Phedon Nicolaides

College of Europe (Bruges)
Professor

Professor Phedon Nicolaides has been educated in the United States, the Netherlands and the United Kingdom. He has a Ph.D. in economics and a PhD in law. He is professor at the College of Europe in Bruges, and has previously held academic positions at the London Business School, the Royal Institute of International Affairs (London) and the European Institute of Public Administration (Maastricht). He is currently senior fellow at Maastricht University. He has also gained experience in government as Minister Plenipotentiary in the Cyprus Ministry of Foreign Affairs and in the private sector as Secretary General of the Cyprus Shipping Council. During the negotiations of Cyprus for accession to the EU he was advisor to the Cyprus Chief Negotiator. He has acted as consultant to a number of public authorities in various EU Member States and to international institutions and organisations such as the European Commission, the European Investment Fund, the European Economic and Social Committee, the OECD and the UN. He has published extensively on European integration, competition policy and state aid, and policy implementation. He is also on the editorial boards of several journals.

Contact

505 | Conferences

Articles

38238 Bulletin

Phedon Nicolaides The EU Court of Justice decides that an exclusive right that provides selective advantages through State resources and distorts competition and trade between Member States is a State aid (Poste Italiane)

49

Exclusive Rights and State Aid* Exclusive rights may constitute State aid if they mandate payments with resources over which the state can exercise control. Compensation for the cost of public service obligations may be granted only if the obligations are clear and define a service that is (...)

Phedon Nicolaides The EU Court of Justice rejects the appeal brought by the Commission against the General Court’s decision concerning the measures adopted by Italian banks to support one of its members (Banca popolare di Bari)

143

Can the Decision of a Private Entity be Imputed to the State?* Introduction One of the trickiest aspects of determining whether a financial transaction involves State aid is its attribution or imputation to a decision of the state, especially when the entity providing the funding is private. (...)

Phedon Nicolaides The EU Court of Justice annuls the General Court’s decision which ruled that the Greek authorities should have known about the State aid public loan when there was no proof that they were aware of it (Larko)

94

Advantage Must be Proven, Not Assumed* Introduction When a company gets into financial trouble, public subsidies may provide a temporary respite but hardly ever a permanent solution if the company does not undertake painful restructuring. More than 10 years ago, Larko, a Greek mining (...)

Phedon Nicolaides The EU General Court dismisses in its entirety the action made by a company in the potash mines sector and confirms the existence of aid measures (Iberpotash / EU Commission)

53

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice confirms that a company does not necessarily insulate from State aid if it enjoys exclusive rights and operates in a sector covered by a legal monopoly (Arriva Italia)

113

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice dismisses an appeal by the beneficiary of an aid concluding that the preferential electricity tariff constituted incompatible State aid (Mytilinaios)

360

A PREFERENTIAL ELECTRICITY TARIFF SELECTIVE, CONFERS AND ADVANTAGE AND DISTORTS COMPETITION* Introduction On 11 December 2019, in case C‑332/18 P, Mytilinaios Anonymos Etairia — Omilos Epicheiriseon v European Commission, the Court of Justice probably wrote the last chapter in a long-running (...)

Phedon Nicolaides The EU Commission allows under EU State aid rules an important project of common European interest notified by several member states to cooperate for the development of innovative products (IPCEI)

85

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice provides further guidance on how economic activities linked to non-economic functions must be treated in a State aid context (Aanbestedingskalender)

319

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice provides a preliminary ruling relating to a dispute between several electricity and hydroelectricity producers concerning a tax on the use of inland waters for the production of electricity (UNESA)

118

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court confirms the Commission ruling on the calculation of the amount of compensation resulting from contractual obligations in the motorways sector (Autostrada Wielkopolska)

121

COMPENSATION TO A TOLL ROAD OPERATOR* Introduction When is a company entitled to compensation by the state? The easy answer is “when the state is liable for damage”. However, it may be possible for a company to claim compensation from the state when the state has assumed contractual (...)

Phedon Nicolaides The EU Commission approves a State aid scheme partly because it didn’t contain aid and partly because it was compatible with the internal market (Primary Residence Protection Scheme)

67

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice holds that the EU rules does not impose time limitation rules when national courts deal with claim for damages arising from non-notified aid (Fallimento Traghetti del Mediterraneo)

133

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice holds that a tax exemption may not constitute State aid if it is justified by reasons linked to the nature or general scheme of the tax system (Finanzamt / A-Brauerei)

211

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court annuls a Commission decision holding that public funding to an operator in a closed sector does not affect trade and therefore does not constitute State aid (Scandlines Danmark) (Stena Line)

187

Infrastructure Projects, State Guarantees and Distortion of Competition* State guarantees must be limited in duration and amount and the conditions for their mobilization must be defined in advance. Public funding to an operator in a closed sector does not affect trade and, therefore, does not (...)

