management of a research organisation’s website can be an economic activity. Plenty of private companies provide these services for a fee. Does […]

2 Kommentare

26. November 2019 | State Aid Uncovered von Phedon Nicolaides

How to Assess a Shareholder Loan

State Aid Blogs - StateAidHub blogpost49 shareholder loan MEOP

A shareholder loan cannot be simply compared to a bank loan because the shareholder also benefits from improvements in the future profitability of the borrower. Introduction When a public authority grants a loan to a company, the methodology in the 2008 Commission communication on reference and discount rates can be used to determine whether the loan contains State aid. However, […]

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19. November 2019 | State Aid Uncovered von Phedon Nicolaides

Compensation to a Toll Road Operator

State Aid Blogs - StateAidHub blogpost48 toll road motorways Poland obligations StateAid

Contractual obligation to provide compensation that does not exceed the loss of income is not State aid. Introduction When is a company entitled to compensation by the state? The easy answer is “when the state is liable for damage”. However, it may be possible for a company to claim compensation from the state when the state has assumed contractual obligations. […]

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14. November 2019 | State Aid Uncovered von Phedon Nicolaides

Risk Finance

State Aid Blogs - StateAidHub blogpost47 Finance lexxion GBER SMEs

Risk finance measures for the support for large enterprises or SMEs which operate for longer than seven years fall outside the GBER and must be notified individually to the Commission. Introduction Since the State aid modernisation and the new rules that were introduced in 2014, only a handful of risk finance measures [7-8?] have been notified to the European Commission […]

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5. November 2019 | State Aid Uncovered von Phedon Nicolaides

Economic Continuity in Recovery of Incompatible State aid

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The new owner of a company that received incompatible State aid may be liable to pay it back. Introduction Companies rarely escape from the obligation to repay incompatible State aid. Over the past decade or so, very few companies have successfully argued that they legitimately expected that the aid they received was compatible with the internal market. When a […]

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