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

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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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 […]

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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

State Aid Blogs - m

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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22. Januar 2019 | State Aid Uncovered von Phedon Nicolaides

The Private Investor Principle in Air Transport – Part II

State Aid Blogs - StateAidHub Blogpost3 2019 lexxion Commission Airport Investment StateAid

Public funds managed by private airport operators can be classified as state resources. Prices charged by airport operators can be used as a benchmark for market prices only if their activities and size are comparable and their costs are not subsidised by State aid. Before a private investor enters into any commercial arrangement, it takes into account all relevant information, […]

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16. Januar 2019 | State Aid Uncovered von Phedon Nicolaides

The Private Investor Principle in Air Transport – Part I

State Aid Blogs - StateAidHub blogpost2 2019 lexxion stateaid airports

Public funds managed by private airport operators can be classified as state resources. Prices charged by airport operators can be used as a benchmark for market prices only if their activities and size are comparable and their costs are not subsidised by State aid. Before a private investor enters into any commercial arrangement, it takes into account all relevant information, […]

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8. Januar 2019 | State Aid Uncovered von Phedon Nicolaides

Justification of a Tax Exemption

State Aid Blogs - StateAidHub blogpost23

Prevention of excessive taxation may justify tax exemption. Prevention of abuse may justify limits to the tax exemption. Introduction A tax exemption may not constitute state aid if it is justified by reasons which are linked to the nature or general scheme of the tax system. This is what the Court of Justice said on 19 December 2018, […]

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21. Dezember 2018 | State Aid Uncovered von Phedon Nicolaides

Infrastructure Projects, State Guarantees and Distortion of Competition

State Aid Blogs - SAH blogpost51 52 stateaid infrastructure guarantees

State guarantees must be limited in duration and amount and the conditions for their mobilization must be defined in advance. Public funding to an operator in a closed sector does not affect trade and, therefore, does not constitute State aid. Introduction Large infrastructure projects are complex, encounter many unforeseen problems and often fall behind schedule for years. Consider, for […]

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18. Dezember 2018 | State Aid Uncovered von Phedon Nicolaides

The Date and Scope of Public Service Compensation

State Aid Blogs - SAH blog50 beneficiaries stateaid public transportation

Aid is deemed to be granted on the date the beneficiary undertaking acquires the legal right to it, regardless of whether it is actually paid on that date. It is not enough for a public authority to define the service that it wants an operator to provide and the price that it should charge. It must also define where and […]

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12. Dezember 2018 | State Aid Uncovered von Phedon Nicolaides

The Challenge of Identifying the Reference Tax System: The Spanish Goodwill Case, Again

State Aid Blogs - SAH blog49 Lexxion tax

To determine whether an aid measure is selective, the treatment of the beneficiaries has to be compared to those undertakings which are in a comparable position. Introduction On 15 November 2018, the General Court ruled in case T-239/11, Sigma Alimentos Exterior v European Commission.1 Sigma Alimentos Exterior (SAE), a Spanish company, appealed against Commission decision 2011/282 which found that […]

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4. Dezember 2018 | State Aid Uncovered von Phedon Nicolaides

The Recovery of Incompatible Aid Cannot be Absolutely Impossible Unless it is first Attempted

State Aid Blogs - SAH blog48 Montessori Lexxion

Introduction In its ruling of 6 November 2018 in cases C‑622/16 P to C‑624/16 P, Scuola Elementare Maria Montessori v European Commission, the Court of Justice made it harder for Member States to escape from their recovery obligations.[1] Montessori appealed against the judgment of the General Court in case T‑220/13, Scuola Elementare Maria Montessori v European Commission. That judgment was reviewed here on […]

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27. November 2018 | State Aid Uncovered von Phedon Nicolaides

Legal Standing of Investors in Failed Banks

State Aid Blogs - m 3

Investors that lodge claims before national courts for damages from resolution of banks have legal standing to request annulment of Commission decisions authorising State aid to those banks. Introduction It is now ten years since the start of the financial crisis. In these ten years, the Commission has adopted about 500 decisions dealing with State aid to banks and other […]

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20. November 2018 | State Aid Uncovered von Phedon Nicolaides

State Aid Provisions in the Draft Agreement on the Withdrawal of the UK from the EU

State Aid Blogs - StateAid Blogpost Brexit EU Lexxion

The agreement on the withdrawal of the UK from the EU requires compliance with EU State aid rules. Introduction On 14 November 2018, EU and UK negotiators finalised the text of the Agreement on the withdrawal of the UK from the EU.[1] The Agreement has to be ratified by the UK and the other 27 Member States. Given immediate […]

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9. November 2018 | State Aid Uncovered von Phedon Nicolaides

Using the Correct Methodology to Calculate Public Service Compensation

State Aid Blogs - stellrweb djb1whucfBY unsplash

Compensation for the extra costs of a public service obligation may include a reasonable profit that reflects the risk borne by the provider of the public service. Introduction The calculation of the amount of compensation for the extra costs of public service obligations can be difficult and tricky. In the absence of such calculation, aid to providers of […]

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