Phedon Nicolaides The EU General Court holds that a change in the method of funding public broadcasting does not constitute an alteration of an existing aid measure that would require notification to the Commission (Stichting Woonlinie / Stichting Woonpunt)

291

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice finds that recovery of unlawful State aid is only impossible if the difficulties claimed by the Member State are real and there are no alternative methods of recovery (Scuola Elementare Maria Montessori)

112

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission holds that the intervention of the French state to a phone company does not constitute state aid as it complies with the market economy investor principle (Orange)

108

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice assesses that an increase of 20% in a tax inseparably linked with a State aid measure has to be notified to the Commission (Carrefour Hypermarchés / Ministre des Finances et des Comptes Publics)

106

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice holds that public service obligations must be properly defined via an official act or an administrative decision (Castilla-la-Mancha State aid’s)

95

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court annuls an aid granted to an important project of common European interest (IPCEI) as unconditional and unlimited guarantees are incompatible with the internal market (Øresund road-rail fixed link)

168

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice holds that a selective measure should be determined on the basis of its effects and not on the basis of the legally defined regulatory techniques (Dirk Andres)

68

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission holds that a selective tax reduction does not constitute State aid if it doesn’t provide an economic advantage for the enterprises concerned (Danish water tax exemption)

73

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that an Irish tax exemption aimed at changing consumer behaviour in relation to harmful sweetened drinks is not State aid (Irish tax on sugar sweetened drinks)

62

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission limits broadband network State aid authorizations only to areas where market based instruments are unlikely to be made without aid measures (The Netherlands Broadband Rivierenland Region)

79

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court overturns the Commission’s decision that exclusive use of a port by a shipping company was not State aid, after finding the Commission failed to open a formal investigation and establish that the port owner acted as a private operator (Naviera Armas)

67

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice annuls a judgment of the General Court, finding that previously granted State aid must be disregarded when it applies the private investor principle (FIH)

63

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice finds that Bulgaria’s refusal to grant de minimis aid on exports is valid as it related to the promotion of sales in another Member State (ZPT AD)

95

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission approves the compensation provided by the UK to the incumbent postal operator for the extra costs of the public services provided for the 2018 - 2021 period (Post Office Limited)

230

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court overturns a Commission decision that health insurance providers did not receive State Aid, after finding that the presence of operators seeking to make profit determines the economic nature of an activity (Dôvera Zdravotná Poistovña)

49

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court affirms a Commission decision that France did not act as a private investor, and that Member States claiming private investor status have to prove it on the basis of objective and verifiable evidence (EDF)

69

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court affirms a Commission decision finding that Greek container terminal operators received incompatible State aid which must be recovered (Hellenic Republic / Commission)

94

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that competitive elements in a health care system do not make the system economic in nature (Alleged compensation of public hospitals in Lazio)

74

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission decides that a Danish levy intended to liberalise the horse racing sector is compatible with State aid rules (Denmark - aid scheme for horse racing sector)

99

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice finds that a Member State can only successfully claim under the private investor principle if it can demonstrate that its decision to invest is based on a prior economic assessment of the profitability of the investment (SACE / SACE BT)

51

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that Finnish measures which benefited a pharmacy are not State aid, because they were an exercise of regulatory functions for which a fee does not have to be demanded (Yliopiston Apteekki Oy)

69

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice finds that the Commission is obliged to consider the private investor test in State aid cases, even if it has not been raised by the Member State (Frucona Košice)

50

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court finds that the amount of State aid necessary to induce a company to invest in an assisted region is the cost difference between the assisted region and the best alternative location (BMW)

50

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that a Polish scheme to aid milk producers is incompatible with the internal market because it is a non-severable violation of other EU law principles (Aid scheme for milk producers)

52

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice finds that tax exemptions granted by Spain to the Catholic church can constitute State aid if they relate to economic activities (Congregación de Escuelas Pías Provincia Betania / Ayuntamiento de Getafe)

57

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that Danish support for local sports associations is not State aid and that, if it were, it would be compatible according to the General Block Exemption Regulation (Denmark / Support to local sports associations)

88

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission approves as compatible with the internal market an R&D measure in the air sector notified by France and Germany, after finding it complies with the RDI framework (Repayable advances for the research and development programme of the Airbus X6 helicopter)

67

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice finds that the transfer of public assets between state owned companies for the purpose of extinguishing a debt may constitute State aid (Fondul Proprietatea / Complexul Energetic Oltenia)

71

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court partly annuls a Commission decision for misapplying the market economy operator test by failing to establish a causal link between the obligations assumed by an infrastructure operator and the costs it bears (Germanwings)

47

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that German financial instruments supporting the renovation of a congress centre are State aid compatible with the internal market (Revitalisation of the Hamburg Congress Centre)

69

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court affirms a Commission decision that compensation for public services and a capital increase granted by Sardinia to a maritime company is aid incompatible with the internal market (Regione autonoma della Sardegna)

152

* Article published on StateAidHub (click here). The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need (...)

Phedon Nicolaides The EU Commission approves concession agreements in the Greek air sector, finding that they do not constitute State aid (Concession Agreements for the upgrade, maintenance, management and operation of regional airports)

44

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court upholds a Commission decision that a French ferry company received incompatible aid which must be recovered, and clarifies the definition of a service of general economic interest (SNCM)

78

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission approves State aid granted to Italy’s third largest bank in order to rectify a serious disturbance in the Italian economy (Liquidity support to MPS bank)

61

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice rejects an appeal concerning a Spanish aid measure in favour of a public broadcaster, finding that the amount of aid granted did not depend solely on the amount of tax paid by the appellants (DTS)

56

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court upholds a Commission decision finding that a Danish aid scheme in favour of the print media sector is compatible with the internal market (Søndagsavisen)

78

* Article published on StateAidHub (click here), republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships (...)

