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

State Aid Uncovered ×

Economic Continuity and Recovery of Incompatible State Aid

Incompatible State aid must be recovered from “successor” companies which acquire previously aided companies and enable the latter to continue their operations without any change.     Introduction In this article I review two decisions in which the Commission determined that incompatible aid had to be recovered from “successor” companies. Those were companies which had obtained the assets of the […]

The Perennial Altmark Questions

A SGEI provider does not have to be efficient by industry standards in order to receive compensation for its next extra costs. Although the conditions for compatibility of public service compensation under Article 106(2) TFEU appear to be similar to the Altmark criteria, they have very different objectives.   Introduction Even since the Altmark judgment of July 2003, public authorities […]

Should State Aid that Is Passed on to Consumers Not be Recovered?

Should the amount of recoverable aid be similarly reduced by the amount that is allegedly passed on to consumers? I will argue the case against it.   Introduction On 5 February 2015, the General Court, in cases T-473/12, Aer Lingus v Commission[1] and T-500/12, Ryanair v Commission[2], annulled Article 4 of Commission Decision 2013/199. In that decision the Commission found that a […]

A Primer on Compensation for the Extra Costs of Public Service Obligations Taking into Account Efficiency Gains

When Member States impose PSOs they are never allowed to grant even a single euro in excess of the net extra costs of the PSO. That is prohibited for the simple reason that it results in over-compensation.     Introduction The Lexxion seminar on state aid for transport and transport infrastructure that took place in Brussels on 21-22 September (view […]

The State Acting as a Private Creditor & State Aid Enforcement and Procedural Rights

In this article I review Commission decision SA.37100 on JSC Liepajas Metalurgs [LM], once Latvia’s largest steel company and major employer. The decision examines whether Latvia acted promptly to recover a debt owed to it by a company that faced financial difficulties. The question was whether Latvia acted as a private creditor when it allowed the debtor to continue operations. […]

Airport Infrastructure, Public Remit and the MEOT

A public authority, acting as a private investor, may provide finance which is free of state aid to an airport and at the same time grant state aid to the same airport. Public funding of activities that fall within the exclusive tasks of the state is not state aid. When a public authority defines the activities that fall within the […]

New State Aid Regulations

Regulation 2015/1589 is the new procedural regulation. It lays down the rules for, among other things, notification of state aid, formal investigation, injunctions and recovery of incompatible aid. Because of its importance in the EU system of state aid control, it will be fully reviewed at a forthcoming article. In the Official Journal of 24 September 2015 you will find […]

The Pricing of Access to an Important Project of Common European Interest

Infrastructure that is commercially exploited [e.g. charging of tolls] is an economic activity. Infrastructure that is freely available to users is not economic activity. Access fees or tolls may be regulated. State aid must be necessary and proportional even if access fees are regulated.   Introduction This article examines Commission decision SA.39078 concerning the Fehmarn belt fixed link in Denmark.[1] This […]

Compensation for Public Service Obligations and Compensation for Damage

Compensation for public service obligations is compatible with the internal market when, at minimum, a PSO is well defined in an entrustment constituting an official act of a public authority, the revenues and costs of the PSO are clearly identified and separated from other commercial activities and the compensation does not exceed the net extra costs of the PSO. Compensation […]

Services of General Economic Interest: How to Compensate and Induce more Efficiency

Even traditional monopolists, like postal operators, have to comply with the rules on compensation for the extra costs of public service obligations. SGEI providers can be compensated in a way that induces them to become more efficient.   Introduction This article examines case Commission decision SA.38788 concerning compensation for the UK Post Office Ltd [POL] in the period 2015-18.[1] It is […]

State Aid Uncovered ×

Economic Continuity and Recovery of Incompatible State Aid

Incompatible State aid must be recovered from “successor” companies which acquire previously aided companies and enable the latter to continue their operations without any change.     Introduction In this article I review two decisions in which the Commission determined that incompatible aid had to be recovered from “successor” companies. Those were companies which had obtained the assets of the […]

The Perennial Altmark Questions

A SGEI provider does not have to be efficient by industry standards in order to receive compensation for its next extra costs. Although the conditions for compatibility of public service compensation under Article 106(2) TFEU appear to be similar to the Altmark criteria, they have very different objectives.   Introduction Even since the Altmark judgment of July 2003, public authorities […]

Should State Aid that Is Passed on to Consumers Not be Recovered?

Should the amount of recoverable aid be similarly reduced by the amount that is allegedly passed on to consumers? I will argue the case against it.   Introduction On 5 February 2015, the General Court, in cases T-473/12, Aer Lingus v Commission[1] and T-500/12, Ryanair v Commission[2], annulled Article 4 of Commission Decision 2013/199. In that decision the Commission found that a […]

A Primer on Compensation for the Extra Costs of Public Service Obligations Taking into Account Efficiency Gains

When Member States impose PSOs they are never allowed to grant even a single euro in excess of the net extra costs of the PSO. That is prohibited for the simple reason that it results in over-compensation.     Introduction The Lexxion seminar on state aid for transport and transport infrastructure that took place in Brussels on 21-22 September (view […]

The State Acting as a Private Creditor & State Aid Enforcement and Procedural Rights

In this article I review Commission decision SA.37100 on JSC Liepajas Metalurgs [LM], once Latvia’s largest steel company and major employer. The decision examines whether Latvia acted promptly to recover a debt owed to it by a company that faced financial difficulties. The question was whether Latvia acted as a private creditor when it allowed the debtor to continue operations. […]

