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

The Non-Equivalence of the Various Methods of Supporting Green Electricity

Introduction Ever since the judgment of the Court of Justice in 2001 on PreussenElektra [case C-379/98], Member States have been grappling with the question of how to support electricity from renewable resources [green electricity] without granting State aid. In PreussenElektra the Court found that there was no transfer of state resources and no State aid, because the German government imposed […]

The New Rules on De minimis Aid for 2014-2020: Regulation 1407/2013

Introduction[1] It is appropriate to start this year’s articles on State aid with an appraisal of one of the most important new legislative items for the period 2014-2020: the new de minimis rules. The European Commission adopted the new de minimis Regulation in mid-December and the formal text was published just before Christmas in the Official Journal of 24 December […]

Economically Rational Environmental Aid

Introduction A few months ago I wrote an article on this blog explaining the big puzzle of environmental State aid. Since the rules allow State aid which is only a proportion of the extra costs incurred by companies investing in environmentally friendly technology, it is puzzling why they make this investment. After all, they have the option of not incurring […]

Why Can the Commission Not be Consistent in its Analysis of Economic Activity and Affectation of Trade?

Introduction If you ask a national official who deals with State aid to identify the most challenging aspects of working with State aid rules, the answer is likely to be “the concept of undertaking” and the “effect on trade”. Other aspects can also be challenging, but a national official is unlikely to agonise about the transfer of state resources, the […]

Non-notified State Aid and the Role of National Courts C 284/12, Deutsche Lufthansa v Flughafen Frankfurt-Hahn

Introduction What prevents a Member State from granting State aid without first notifying it to the European Commission? Cynics would answer “nothing, in fact”. Indeed, nothing can stop a country that is determined to provide a subsidy. But after the judgment in case Lufthansa v Frankfurt Hahn Airport, the answer must be “unnecessary hassle”. Even if there is a slight […]

The Private Investor Principle Applied to Loans [Commission Decision 2013/528]

Introduction The State aid issue in this case is relatively straightforward. Nauta, a Polish shipyard, received a two-year loan from IDA, the state-owned Polish Investment Agency. Because Nauta ran into some financial trouble, the loan was extended for another two years. In Decision 2013/528, the Commission had to examine two questions: First, did the initial loan market conform? Second, if […]

How Not to Determine the Effect on Trade [Infrastructure for Tourism, Czech Republic (SA.35909)]

Introduction Normally the articles in this blog identify landmark court rulings and seminal decisions of the Commission which set important precedents and provide useful guidance to State aid professionals and practitioners. This article deviates from this custom. It examines a recent case where the Commission concluded that public subsidies did not constitute State aid because intra-EU trade was not affected. […]

Private Vendor Principle: How to Organise a State-Aid-Free Sale of Public Assets

Introduction   The private investor principle (PIP) or market economy investor principle is well established in the case law. A closely related concept is the private vendor principle (PVP). The PIP applies when a public authority assumes risk by investing in an undertaking, for example through the purchase of shares, injection of capital, granting of a loan or provision of […]

Tax Hypothecation and Economic Efficiency under Altmark: T-275/11, French Television 1 v Commission

Background France Télévisions is a limited company wholly owned by the French State. As France abolished advertising on public television, it also decided to provide financial compensation to France Télévisions. For this reason it introduced new taxes to generate revenue for the compensation: a tax on advertising and a tax on electronic communications. In January 2009, France notified to the […]

A Public Authority Can Behave Like a Private Investor even when the Beneficiary Has Little Prospect of Future Profitability

Introduction When a public authority invests in an undertaking, it must earn a return at market rates, otherwise the investment is State aid. Normally, it is much easier to prove that the investment has a reasonable prospect of profitability and, therefore, that it would be made by a private investor, when the recipient undertaking is in a good financial situation. […]

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