Phedon Nicolaides The EU Commission finds that a State guarantee on a bond to be issued by a Greek bank to improve its liquidity is aid compatible with the internal market (Attica Bank)

70

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that a Croatian scheme to save banks in financial distress is compatible with State aid rules and the Directive on bank recovery and resolution (Resolution scheme for small credit institutions with total assets below EUR 1.5 billion)

70

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that a Lithuanian measure intended to transfer state-owned buildings to science and technology parks does not constitute State aid (Science and Technology Parks)

57

State Aid for R&D: How Intermediaries Pass on Aid to Third Parties* Operators of research infrastructure do not benefit from State aid, if they fully pass on the aid to the users of the infrastructure. The amount of aid must be quantified. Introduction The beneficiaries of State aid to (...)

Phedon Nicolaides The EU Commission finds that a direct grant of regional investment aid given to a German textile company was made in accordance with the Regional Block Exemption Regulation (Getzner Textil Weberei GmbH)

49

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court finds that the asset transfer between two companies constituted a State aid and is compatible with the internal market on certain condition (FIH)

180

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice finds that an aid scheme which omits express reference to the General Block Exemption Regulation cannot be considered to fulfil the conditions for exemption from notification set out in the Regulation (Dilly’s Wellnesshotel)

54

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court affirms a Commission’s decision that aid granted to German climbing centers is compatible with the internal market, finding that the Commission’s economic analysis was sufficient (Magic Mountain Kletterhallen)

70

Compatible State Aid May Have Negative Effects on some Market Operators* The existence of market failure is not necessary for aid to be declared compatible under Article 107(3). Market failure does not mean that the market is completely unable to supply a good or service. State aid aiming to (...)

Phedon Nicolaides The EU General Court holds that the benefits of a state guarantee can only be assumed in the case of borrowing, and that in other types of transaction the Commission must prove their existence (IFP Énergies nouvelles)

63

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court upholds the Commission’s decision finding that aid measures targeting consumers with particular needs not adequately provided by the market do not unduly distort competition (Hamr / Sport)

68

Sport Facilities, the Balancing Test and Distortion of Competition* Aid measures that target persons with particular needs and who are not adequately provided by the market are not likely to be found to distort competition contrary to the common interest, even if there is some substitutability (...)

Phedon Nicolaides The EU General Court upholds the Commission’s finding that German measures to support green electricity are incompatible with State aid rules (Germany / Commission)

81

Support for Green Electricity: State Resources and “PreussenElektra”* Arrangements established by law whereby undertakings are compensated for any extra payments they make to producers of green electricity are likely to bring those payments under the control of the state. Those payments will (...)

Phedon Nicolaides The EU General Court confirms that State aid is an objective concept, and that in assessing aid measures the Commission is not bound by tax exemptions authorised by the Council (Ireland / Commission)

56

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court overturns a Commission decision finding Slovakian aid incompatible, holding that the Commission must consider the private investor test even where it has not been raised by the member state (Frucona Košice)

35

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice upholds the General Court’s finding that Greek compensation payments made to farmers are incompatible State aid which must be recovered (Greece / Commission)

58

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that an exemption from an electricity fee granted by Lithuania is compatible with the Regional Aid Guidelines (Regional aid scheme for the promotion of the development of strategic ICT projects)

667

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that publicly funded advisory and information activities in the dairy sector can constitute State aid (Verband der deutschen Milchwirtschaft)

43

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission reminds national Courts that neither the importance of a service nor a decision of a tribunal is sufficient to remove a public measure from the scope of application of State aid rules (CSTP / Buonotourist / Micula Brothers)

165

Compensation for Public Service Obligations and Compensation for Damage* Compensation for public service obligations is compatible with the internal market when, at minimum, a PSO is well defined in an entrustment constituting an official act of a public authority, the revenues and costs of (...)

Phedon Nicolaides The EU Commission finds that Italian aid granted to companies suffering damage from natural disasters is incompatible, but that recovery is impossible (Measures linked to natural disasters)

49

a) Natural Disasters and b) Absolute Impossibility to Recover Incompatible State Aid* Aid to remedy the damage caused by natural disasters can be granted only if the damage is the direct consequence of the disaster and the amount of aid must be limited to the actual damage suffered by each (...)

Phedon Nicolaides The EU General Court explains that a public authority can act as a private investor in paying to bring forward future revenue (Netherlands, Gemeente Leidschendam-Voorburg, Bouwfonds Ontwikkeling and Schouten & De Jong Projectontwikkeling)

96

The Market Economy Investor Principle Applies also to Avoidance of Losses* A public authority can act as a private investor in paying to avoid costly contractual clauses. A public authority can act as a private investor in paying to bring forward future revenue. Introduction When a market (...)

Phedon Nicolaides The EU General Court states that, despite having a margin of discretion, a prudent private investor always carries out an assessment of the potential profitability of the investment before it commits any money (SACE and Sace BT)

169

Application of the MEIP to Transactions between Parent and Subsidiary Companies* The Market Economy Investor Principle also applies to transactions between related companies. A private investor enjoys a margin of discretion in deciding in favour or against an investment. However, despite that (...)

Phedon Nicolaides The EU General Court reminds Member States that individual awards of de minimis aid must remain below the relevant threshold as well as the sum of all individual awards in any three-year period (Italy)

181

The Use and Abuse of De Minimis Aid & State Resources* Individual awards of de minimis aid must remain below the relevant threshold as well as the sum of all individual awards in any three-year period. Introduction This article reviews a case that, among other things, deal with the use (...)

