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

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
recycle sign
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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4. April 2014  |   State Aid Uncovered von Phedon Nicolaides

Guidance on the Application of Regulation 1370/2007 on Passenger Transport Services
train entering station
Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how […]
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