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

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

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 […]

Calculating the Amount of State Aid in a 100% Public Guarantee

The proxy rates in the Commission Notice on Guarantees cannot be used in cases of state guarantees that cover 100% of the underlying loans.   Introduction Last week’s article reviewed the terms of the operation of regional airports in Greece. (View it here). This week’s article continues with the theme of management of public infrastructure and examines Commission decision SA.42545 on […]

Concession Agreements Free of State Aid

Awards of concession contracts should follow a procedure which is open, transparent, non-discriminatory and unconditional. Prices may be regulated to prevent excessive prices and profits. But, the concession fee may be adjusted to enable the concessionaire to earn a sufficient return.   Introduction This article examines the link between State aid and concession agreements. In decision SA.44259, the Commission considered […]

Sale, Liquidation and Other Options for Private Investors

A private investor chooses the less costly option between selling a company at a loss and liquidating it. In addition to avoiding losses, a private investor also cares for its image, quantifies its value and factors it in the sale or liquidation option.   Introduction On 6 July 2017, the General Court ruled in two closely related cases: T-74/14, France […]

Bank Recapitalisation that Conforms to the Market Economy Investor Principle

A public authority acts like a private investor when it injects capital in a stricken bank if there is a realistic prospect of sufficient return that compensates it for the risk it bears.   Introduction Caixa Geral de Depósitos (CGD) is the largest bank in Portugal and is now fully owned by the State. In June 2012, Portugal notified to […]

15th Jubilee Feature – State Aid Experts Paying Court to EStAL: Alexander Rose

Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]

State Aid Is Not Compatible With the Internal Market when it Contravenes other EU Rules

Relief from a penalty imposed by EU rules is State aid that is incompatible with the internal market.   Introduction EU rules contain a standard exclusion: State aid cannot be declared compatible with the internal market when it is non-severable [i.e. cannot be separated] from a violation of EU law. Yet, cases involving non-severable violations of EU law are rare. […]

Exceptions to the Exceptional Nature of State Aid for Banks

State aid for banks can be granted without triggering resolution in cases of precautionary recapitalisation and liquidation.   Introduction A primary objective of the European response to the financial crisis was to sever the link between troubled banks and indebted sovereign. The principle now is that if a bank needs money to meet the capital adequacy ratio required by banking […]

15th Jubilee Feature – State Aid Experts Paying Court to EStAL: Mihalis Kekelekis

Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]

Sale of State-Owned Bank

The sale of a public asset is free of State aid when it is open, transparent, non-discriminatory, unconditional and the award is made to the highest binding and credible offer.   Introduction The rules on State aid to financial institutions and banks have become very strict. Owners and creditors have to be bailed in [the so-called burden sharing] and the […]

New Video: What can I do if my measure contains 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!   After Phedon Nicolaides has given us examples of „good aid“, today he answers the question „What can I do if my measure contains State aid?“. View the […]

State Aid Rules and Transfer Pricing

Tax rulings on transfer pricing have to approximate market-based outcomes.   Introduction Twenty years ago, the European Commission initiated discussion on how State aid rules could apply to direct taxation. In 1998 it adopted its Notice on direct business taxation. At about the same time the Commission launched several formal investigations which culminated in negative decisions. In 2013 and 2014, […]

New Video: If you want to learn more about State aid issues…

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!   7 weeks ago we started our new State aid journey on YouTube and thank you for viewing our videos, commenting and subscribing to our channel! Today […]

Compatible State Aid May Have Negative Effects on some Market Operators

The existence of market failure is not necessary for aid to be declared compatible under Article 107(3). Market failure does not mean that the market is completely unable to supply a good or service. State aid aiming to remedy market failure may be compatible with the internal market even if it has a negative impact on some market operators.   […]

New Video: Which types of State aid are compatible with the internal market?

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!   Last week Phedon Nicolaides gave examples of „good aid“. Today he explains which types of State aid are compatible with the internal market, such as environmental aid, regional development […]

State Aid to Electricity Intensive Users

The risk of relocation outside the EU is not accepted as a justification for the granting of State aid.   Introduction The European Commission has had to assess many measures of State aid to producers of electricity from renewable energy sources [RES producers or “green” electricity producers] and to intensive users of electricity [EIUs]. The former have benefitted from investment […]

New Video: When Is State Aid Allowed and What Is „Good 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!   Last week Phedon Nicolaides gave „Practical Examples of State aid“, today he addresses the question „What type of aid is allowed?“. This aid is called „good aid“. […]

State Aid Modernisation: First Results

There has been an impressive increase in the use of the General Block Exemption Regulation. However, Member States still notify measures which are acknowledged by the Commission with “comfort letters”.   Introduction[1] In May 2012, the European Commission launched its State Aid Modernisation [SAM] initiative. After two years of consultations with the Member States, a set of new State aid […]

New Video: Practical Examples of 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!   After answering the question „Who can grant State aid?“ last week, Phedon Nicolaides today gives you some practical examples of State aid such as subsidies by public authorities, […]

PART II: Combining Infrastructure Aid with SGEI Aid

After the spontaneous words on Brexit and State aid last week, I continue with the 2nd part of the post on infrastructure and SGEI today. A provider of services of general economic interest may receive both investment aid and compensation for the extra costs of public service obligations.   Part II: SGEI[1] Member States are free to determine the services […]

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