Phedon Nicolaides The EU Court of Justice explains that measures that impose additional charges for the purpose of maintaining equality between operators do not necessarily qualify as State aid (Kernkraftwerke Lippe-Ems / Hauptzollamt Osnabrück)

145

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission reminds that aid measures which are funded by beneficiaries themselves are unlikely to constitute State aid (Flemish Centre for Agricultural and Fisheries Marketing)

150

Commission in decision SA.39652* Aid measures which are funded by beneficiaries themselves are unlikely to constitute State aid. De minimis aid may be granted on condition that not only individual awards of aid remain below the various thresholds defined in different de minimis regulations (...)

Phedon Nicolaides The EU General Court explains that a restructuring aid can finance any part of a restructuring plan and that compensatory measures initiated before the granting of restructuring aid can be taken into account as long as they are linked to the restructuring itself (Niki Luftfahrt)

101

Restructuring Aid* Restructuring aid can finance any part of a restructuring plan. Compensatory measures initiated before the granting of restructuring aid can be taken into account as long as they are linked to the restructuring itself. Restructuring aid On 13 May 2015, the General Court (...)

Phedon Nicolaides The European Commission finds measures offering free services to SMEs not to constitute State aid because they could not be reasonably expected to affect cross-border trade (Wirtschaftsbüro Gaarden)

114

Germany Scores a Hat-trick of Non-Aid Measures!* At the end of April, the European Commission announced that seven measures were found not to constitute State aid because they could not be reasonably expected to affect cross-border trade. The finding of no affectation of trade is rare. That (...)

Phedon Nicolaides The EU Commission finds a measure allowing a rental agreement to accommodate medical practitioners at a preferential rate not to constitute State aid for being to limited and lacking of affectation of interstate trade (Medical centre in Durmersheim)

122

Germany Scores a Hat-trick of Non-Aid Measures!* At the end of April, the European Commission announced that seven measures were found not to constitute State aid because they could not be reasonably expected to affect cross-border trade. The finding of no affectation of trade is rare. That (...)

Phedon Nicolaides The European Commission finds measures not to constitute State aid in the medical sector because, being of interest only for local patients, they did not effected trade between member States (Landgrafen - Klinik)

129

Germany Scores a Hat-trick of Non-Aid Measures!* At the end of April, the European Commission announced that seven measures were found not to constitute State aid because they could not be reasonably expected to affect cross-border trade. The finding of no affectation of trade is rare. That (...)

Phedon Nicolaides The EU Commission finds a measure aimed at helping public hospitals not to constitute State aid because it did not affect the trade between member States (Hradec Králové Region)

173

* Article published on State Aid Hub (click here), republished in e-Competitions with the courtesy of the author(s). The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds a measure helping an outdoor training centre not to constitute State aid for lack of affectation of interstate trade, based on the local origin of users (Glenmore Lodge)

152

SA.37963: Glenmore Lodge, UK* At the end of April, the European Commission announced that seven measures were found not to constitute State aid because they could not be reasonably expected to affect cross-border trade. The finding of no affectation of trade is rare. That seven measures were (...)

Phedon Nicolaides The EU Commission finds a measure not to constitute State aid because the services provided occurs at a local level and is thus unlikely to attract customers from other Member States to any meaningful degree (Community Amateur Sports Clubs)

168

SA.38208: Member-owned golf clubs, UK* At the end of April, the European Commission announced that seven measures were found not to constitute State aid because they could not be reasonably expected to affect cross-border trade. The finding of no affectation of trade is rare. That seven (...)

Phedon Nicolaides The EU Commission holds that an incompatible aid can be recovered from an undertaking that continues some of the activities of an insolvent undertaking that received the aid (Termoelectrica / Electrocentrale Deva)

126

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court explains that the fact that undertakings are obliged by law to comply with certain tests does not justify the subsidisation of their costs with public funds (Belgium)

130

* Article published on State Aid Hub (click here), republished in e-Competitions with the courtesy of the author(s). The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice and General Court explain how to determine whether state guarantees constitute State aid and how much aid is involved (Banco Privado Português)

318

State Guarantees* The amount of State aid in a guarantee that makes possible the granting of a loan to a well-collateralised firm in difficulty is not the difference in premium but the difference in interest rates. Beneficiaries of guarantees not notified to the Commission do not have any (...)

Phedon Nicolaides The EU General Court holds that compensation for structural disadvantages encumbering undertakings is still State aid except if it satisfies the Altmark criteria (France)

194

* Article published on State Aid Hub (click here), republished in e-Competitions with the courtesy of the author(s). The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court holds that when the Commission orders recovery of aid that is intended to be passed on to final consumers, it must first calculate the amount, if any, that has been retained by the direct recipients of the aid (Aer Lingus / Ryanair)

132

A New but Dubious Concept of Advantage * When the Commission orders recovery of aid that is intended to be passed on to final consumers, it must first calculate the amount, if any, that has been retained by the direct recipients of the aid. If the calculation is too complex, the Commission can (...)

