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

20. Oktober 2015 | State Aid Uncovered von Phedon Nicolaides

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

State Aid Blogs - 10.10. Stateaid deminimis calculator

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 […]

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13. Oktober 2015 | State Aid Uncovered von Phedon Nicolaides

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

State Aid Blogs - StateAidHub blogpost38 saleofbank

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 […]

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12. Oktober 2015 | Guest State Aid Blog von Lexxion Publisher

Courts’s Diary – October 2015

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Any comments on #Stateaid? Get in touch: Stateaidhub[at]lexxion.eu Thursday 01/10/2015 Judgment in Case C-357/14 P – Electrabel and Dunamenti Erőmű v Commission (Court of Justice – Third Chamber) Tuesday 06/10/2015 Judgment in Case C-303/13 P – Andersen v Commission (Court of Justice – Grand Chamber) Thursday 08/10/2015 Hearing in Joined Cases T-479/11 & T-157/12 – France v Commission, […]

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5. Oktober 2015 | State Aid Uncovered von Phedon Nicolaides

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

State Aid Blogs - StateAidHub blogpost14 StateAid Lexxion Money Eu Commission Bank Financial

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. […]

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29. September 2015 | State Aid Uncovered von Phedon Nicolaides

Airport Infrastructure, Public Remit and the MEOT

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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 […]

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25. September 2015 | State Aid Uncovered von Phedon Nicolaides

New State Aid Regulations

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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 […]

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24. September 2015 | Guest State Aid Blog von Gian Marco Galletti

How Reasonable The Private Investor May Be Assumed To Be? Corsica Ferries France

steel construction

The following article summary is a contributory piece by Gian Marco Galletti. The full piece was published in the Common Market Law Review. Galletti is working as a researcher at the Dickson Poon School of Law since 2013. He is currently working on a PhD in European law under the supervision of Prof. Andrea Biondi. He holds an LLB with […]

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22. September 2015 | State Aid Uncovered von Phedon Nicolaides

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

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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 […]

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15. September 2015 | State Aid Uncovered von Phedon Nicolaides

Compensation for Public Service Obligations and Compensation for Damage

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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 […]

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8. September 2015 | State Aid Uncovered von Phedon Nicolaides

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

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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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10. Juli 2014 | State Aid Uncovered von Phedon Nicolaides

The New General Block Exemption Regulation: The Cornerstone of the State Aid Regime, 2014-2020

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The new GBER at a glance Common Provisions: aid must be transparent, must have incentive effect, rules on cumulation, and aid measures and awards must be published. Specific Provisions: Thirteen categories and many types of aid. Exclusions: no export aid, no mandated use of domestic products, no aid to firms in difficulty, no provisions that violate EU law, and no aid to […]

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3. Juli 2014 | State Aid Uncovered von Phedon Nicolaides

Land Development without State Aid

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Activities which are part of the performance of public duties are non-economic in nature [e.g. spatial development]. Public funding of these activities does not constitute State aid. The transfer of resources from one level of government to another is transfer between public authorities and does not constitute State aid. Competitive selected developers obtain no advantage. Purchasers of subsidised assets who pay market prices […]

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25. Juni 2014 | State Aid Uncovered von Phedon Nicolaides

Transparency Is also Needed at the European Commission Level

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As more State aid measures in the future will be granted on the basis of the General Block Exemption Regulation, Member States will have to make the aid they grant more transparent. More transparency should prevent the granting of State aid that is incompatible with the internal market. However, Member States should also be assisted in identifying which public measures may contain […]

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19. Juni 2014 | State Aid Uncovered von Phedon Nicolaides

A JESSICA-Funded Public-Private Partnership

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Public funding of a public-private partnership for the construction and maintenance of public schools may still involve State Aid. State Aid may have an incentive effect even when it is granted to a project that has already started. The funding gap method can demonstrate the necessity and proportionality of State Aid. Introduction This article reviews Commission Decision SA.37168 concerning the construction […]

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12. Juni 2014 | State Aid Uncovered von Phedon Nicolaides

Price Discounts and Compensation for Public Service Obligations: A Case of Questionable Need for Aid

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SGEI can be defined and public service obligations can be imposed only when the market underprovides. The parameters of compensation must be determined in advance. Public service compensation may not exceed the next extra costs of the SGEI or PSO. Member States are free to devise their own method of compensation, but irrespective of the method used, compensation must comply with the basic […]

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4. Juni 2014 | State Aid Uncovered von Phedon Nicolaides

The Cost of not Recovering Incompatible Aid

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The Commission is not obliged to quantify precisely the amount of aid that has to be recovered. The Member State that fails to recover incompatible aid or fails to recover all of it risks legal action against both before national and EU courts. The Commission may initiate infringement proceedings and request the Court of Justice to impose penalties against the failing Member […]

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30. Mai 2014 | State Aid Uncovered von Phedon Nicolaides

The Importance of Precise Definition of Public Service Obligations

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The imposition of a public service obligation must be preceded by market analysis that shows that the market underprovides. For compensation of public service obligations to be compatible aid, it must satisfy the first three Altmark criteria. Surprisingly, the first three Altmark criteria must also be satisfied [in addition to the 4th criterion] for public service compensation in order not to constitute […]

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20. Mai 2014 | State Aid Uncovered von Phedon Nicolaides

Market Operator in Electricity Distribution: Long-term Purchasing Agreements Must Balance Risks and Rewards

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A market operator accepts to be bound in long-term contracts, which entail more risk because market conditions may change, only when he gets compensated with more certainty that costs will remain stable. Contractual clauses which vary from standard commercial practice are suspect. A measure can be selective even when it uses objective criteria to define eligible beneficiaries. Trade can be affected and competition […]

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13. Mai 2014 | State Aid Uncovered von Phedon Nicolaides

The Perils of Ex Post Compensation of Public Services Obligations

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Providers of SGEI must maintain separate accounts. Parameters of compensation must be determined in advance. Ex-post formulation is not in conformity with State aid rules. Ex-post calculation of compensation that covers all costs and eliminates commercial risk is not compatible with State aid rules. Introduction The calculation of the compensation to be offered to providers of services of general economic interest […]

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2. Mai 2014 | State Aid Uncovered von Phedon Nicolaides

The New Guidelines on State Aid for Environmental Protection and Energy, 2014-2020

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The new guidelines are wider in scope: They also cover energy infrastructure, energy capacity and reductions from electricity levies. The new guidelines have higher thresholds for individual notifications. They allow higher aid intensity when aid is granted through competitive bidding. They require more rigorous application of the principles of necessity and proportionality of aid. Introduction In 2012, the latest year for which […]

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