The European Commission applies the market economy investor principle in State aid cases concerning German State owned companies (German Landesbanken Cases)

"Applying the Market Economy Investor Principle to State Owned Companies — Lessons Learned from the German Landesbanken Cases"*Introduction The Market Economy Investor Principle (MEIP) is in the Commission’s practice one of the entry points for economic analysis in State aid cases. Its purpose is to establish the extent to which an aid measure confers an economic advantage on the recipient of the aid. In many cases, determining the size of the economic advantage is fairly straightforward, i.e. for direct subsidies granted to firms. However, often the situation is much less clear. The assessment of the state aid character of a measure is particularly difficult in cases where the State intervenes by means of measures which are comparable to that of private investors, for example by

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Hans W. Friederiszick, Michael Tröge, The European Commission applies the market economy investor principle in State aid cases concerning German State owned companies (German Landesbanken Cases), 20 April 2004, e-Competitions Bulletin Financial services, Art. N° 36851

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