Airport Infrastructure, Public Remit and the MEOT

A public authority, acting as a private investor, may provide finance which is free of state aid to an airport and at the same time grant state aid to the same airport. Public funding of activities that fall within the exclusive tasks of the state is not state aid. When a public authority defines the activities that fall within the […]

New State Aid Regulations

Regulation 2015/1589 is the new procedural regulation. It lays down the rules for, among other things, notification of state aid, formal investigation, injunctions and recovery of incompatible aid. Because of its importance in the EU system of state aid control, it will be fully reviewed at a forthcoming article. In the Official Journal of 24 September 2015 you will find […]

The Pricing of Access to an Important Project of Common European Interest

Infrastructure that is commercially exploited [e.g. charging of tolls] is an economic activity. Infrastructure that is freely available to users is not economic activity. Access fees or tolls may be regulated. State aid must be necessary and proportional even if access fees are regulated.   Introduction This article examines Commission decision SA.39078 concerning the Fehmarn belt fixed link in Denmark.[1] This […]

Compensation for Public Service Obligations and Compensation for Damage

Compensation for public service obligations is compatible with the internal market when, at minimum, a PSO is well defined in an entrustment constituting an official act of a public authority, the revenues and costs of the PSO are clearly identified and separated from other commercial activities and the compensation does not exceed the net extra costs of the PSO. Compensation […]

Services of General Economic Interest: How to Compensate and Induce more Efficiency

Even traditional monopolists, like postal operators, have to comply with the rules on compensation for the extra costs of public service obligations. SGEI providers can be compensated in a way that induces them to become more efficient.   Introduction This article examines case Commission decision SA.38788 concerning compensation for the UK Post Office Ltd [POL] in the period 2015-18.[1] It is […]

State Aid Uncovered ×

Economic Continuity and Recovery of Incompatible State Aid

Incompatible State aid must be recovered from “successor” companies which acquire previously aided companies and enable the latter to continue their operations without any change.     Introduction In this article I review two decisions in which the Commission determined that incompatible aid had to be recovered from “successor” companies. Those were companies which had obtained the assets of the […]

The Perennial Altmark Questions

A SGEI provider does not have to be efficient by industry standards in order to receive compensation for its next extra costs. Although the conditions for compatibility of public service compensation under Article 106(2) TFEU appear to be similar to the Altmark criteria, they have very different objectives.   Introduction Even since the Altmark judgment of July 2003, public authorities […]

Should State Aid that Is Passed on to Consumers Not be Recovered?

Should the amount of recoverable aid be similarly reduced by the amount that is allegedly passed on to consumers? I will argue the case against it.   Introduction On 5 February 2015, the General Court, in cases T-473/12, Aer Lingus v Commission[1] and T-500/12, Ryanair v Commission[2], annulled Article 4 of Commission Decision 2013/199. In that decision the Commission found that a […]

A Primer on Compensation for the Extra Costs of Public Service Obligations Taking into Account Efficiency Gains

When Member States impose PSOs they are never allowed to grant even a single euro in excess of the net extra costs of the PSO. That is prohibited for the simple reason that it results in over-compensation.     Introduction The Lexxion seminar on state aid for transport and transport infrastructure that took place in Brussels on 21-22 September (view […]

The State Acting as a Private Creditor & State Aid Enforcement and Procedural Rights

In this article I review Commission decision SA.37100 on JSC Liepajas Metalurgs [LM], once Latvia’s largest steel company and major employer. The decision examines whether Latvia acted promptly to recover a debt owed to it by a company that faced financial difficulties. The question was whether Latvia acted as a private creditor when it allowed the debtor to continue operations. […]

Airport Infrastructure, Public Remit and the MEOT

A public authority, acting as a private investor, may provide finance which is free of state aid to an airport and at the same time grant state aid to the same airport. Public funding of activities that fall within the exclusive tasks of the state is not state aid. When a public authority defines the activities that fall within the […]

New State Aid Regulations

Regulation 2015/1589 is the new procedural regulation. It lays down the rules for, among other things, notification of state aid, formal investigation, injunctions and recovery of incompatible aid. Because of its importance in the EU system of state aid control, it will be fully reviewed at a forthcoming article. In the Official Journal of 24 September 2015 you will find […]

The Pricing of Access to an Important Project of Common European Interest

Infrastructure that is commercially exploited [e.g. charging of tolls] is an economic activity. Infrastructure that is freely available to users is not economic activity. Access fees or tolls may be regulated. State aid must be necessary and proportional even if access fees are regulated.   Introduction This article examines Commission decision SA.39078 concerning the Fehmarn belt fixed link in Denmark.[1] This […]

Compensation for Public Service Obligations and Compensation for Damage

Compensation for public service obligations is compatible with the internal market when, at minimum, a PSO is well defined in an entrustment constituting an official act of a public authority, the revenues and costs of the PSO are clearly identified and separated from other commercial activities and the compensation does not exceed the net extra costs of the PSO. Compensation […]

Services of General Economic Interest: How to Compensate and Induce more Efficiency

Even traditional monopolists, like postal operators, have to comply with the rules on compensation for the extra costs of public service obligations. SGEI providers can be compensated in a way that induces them to become more efficient.   Introduction This article examines case Commission decision SA.38788 concerning compensation for the UK Post Office Ltd [POL] in the period 2015-18.[1] It is […]

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