Phedon Nicolaides The EU General Court surprisingly agrees to a reduction of the recoverable amount of an aid according to the amount allegedly passed on to consumers (Aer Lingus / Ryanair)

96

Should State Aid that Is Passed on to Consumers Not be Recovered?* Should the amount of recoverable aid be similarly reduced by the amount that is allegedly passed on to consumers? I will argue the case against it. Introduction On 5 February 2015, the General Court, in cases T-473/12, Aer (...)

Phedon Nicolaides The EU General Court explains that in the field of State aid it is not necessary to define precisely the relevant market in order to determine the existence of an advantage (Club Hotel Loutraki)

138

ii) Monopolies and the market economy investor principle* Several casinos in Greece appealed against Commission decision SA.33988 which found that an exclusive licence granted to OPAP, the Greek betting undertaking, to operate 35,000 video lottery terminals [exclusive rights 1] and the (...)

Phedon Nicolaides The EU Commission explains that public funding does not have to satisfy the very strict Altmark criteria in order to be authorised if it complies with the relevant regulation or guidelines (Stretto airport)

167

* Article published on State Aid Hub (click here), republished in e-Competitions with the courtesy of the author(s). The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission holds that services provided by a public authority in the exercise of its public duties are not economic in nature, even if market operators offer similar services (TenderNed)

193

Electronic procurement in the Netherlands* Services provided by a public authority in the exercise of its public duties are not economic in nature, even if market operators offer similar services. The decision analyse in depth the presence or not of economic activity and also respond to (...)

Phedon Nicolaides The EU Commission explains that a private investor may consider a possible damage of its reputation from laying off workers but the damage has to be quantified (SNCM)

69

SNCM* In 8 July 2008, the Commission took the view that certain measures in favour of Société Nationale Maritime Corse-Méditerranée [SNCM] did not constitute State aid and certain other aid measures were compatible with the internal market. The 2008 decision was partially annulled in September (...)

Phedon Nicolaides The EU General Court holds that a tax measure that applies to certain transactions is not selective if it does not preclude any company or type of asset (Netherlands Maritime Technology Association)

111

Tax Measures with Specific Objectives Can still Be General* A tax measure that applies to certain transactions is not selective if it does not preclude any company or type of asset. Conditions for the application of a tax measure may be justified by the logic of the tax system. The Commission (...)

Phedon Nicolaides The EU General Court reminds Member States that when they claim that an exemption follows from the logic of the tax system they have to make sure that they treat equally and consistently all similar cases (Ryanair)

140

* Article published on State Aid Hub (click here), republished in e-Competitions with the courtesy of the author(s). The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The European Commission reminds that it does not only examines the compatibility of the aid itself but also the compatibility of the levy or tax with internal market rules (Renewable energy)

102

Green Electricity and Reduction of Energy Taxes for Energy-Intensive Users* Support of electricity production from renewable energy sources is normally compatible with the internal market. Reduction of taxes on electricity used by energy-intensive industries is allowed only for certain sectors (...)

Phedon Nicolaides The EU General Court holds that tax measures are selective when they constitute an exception or deviation from the normal tax system is limited only to certain undertakings (Banco Santander)

170

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission holds that infrastructure projects which are economic in nature are subject to State aid scrutiny regardless of their importance (Øresund Fixed Link)

160

An Important Project of Common European Interest* Infrastructure projects which are economic in nature are subject to State aid scrutiny regardless of their importance. However, public funding of transport networks which are open to all users does not constitute State aid. Introduction State (...)

Phedon Nicolaides The European Commission holds that the granting of exclusive rights may confer an advantage but does not in itself result in transfer of state resources (Jadrolinija Imuna Pharm)

211

Exclusive Rights* The granting of exclusive rights may confer an advantage but does not in itself result in transfer of state resources. Private undertakings that hold exclusive rights are not utilising state resources by the mere fact that they operate under rights conferred by the state. (...)

Phedon Nicolaides The EU Commission explains that a system which is predominantly based on solidarity does not become economic in nature when operators have a small degree of discretion to compete on quality and to make profit from efficient provision of services (Spoločná zdravotná poisťovňa)

249

* Article published on State Aid Hub (click here), republished in e-Competitions with the courtesy of the author(s). The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission reminds Member States of mistakes they can avoid when they compensate operators on whom they impose public service obligations (Dublin Bus and Irish Bus)

152

* Article published on State Aid Hub (click here), republished in e-Competitions with the courtesy of the author(s). The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that tax amortisation of financial goodwill arising from the acquisition of foreign companies constitutes State aid that is incompatible with the internal market (Spain)

65

Corporate taxation* Last October, the Commission adopted decision 2015/314 which was published in the Official Journal on 27 February 2015. In this decision, the Commission finds that tax amortisation of financial goodwill arising from the acquisition of foreign companies constitutes State aid (...)

Phedon Nicolaides The Court of Justice and the General Court of the EU hold that a measure adopted via faulty procedures can be a State aid and that the mere quality of competitor is not sufficient to be considered as individually concerned (Commerz Nederland ; Dansk Automat)

92

i) State Aid Can Be Attributed to the State even when Granted via Faulty Procedures ii) Who Can Challenge a Commission Decision Authorising State Aid?* Main points For a measure to constitute State aid, it must, among other things, be attributed to a decision of the state. When a State aid (...)

Phedon Nicolaides The European Commission publishes a textbook decision that gives ample guidance on how to establish whether a public authority acts as a market operator or private investor (NEUWOGES / Bavaria Immobilien)

108

Land Development* The sale of land and buildings owned by a public authority conforms with the market economy operator principle when i) it is profitable, ii) there is no alternative transaction that is economically more attractive, and iii) the sale is as profitable as similar transactions (...)

