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

29. Januar 2019 | State Aid Uncovered von Phedon Nicolaides

Services of General Economic Interest: Proper Definition and Avoidance of Overcompensation

State Aid Blogs - StateAidHub Blogpost4 2019 Lexxion Stateaid SGEI Social Housing

Member States need to demonstrate that public service obligations imposed on undertakings are necessary and proportional to the need for public service. A change in the funding of public services does not constitute new aid if it does not alter its objectives, the beneficiaries or the amount of aid by more than 20%. Introduction It is a well-established principle […]

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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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30. November 2017 | State Aid Uncovered von Phedon Nicolaides

The Legal Basis of the (In)compatibility of Aid Must be Clear

State Aid Blogs - m 3 2

The European Commission may withdraw a decision, but before it adopts a new decision it must give an opportunity to interested parties to submit their comments, especially, if it changes the legal basis of the assessment of the compatibility of the aid. Introduction The most frequent reasons for which the Commission finds aid to be incompatible with the internal […]

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21. November 2017 | State Aid Uncovered von Phedon Nicolaides

i) Transfer of State Resources, ii) Non-recovery of Incompatible Aid, iii) Primacy of Agricultural Policy over Competition Policy

State Aid Blogs - 21.11.State resources State control

Private resources that come under the control of a public authority become state resources. The only defence for not recovering incompatible aid is absolute impossibility. Agricultural policy objectives take precedence over those of competition policy. Introduction This article reviews a case involving transfer of state resources and a case concerning failure to recovery of incompatible State aid. It also draws […]

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14. November 2017 | State Aid Uncovered von Phedon Nicolaides

Existing v New Aid

State Aid Blogs - m 4 1

Any alteration of an existing aid measure can affect the substance of the measure itself. A deviation from the conditions of authorisation may turn existing aid into new aid. Alteration or deviation from the conditions of authorisation that affect the compatibility of an existing aid measure, can result in the granting of new aid. A Member State that alters an […]

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7. November 2017 | State Aid Uncovered von Phedon Nicolaides

Indirect v Secondary Effects of State Aid

State Aid Blogs - 07.11.sardinia airport State aid

The prohibition of State aid in Article 107(1) of the Treaty applies both to the direct and indirect beneficiaries of aid. The direct and indirect beneficiaries are those who are intentionally targeted by the aid. Secondary effects are benefits which are inherent in an aid measure and which are not targeted at specific undertakings. Introduction Public funding for the […]

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1. November 2017 | State Aid Uncovered von Phedon Nicolaides

Activities Linked to State Prerogatives

State Aid Blogs - 01.11.17 State aid

Economic activities which cannot be separated from the exercise of public powers cease to be economic in nature. Introduction The dividing line between economic and non-economic activities is in a permanent state of flux. Although it is now clear that some activities fall within the powers and prerogatives of the state, while many others are carried out by the […]

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24. Oktober 2017 | State Aid Uncovered von Phedon Nicolaides

Private Creditor Test

State Aid Blogs - SAH Blog26 GBERd

The Commission must apply the private creditor test even if a Member State does not request it or believes that it is not relevant. Introduction Private investors always have two options: to invest or not to invest. They choose the option that generates the largest amount of profit or revenue. Similarly, private creditors also have two options: call in […]

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17. Oktober 2017 | State Aid Uncovered von Phedon Nicolaides

State Resources and Imputability

State Aid Blogs - 17.10. imputability stateaid

When the state acts in its capacity as legislator it is not presumed to direct the resources of undertakings it owns and over which it can exercise dominant influence as a shareholder. Introduction On 13 September 2017, the Court of Justice replied to a request from a national court to advise it on the concept of state resources [case C‑329/15, […]

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10. Oktober 2017 | State Aid Uncovered von Phedon Nicolaides

Pitfalls in the Use of De Minimis Aid

State Aid Blogs - 05.12.Imputability of Aid State aidz

Calculating de minimis aid according to the average amount of aid received by undertakings is wrong. Introduction It appears that all Member States grant de minimis aid, even though some tend to grant it more easily than others. De minimis aid can be used to subsidise any costs, including those which are not eligible under other State aid rules. The […]

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4. Oktober 2017 | State Aid Uncovered von Phedon Nicolaides

The Necessity and Proportionality of Regional Aid

State Aid Blogs - m 5 1

The Commission must open the formal investigation procedure when it has serious doubts about the compatibility of State aid. The aid that is necessary to induce a company to locate its investment in an assisted region is the amount that covers the difference in costs between the assisted region and the best alternative location. This amount is also proportional. […]

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26. September 2017 | State Aid Uncovered von Phedon Nicolaides

Odysseus and the Sirens: A Rational Market Operator Can Agree to be Bound by the Ruling of an Arbitration Tribunal

State Aid Blogs - m 6 1

A rational market operator can agree to arbitration if there is no reasonable prospect of a better outcome. However, a rational operator would ensure that the terms according to which an arbitration decision can be taken would be defined in advance and would not be prejudicial to the operator. Introduction Is it rational for a market operator to agree […]

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