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

19. Januar 2016 | State Aid Uncovered von Phedon Nicolaides

Is there an Advantage when the State Pays for Compulsory Milk Tests?

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Undertakings obtain an advantage when the state pays for their normal costs. Normal costs are costs which are inherent in the operations of undertakings. The costs of meeting legal obligations are normal. Introduction The case law on advantage in the meaning of Article 107(1) TFEU says that aid confers an advantage to undertakings when they obtain a benefit that […]

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12. Januar 2016 | State Aid Uncovered von Phedon Nicolaides

Valuation of Assets Disposed by the State

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The value of an asset can be determined according to different methods. The main methods examine future income or comparable transactions or stock market valuation. Agreements between sellers and buyers that contain indemnification clauses or settle past claims do not reflect the true market value of the sold asset. Introduction 9 December 2015, the General Court rendered its judgment […]

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5. Januar 2016 | State Aid Uncovered von Phedon Nicolaides

An Exception Is Not Necessarily Selective: The Case of the Spanish Tax Lease [1]

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An exception from a tax system is not selective if it is a priori open to any tax payer. Checks by tax authorities to ensure that a measure is applied correctly do not constitute exercise of administrative discretion that may render a measure de facto selective. The impact of a measure on trade and competition cannot be merely presumed just […]

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1. Januar 2016 | Guest State Aid Blog von Lexxion Publisher

Court’s Diary – January 2016

Judge gavel with law books

Find below the court’s diary for all State aid cases. 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. Thursday 28/01/2016 Judgment in T-507/12 -Slovenia v Commission (General Court – Fifth Chamber) Do you know we also publish […]

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29. Dezember 2015 | State Aid Uncovered von Phedon Nicolaides

Regional Aid to Car Manufacturers – Part II

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This is the second part of the article that was published last week. Regional aid, like all State aid, must be necessary and proportional. Regional aid is necessary when investment in an assisted region is more costly. Regional aid is proportional when it does not exceed the amount which can make the investment sufficiently profitable or offset the cost disadvantage […]

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23. Dezember 2015 | State Aid Uncovered von Lexxion Publisher

Top 5 Most Read State Aid Uncovered Posts of the Year

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Questions around Altmark, the Market Economy Investor Principle, the granting of De Minimis aid and many more have moved and shaped this year’s judgments on State aid. See which articles by Prof. Phedon Nicolaides were the most popular ones in 2015. With the approach of the end of the third year of Prof. Nicolaides’ blog State Aid Uncovered, we […]

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22. Dezember 2015 | State Aid Uncovered von Phedon Nicolaides

Regional Aid to Car Manufacturers

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Regional aid, like all State aid, must be necessary and proportional. Regional aid is necessary when investment in an assisted region is more costly. Regional aid is proportional when it does not exceed the amount which can make the investment sufficiently profitable or offset the cost disadvantage of investment in an assisted region. Introduction In July 2014, the European […]

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14. Dezember 2015 | State Aid Uncovered von Phedon Nicolaides

Altmark, again!

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Sectoral regulation is not the same as definition of public service obligation. Aid that favours a certain technology is incompatible with the internal market, unless it can be objectively justified. Introduction “Altmark” has become a permanent feature in the landscape of State aid. Its application was again one of the main issues of contention in six judgments rendered by […]

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

Top 3 State Aid Blog Posts from 2015

fireworks

From Amazon’s ‘advance pricing agreement’ over State aid to the Hungarian electricity market to Black Cabs’ exclusive rights in London, our guest bloggers on the StateAidHub have shed light on various controversial State aid judgments and developments. View now the most popular posts of 2015. As 2015 and therefore the StateAidHub’s first year draws to a close, we thank […]

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8. Dezember 2015 | State Aid Uncovered von Phedon Nicolaides

i) New v Existing State Aid ii) Exemption from VAT and Attribution to Member States iii) The Duty of National Courts to Protect Competitors from Illegal State aid

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Aid that pre-exists the entry of a Member State into the EU is “existing” and does not have to be recovered. VAT exemptions authorised by the EU are not State aid. National courts must disregard national legal provisions that prevent them from acting against illegal aid. Introduction This article examines a variety of issues: when State aid is existing […]

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19. Juni 2014 | State Aid Uncovered von Phedon Nicolaides

A JESSICA-Funded Public-Private Partnership

construction site

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

school busses

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

Flag of Spain

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

ship

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

electricity wires

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

bus

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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25. April 2014 | State Aid Uncovered von Phedon Nicolaides

A Textbook Case of False Arguments: T-150/12, Greece v Commission

court building

Recipients of State aid obtain an advantage even if they do not succeed to improve their position on the market. Recipients of State aid obtain an advantage whenever their competitors in intra-EU trade do not receive the same aid from the same source. Even small amounts of aid can disturb intra-EU trade where there is strong cross-border competition. The European Commission is not […]

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22. April 2014 | State Aid Uncovered von Phedon Nicolaides

Two Judgments: a) Unlimited State Guarantees and b) The Discretion of the Commission in Restructuring Measures

gavel

Unlimited state guarantees are never compatible with the internal market. The existence of an unlimited guarantee and its benefits can be inferred from the relevant legal context in which the state assumes certain obligations towards creditors. The Commission may impose both structural and behavioural remedies on recipients of restructuring aid These remedies may cover sectors other than the main sector in which […]

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14. April 2014 | State Aid Uncovered von Phedon Nicolaides

The Importance of a Correct Framing of the Private Creditor and Private Investor Tests

people in backlight

A public authority acting as private creditor must exhaust all legally available means of recovering money owed to it. A private creditor may agree to an amicable arrangement – depending on the complexity and duration of legal proceedings, the value of the collateral it holds and the chances of long-term viability of the debtor – if it results in repayment of […]

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