Phedon Nicolaides The EU General Court and the European Commission focus on relative prices instead of absolute prices in assessing if price regulation of casinos entry tickets can be a State aid (Greece / Commission)

71

Advantage from High Entry Prices: Can It Be That Both the Commission and the General Court Have Misunderstood Simple Economics?* Main points Price regulation can constitute State aid if the state forgoes potential revenue. However, for price regulation to constitute State aid it must (...)

Phedon Nicolaides The EU General Court and the European Commission explain how to determine the existence of selectivity when similar but not identical measures are adopted by similar authorities in the same Member State (Hansestadt Lübeck)

86

The Jurisdictional Side of Selectivity* Main points A measure determined independently by similar public entities is not selective even if it varies across those entities. A measure is selective when the entity that has adopted it, applies it differently to undertakings which are within its (...)

Phedon Nicolaides The EU Commission applies for the first time the General Block Exemption Regulation to sport infrastructures and holds that their public funding may constitute State aid (Kristall Bäder)

320

The First Application of the New GBER to Sport Infrastructure* Public funding of local sport infrastructure may constitute State aid. The granting of a concession contract for the construction and/or operation of the infrastructure may not exclude State aid for the concessionaire. Measures (...)

Phedon Nicolaides The EU Commission finds that some aid measures granted in support of a French airport are compatible, while others are not and must be recovered (Nîmes-Uzès-Le Vigan)

74

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court upholds the Commission’s decision to approve a restructuring aid given to a financial institution conditional on divestment of public shareholdings (Westfälisch-Lippischer Sparkassen-und Giroverband / Commission)

68

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court upholds the decision of the Commission stating that compensatory payments can be State aid even if partially funded by private funds and specifies that recovery may exclude payments that satisfy the conditions of the relevant de minimis regulation (Greece)

179

Compensatory Payments Can be State Aid* Main points Article 107(1) also applies to payments that offset the damage caused by natural disasters. It is irrelevant that the compensation is partial or that competitors did not suffer similar damage. A measure can be State aid even if it is (...)

Phedon Nicolaides The EU General Court refuses to find the Altmark criteria fulfilled and reminds that Member States have discretion to define what they consider as an SGEI but only after having identified market gaps (Zweckverband)

250

* Article published on Lexxion State Aid Blog (click here), republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court explains that the profitability that would satisfy a private investor is a rate that covers the cost of capital for that particular investment (Ciudad de la luz)

103

Benchmarks of Profitability for Private Investors* Main points A public authority that injects capital in an undertaking [or provides any other kind of finance] must ensure that the funding can achieve the rate of return that can, in principle, satisfy a private investor. The rate that can (...)

Phedon Nicolaides The EU Commission approves a financial aid for the construction of a multiarena in Copenhagen after finding proof that the measure was both necessary and proportionate to realise the project, as well as sufficiently open to competition (Elitefacilitetsudvalget)

78

Article published on Lexxion State Aid Blog Transparency Is also Needed at the European Commission Level* Main points As more State aid measures in the future will be granted on the basis of the General Block Exemption Regulation, Member States will have to make the aid they grant more (...)

Phedon Nicolaides The European Commission decides that the grant of capital injections to a company facing difficulties in the meaning of the Rescue and Restructuring Guidelines was not covered by regional aid exemptions stipulated by Article 107(3)(a) (Elan)

74

Capital Injection that Turns out to be Incompatible State Aid* Main points Public authorities and the entities they control need to ensure that injection of public money in an undertaking must satisfy the market economy investor principle, otherwise it will be considered to be State aid. (...)

Phedon Nicolaides The EU Court of Justice finds failure to fulfil treaty obligations, since the member state did not recover the aid declared unlawful and incompatible with the internal market in a timely and effective manner (Commission / Spain)

107

Article published on Lexxion State Aid Blog The Cost of not Recovering Incompatible Aid* Main points 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 (...)

Phedon Nicolaides The EU General Court rules on the matter of power purchase agreements entailing effects of foreclosure that limited the scope for eligible customers to switch to the free market (Dunamenti / Tisza)

227

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission issues guidelines on state aid for environmental protection and energy that have a wider scope and require a more rigorous application of the principles of necessity and proportionality of aid

149

Article published on Lexxion State Aid Blog The New Guidelines on State Aid for Environmental Protection and Energy, 2014-2020* Main points The new guidelines are wider in scope: They also cover energy infrastructure, energy capacity and reductions from electricity levies. The new (...)

Phedon Nicolaides The EU Commission deems that the land development scheme for industrial and commercial use in Germany did not encompass any advantage as the purchasers of subsidised assets paid the market price

171

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission holds that public and private investments are a necessary but not sufficient condition for public investments to be free of State aid (Larco General Mining / Metallurgical)

126

* Article published on Lexxion State Aid Blog (click here), republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that Greece’s sale of certain assets of a state owned mining company does not constitute State aid (Larco General Mining & Metallurgical Company)

51

*Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice issues two judgements on the application of the Private Investor Principle and correspondently the Private Creditor Principle (Rousse Industry)

71

Article published on Lexxion State Aid Blog The Importance of a Correct Framing of the Private Creditor and Private Investor Tests* Main points A public authority acting as private creditor must exhaust all legally available means of recovering money owed to it. A private creditor may agree (...)

