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

Court’s Diary – March 2017

Find below the court’s diary for all State aid cases this month. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog.   Wednesday 01/03/2017Judgment in Case T-167/14 – France v Commission (General Court – Sixth Chamber)Judgment in Case T-454/13 – SNCM v […]

State Aid for R&D: What Is Research?

Adapting know-how for the needs of clients is not research. Aid for projects for which there is no demand is not in the common interest.   Introduction The purpose of research is to discover something new. But what is often difficult to define for public authorities that wish to stimulate more research activities is how new must be the outcome […]

State Aid for R&D: How Intermediaries Pass on Aid to Third Parties

Operators of research infrastructure do not benefit from State aid, if they fully pass on the aid to the users of the infrastructure. The amount of aid must be quantified. Introduction The beneficiaries of State aid to support R&D are normally those who carry out research. However, in the case of aid to research infrastructure there may be two categories […]

How to Calculate a Transparent Amount of State Aid in Public Guarantees

State aid granted in the form of public guarantees is transparent aid when it is calculated according to the methodology of the 2008 Commission notice or a methodology that is notified to and approved by the Commission.   Introduction Aid to farmers, small enterprises or revenue-generating projects is often given in the form of state guarantees. This is because what […]

The Scope of Public Service Obligations

Public service obligations may cover both profitable and unprofitable segments of the market.   Introduction 18 January 2017, the General Court delivered its judgment in case T-92/11 RENV, Jørgen Andersen, v European Commission.[1] Mr Andersen appealed against Commission Decision 2011/3 which concluded that public service contracts between the Danish Ministry of Transport and Danske Statsbaner [DSB], the incumbent train operator, contained […]

Financial Cooperatives

National courts may not question Commission decisions but they may ask the Court of Justice for guidance on how to interpret Commission decisions. Protection of shareholders of a particular category of companies is a selective measure. Introduction This is the last article dealing with the judgments that were rendered by EU courts on 21 December 2016. This article reviews the reply […]

Selectivity Stretched

Derogations that result in different tax treatment are selective measures. Introduction On 21 December 2016, the Commission achieved an important legal victory when the Court of Justice found in its favour in the judgment in joint cases C‑20/15 P and C‑21/15 P, Commission v World Duty Free Group [formerly Autogrill España] and Commission v Banco Santander, respectively.[1] The Commission appealed […]

Part II: Developments on the Concepts of Advantage and Selectivity

The advantage conferred by State aid is not necessarily equivalent to the economic benefit that is eventually enjoyed by aid recipients. Incompatible State aid has to be repaid regardless of whether it is passed on to the customers of the aid recipients. Undertakings derive an advantage when state intervention reduces the costs they would bear under “normal market conditions” whereby […]

Developments on the Concepts of Advantage and Selectivity

The advantage conferred by State aid is not necessarily equivalent to the economic benefit that is eventually enjoyed by aid recipients. Incompatible State aid has to be repaid regardless of whether it is passed on to the customers of the aid recipients. Undertakings derive an advantage when state intervention reduces the costs they would bear under “normal market conditions” whereby […]

Public Service Obligations and Award for Damages

Providers of public services must keep separate accounts. The parameters for calculating the compensation for the extra costs of public services must be determined in advance. Awards for damages do not constitute State aid. However, no damages can be awarded as a substitute for incompatible State aid.   Introduction It is often asked how compensation measures for public service obligations […]

New Video: What is State aid?

What is State aid? Why do I need to be concerned about State aid? These and many more basic questions will be answered in our videos on YouTube. Make sure to visit us!   Today Phedon Nicolaides answers the question “What is State aid?”, explaining the four criteria by case law & treaty. View now, comment and subscribe to our […]

PART I: Combining Infrastructure Aid with SGEI Aid

A provider of services of general economic interest may receive both investment aid and compensation for the extra costs of public service obligations.   Introduction Governments normally support large infrastructural projects through guarantees. This is because such projects have a long life, the initial investment costs are very high and the recoupment of investment takes place over a long period […]

New Video: Why Should Public Authorities Be Concerned About State Aid?

What is State aid? Why do I need to be concerned about State aid? These and many more basic questions will be answered in our videos on YouTube. Make sure to visit us!   Today Phedon Nicolaides tells you, why public authorities should be concerned about Stateaid. Please comment and subscribe.    Visit our YouTube Channel and show all videos. You […]

Beneficiaries and Benefits of State Guarantees

A state guarantee is presumed to lower borrowing costs. However, any other benefits in relation to customers or suppliers have to be proven.   Introduction On 26 May 2016, the General Court rendered its judgment in case T-479/11, France v Commission concerning the IFP.[1] France appealed against Commission decision 2012/26 which found that France granted aid to IFP. IFP iIFP s […]

Sport Facilities, the Balancing Test and Distortion of Competition

Aid measures that target persons with particular needs and who are not adequately provided by the market are not likely to be found to distort competition contrary to the common interest, even if there is some substitutability between the subsidised services and similar services provided by the market on commercial terms.   Introduction In August 2011, the Commission received a […]

Support for Green Electricity: State Resources and “PreussenElektra”

Arrangements established by law whereby undertakings are compensated for any extra payments they make to producers of green electricity are likely to bring those payments under the control of the state. Those payments will then be classified as state resources regardless of whether they are managed by private entities.   Introduction On 10 May 2016, the General Court issued its […]

Tax Exemptions Authorised by the Council of the EU

State aid is an objective concept. When the Commission assesses a measure it has to examine its effects and cannot be bound by a decision of the Council. A beneficiary of State aid cannot entertain legitimate expectations simply because the Commission does not appear to object to the aid.   Introduction On 22 April 2016, the General Court rendered its judgment […]

PART II: Regional Development and i) Market Economy Operator Test ii) Services of General Economic Interest

A market economy operator undertakes activities whose incremental revenue exceeds their incremental costs. A market economy operator ignores costs which are unaffected by those activities. A service of general economic interest has special characteristics that set it apart from other services with positive impact on the economy. Having a positive impact is not enough.   Part II: Public tasks and […]

PART I: Regional Development and i) Market Economy Operator Test, ii) Services of General Economic Interest

A market economy operator undertakes activities whose incremental revenue exceeds their incremental costs. A market economy operator ignores costs which are unaffected by those activities. A service of general economic interest has special characteristics that set it apart from other services with positive impact on the economy. Having a positive impact is not enough.   Introduction National and regional authorities […]

Calculation of State Aid in Guarantees

State guarantees can be used to support loans for working capital. The amount of State aid in guarantees can be calculated to remain below the de minimis threshold of EUR 200,000.   Introduction With financial instruments being very much in vogue, there is much interest in the use of guarantees and loans as a means of granting State aid. Therefore, […]

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