State aid and privatisation

State Aids

The EU Court of Justice establishes that the privatisation of the Austrian bank has not been carried out in the light of the private investor in a market economy principle (GRAWE)
College of Europe (Bruges)
Article published on Lexxion State Aid Blog 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 (...)

The EU Court of Justice confirms prior State aid cannot be taken into account by public authority to justify further subsidies as market behaviour (Land Burgenland)
Unilever (Brussels)
,
Jones Day (Brussels)
In its recent judgment in Land Burgenland (Joined Cases C-214/12 P, C-215/12 P and C-223/12 P) the Court of Justice of the European Union (CJEU) has confirmed that compatible State aid granted to an undertaking in the past must not be taken into account in the context of the Market Economy (...)

The EU Court of Justice applies "private vendor" test and upholds Commission’s approach on the incompatibility of a state aid for the privatisation of an Austrian bank (GRAWE)
European Procurement Law Group
Maybe not such a global appraisal of State aid after all: CJEU backtracks from a truly economic approach (C-124/10)* In an interesting recent paper, Pablo Ibáñez Colomo conducts a very detailed statistical overview of State Aid Litigation before EU Courts (2004–2012) Journal of European (...)

The EU General Court rules that a measure designed to offset a structural disadvantage is still State aid (BT Pension Scheme)
College of Europe (Bruges)
Article published on Lexxion State Aid Blog. The Offsetting of a Structural Disadvantage Is still State Aid* Introduction Normally it is conceptually and technically fairly easy to determine whether an undertaking benefits from a public measure. However, this task becomes considerably more (...)

The EU Commission decides that the privatisation process of an airport in Portugal does not constitute state aid (ANA)
College of Europe (Bruges)
Article published on Lexxion State Aid Blog. Privatisation of Aeroportos de Portugal: Conflict between the National Economic Adjustment Programme and State Aid Rules?* Background Portugal notified to the Commission the privatisation of the “Aeroportos de Portugal” [ANA] for reasons of legal (...)

The EU Commission finds that the conversion of almost worthless debt into equity was a preferable solution for a market economy investor in the aircraft industry (Sonaca)
College of Europe (Bruges)
Article published on Lexxion State Aid Blog 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 (...)

The EU Commission decides that the application of the VPS method for the valuation of agriculture and forestry land does not confer an advantage on the purchaser (BVVG)
College of Europe (Bruges)
Article published on Lexxion State Aid Blog An “Alternative” Method of Valuation for State-Aid-Free Sale of Public Land* The obligation of the state to act as a private vendor When a public authority sells an asset to an undertaking, it must sell it at the market price. The case law is clear (...)

The EU Commission decides that the sale of a state owned airlines company does not amount to state aid (LOT Polish Airlines)
College of Europe (Bruges)
Article published on Lexxion State Aid Blog Sale of State-owned Airlines* Introduction In the previous posting I examined the funding of a regional airport. In this posting I look at a case concerning an airline; more specifically, the sale of three subsidiaries of Polish airline LOT. (...)

The EU General Court annuls the Commission’s decision by which it approved all of the measures adopted by France in favour of Corsica ferries (Corsica Ferries France)
Mircea & Partners (Bucharest)
A. Essential factual and legal aspects The shipping company, Corsica Ferries France SAS, applicant in the present dispute, offers regular ferry services to Corsica departing from continental France (Marseille, Toulon and Nice) and Italy. The shipping company and beneficiary of the aid measure (...)

The EU General Court confirms the EU Commission’s decision ruling that the Province of Burgenland had granted State aid which was not compatible with the common market (Land Burgenland and Republic of Austria)
Trummer & Thomas
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Trummer & Thomas
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Borealis
I. Introduction On 28 February 2012 the General Court confirmed the European Commission’s (“Commission”) decision of 30 April 2008 and ruled that the Province of Burgenland had granted State aid to Grazer Wechselseitige Versicherung AG (“GRAWE”) which was not compatible with the common market. (...)

The European Commission closes formal investigation procedure on state aid granted by Poland to company specialized in civil and military aviation hydraulics (PZL Hydral)
European Commission - DG COMP (Brussels)
"State aid: main developments between 1 May and 31 August 2010"* The Commission has closed on 4 August 2010 the formal investigation procedure on state aid to PZL Hydral, a company which was specialised in civil and military aviation hydraulics. The Commission had concerns that the original (...)

The European Commission conditionally approves State aid package and restructuring of European financial services group (Dexia)
Université Libre de Bruxelles (ULB)
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Credit Agricole
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European Commission - DG COMP (Brussels)
"The Dexia restructuring decision"* On 26 February 2010, the Commission took a final, conditional decision approving the State aid package to, and the restructuring of, Dexia SA (‘Dexia‘), which benefited from a large State aid package. This conditional decision follows an in-depth investigation (...)

The European Commission authorises State aid granted by Poland for restructuring shipyard (Gdansk Shipyard)
European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
"Restructuring of Gdansk Shipyard — outlook good for return to viability after four-year investigation"* On 22 July 2009, the Commission authorised State aid granted or planned by Poland for restructuring Gdansk Shipyard. The Commission found that both the € 94 million of aid already received by (...)

The European Commission rules on the limits to the application of Article 296 and indemnification provision in privatisation contracts (Hellenic Shipyards)
European Commission - DG COMP (Brussels)
"The Hellenic Shipyards decision: Limits to the application of Article 296 and indemnification provision in privatisation contracts"* On 2 July 2008, the Commission closed its investigation concerning 16 state measures implemented in favour Hellenic Shipyards S.A. (‘HSY‘) by ordering Greece to (...)

The European Commission considers that the privatisation of publicly owned Austrian bank constitutes a State aid incompatible with EC State aid rules (Bank Burgenland)
DG REGIO Regional and urban policy
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European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
"State aid issues in the privatisation of public undertakings - Some recent decisions"* I. Introduction The general definition of State aid is set out in Article 87(1) of the EC Treaty, which prohibits ‘…any aid granted by a Member State or through State resources in any form whatsoever which (...)

The European Commission considers that the privatisation of Romanian tractor producer does not constitute a State aid (Tractorul)
DG REGIO Regional and urban policy
,
European Commission - DG COMP (Brussels)
,
European Commission - DG COMP (Brussels)
"State aid issues in the privatisation of public undertakings - Some recent decisions"* I. Introduction The general definition of State aid is set out in Article 87(1) of the EC Treaty, which prohibits ‘…any aid granted by a Member State or through State resources in any form whatsoever which (...)

The European Commission considers that the privatisation of an automobile company controlled by the Romanian State constitutes a State aid incompatible with EC State aid rules (Automobile Craiova)
DG REGIO Regional and urban policy
,
European Commission - DG COMP (Brussels)
,
European Commission - DG COMP (Brussels)
"State aid issues in the privatisation of public undertakings - Some recent decisions"* I. Introduction The general definition of State aid is set out in Article 87(1) of the EC Treaty, which prohibits ‘…any aid granted by a Member State or through State resources in any form whatsoever which (...)

The French Administrative Supreme Court concluded to absence of State aid in case of an open and non-discriminatory tendering privatisation procedure (CIC/SG-BNP-CCF)
European Court of Justice (Luxembourg)
French Administrative Supreme Court (Conseil d’État, Assemblée), 18 December 1998, Société Générale, Banque Nationale de Paris, Crédit Commercial de France v. Ministre de l’économie, des finances et de l’industrie, Case n° 197175 The liberalization of the bank sector in the European Union initiated (...)

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