Phedon Nicolaides The EU Court of Justice renders preliminary ruling on the notion of “linked enterprises” in relation to a dispute on the calculation of the amount of an investment subsidy (HaTeFo)

168

Article published on Lexxion State Aid Blog SMEs Linked through Natural Persons Two or more enterprises may constitute a single undertaking when their owners and/or managers are related in a way that they can act jointly to exercise influence over the decision of those enterprises. (...)

Phedon Nicolaides The EU Court of Justice rules that the national courts dealing with a case of recovery of illegal state aid may not disregard the statement of position made by the Commission in the relevant decision (Mediaset)

295

Article published on Lexxion State Aid Blog The Role of National Courts in Recovery of Incompatible State Aid* Introduction In December I examined the judgment in the case of Lufthansa v Frankfurt-Hahn, which laid down certain obligations for national courts whenever they are petitioned to (...)

Phedon Nicolaides The EU Commission decides that the compensation for the operation of the two additional routes linking Sardinia to the mainland and the recapitalisation measure constituted illegal state aid and orders recovery (Saremar)

165

* Article published on Lexxion State Aid Blog (click here), republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds the compensation of school bus and tram transport in the Land Rhineland-Palatinat to be compatible with the internal market (Landesbetrieb Mobilität Rheinland-Pfalz)

151

* Article published on Lexxion State Aid Blog (click here), republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission publishes decision concerning a parafiscal levy intended to fund supposedly public service obligations assigned to French horse racing companies (France)

207

* Article published on Lexxion State Aid Blog (click here), republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Court of Justice interprets the concept of intervention through state resources and finds that the offset of additional costs arising from the obligation to purchase green electricity constituted state intervention (Vent de Colère)

508

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission considers the aid for the implementation of an urban development project for schools in the region of Attica to be compatible with the internal market based on Article 107(3)(c) TFEU (JESSICA)

63

A JESSICA-Funded Public-Private Partnership* Main points 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. (...)

Phedon Nicolaides The European Commission confirms the use of the funding gap method for determining the necessity and proportionality of State aid for infrastructural projects (Port of Capo d’Orlando)

111

Management of Port Infrastructure through a very long Concession Contract: Is the Funding Gap Method Meaningful?* Main points Competitive selection of the operator of an infrastructural facility normally eliminates State aid. However, modifications to the contract after the operator is (...)

Phedon Nicolaides The EU Commission decides to consider the aid for renewing an ice arena to be compatible with the internal market since it served a policy objective of common interest (Thialf)

135

Article published on Lexxion State Aid Blog Competitive Elements in the Selection of Operators of Sports Infrastructure May not Be Enough to Eliminate State Aid* Main points The existence of an advantage cannot be excluded when the operator of an infrastructural facility is chosen through a (...)

Phedon Nicolaides The EU Court of Justice rules on the matter of non-notified State aid subject to a formal examination procedure initiated by the Commission and the measures to be adopted by the national courts hearing an application for cessation or recovery (Deutsche Lufthansa / Flughafen Frankfurt-Hahn)

175

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 (...)

Phedon Nicolaides The EU Commission finds that Lithuanian aid given to a gas terminal operator entrusted with services of general economic importance is compatible with the internal market (Klaipedos Nafta / LNG Terminal)

104

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU Commission finds that the potential of the archaeological museum to affect intra-EU trade was low and therefore the measure did not constitute state aid (Messara Creta)

122

Article published on Lexxion State Aid Blog 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, (...)

Phedon Nicolaides 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 (Land Burgenland)

266

* Article published on Lexxion State Aid Blog (click here), republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Phedon Nicolaides The EU General Court rejects an appeal against a budgetary grant in favour of the French state-owned television company, without providing any further explanation on the matter of inefficient undertakings assigned with public service obligations (Télévision française 1)

311

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 (...)

Phedon Nicolaides The EU Commission considers that a Dutch notified scheme fulfils the conditions of the environmental aid guidelines and passes the compatibility test under Article 107(3)(c) TFEU (Anti-opt-out scheme)

114

Article published on Lexxion State Aid Blog 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 (...)

Phedon Nicolaides The EU Commission establishes that the compensation for the provision of inter-regional bus transportation services constitutes incompatible state aid as the requirement for ex ante determination of net costs has not been fulfilled (Simet)

133

* Article published on Lexxion State Aid Blog, republished in e-Competitions with the courtesy of the author(s). The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships (...)

Phedon Nicolaides The EU General Court clarifies the nature of services of general economic importance and affirms that it is necessary to identify the presence of market failures justifying the grant of compensation (Colt Télécommunications France)

455

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure* Introduction The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of (...)

Phedon Nicolaides The EU General Court annuls a Commission State aid decision, rejecting the accuracy of the calculations concerning the rate of interest that a hypothetical private investor would have paid in a similar situation (Poste Italiane)

390

New Case Law on Incentive Effect, “Private Borrower”, Advantage, Compensation, SGEI and Market Failure* Introduction The posting reviews three recent rulings of the General Court. They are significant because they introduce substantial nuances in the case law concerning the concepts of (...)

Phedon Nicolaides The EU General Court reinforces the doctrine of inseparability concerning compensation for public service obligations assigned to environmental organisations (Germany / Commission)

255

The Emerging Doctrine of Inseparability and Compensation for Public Service Obligations [T-347/09, Germany v Commission]* Introduction In the landmark judgment in Leipzig Halle, the General Court stated that infrastructure which is inseparable from economic activity is itself economic and its (...)

Phedon Nicolaides The European Commission holds that even when a public authority invests together with private investors on pari passu terms, the expected profitability of the project should still be demonstrated in order to comply with State Aid rules (Project Consorzio Casalasco del Pomodoro)

83

Application of the Market Economy Investor Principle to a Company Processing Agricultural Products* When a public entity injects fresh capital in a company in which it is already a shareholder, the new capital does not constitute State aid when it satisfies three conditions: i) all (...)

Phedon Nicolaides The EU Commission decides that the measure for the development of sustainable tourism had no impact on intra-EU trade and, consequently, did not constitute state aid (NUTS II region Southeast)

111

Article published on Lexxion State Aid Blog 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 (...)

Phedon Nicolaides The EU Court of Justice dismisses the appeal of the Commission in relation to the failure to act as regards a state aid measure allegedly granted to Italian airlines (Ryanair)

131

Exceptional Circumstances, Natural Disasters, Commercial Risk and Rights of Complainants* Rights of Complainants Concerning Unlawful Aid: Case C-615/11 P, European Commission v Ryanair, 16 May 2013 The European Commission appealed against the judgment of the General Court in case T-442/07 (...)

Phedon Nicolaides The European Commission finds that the measures taken in the Czech public libraries case do not constitute state aid in the meaning of Article 107(1) TFEU because libraries are not undertakings

74

Article published on Lexxion State Aid Blog. The Flexible Boundary between Economic and Non-economic Activities (part I)* This is a rather long posting divided into two parts both of which deal with the concept of economic activity. In part I, I analyse two cases outside the field of State (...)

Phedon Nicolaides The EU Commission finds that the state aid granted under the form of a fiscal measure implemented in breach of the standstill provision was compatible with the internal market (Multiplier Giftenaftrek)

72

Article published on Lexxion State Aid Blog Fiscal Leveraging: Donations and State Aid for Culture and Sports* Introduction In this blog I examine primarily a Dutch measure that supports cultural institutions by providing tax incentives to individuals and corporations to make donations to (...)

Phedon Nicolaides The EU Court of Justice rules that seemingly separate interventions may constitute a single measure if they are inseparable by way of timing, purpose and the condition of the beneficiary undertaking (Bouygues)

127

Where is the Money? The Link between Advantage and Transfer of State Resources* On 19 March 2013, the Court of Justice delivered an important judgment in case C-399/10 P, Bouygues v European Commission concerning aid that was granted by France to France Telecom. The case was an appeal to an (...)

Phedon Nicolaides The EU Commission finds that the Italian real estate tax exemption granted to non-commercial entities carrying out social, welfare, health and religious services does no constitute state aid in the meaning of Article 107(1) TFEU

90

Part II: Non-commercial activities and absolute impossibility to recover incompatible aid* Commission Decision 2013/284 on municipal real estate tax exemption granted to real estate used by non-commercial entities for specific purposes implemented by Italy [SA.20829] This decision concerns (...)

Phedon Nicolaides 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)

966

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 (...)

Phedon Nicolaides The EU Commission finds that Germany has demonstrated that the proposed tax reduction for passengers constitutes compatible State aid (German Flights Tax Reduction)

921

Article published on Lexxion State Aid Blog Taxes and Tax Reductions on Air Travel: Selectivity and Compatibility* This posting examines an Irish and a German measure concerning reduction in passenger taxes. As to be expected, an important issue for both measures was whether the reduction was (...)

Phedon Nicolaides The EU Commission decides that the public financing of non-commercially used infrastructure does not constitute an advantage and has no effect on interstate trade (Przemyśl)

103

Article published on Lexxion State Aid Blog. A Case of Public Funding of Infrastructure that Does not Constitute State Aid: But Many Questions Remain* Introduction After the landmark judgment in Leipzig-Halle, public authorities are justifiably careful to ensure that the infrastructure they (...)

Phedon Nicolaides The EU Commission finds that the arrangements for the extension of the exclusive right to operate 13 games of chance in Greece don’t appear to confer an economic advantage (OPAP)

119

Article published on Lexxion State Aid Blog The Curious Case of Applying the Market Economy Investor Principle to a Monopoly* On 3 October 2012, the European Commission concluded, in case SA.33988, that OPAP, the Greek operator of games of chance received no state aid because the Market (...)

Phedon Nicolaides The EU Commission finds that the lower rate of the air travel tax for flights to a destination located no more than 300 km from Dublin airport constitutes illegal state aid (Irish air travel tax rates)

82

Article published on Lexxion State Aid Blog Taxes and Tax Reductions on Air Travel: Selectivity and Compatibility* This posting examines an Irish and a German measure concerning reduction in passenger taxes. As to be expected, an important issue for both measures was whether the reduction was (...)

Phedon Nicolaides The EU Commission states that the reluctance of a forest company to conclude long-term contracts with other saw mills falls outside the scope of the Article 107 TFEU (Bavarian State Forest Enterprise)

92

Objectively Justified Pricing: The Market Economy Operator Principle* Introduction: Objective justification of price differentiation In a landmark judgment 25 years ago [February 1988], the Court of Justice established that business behaviour that appears to deviate from normal market (...)

Phedon Nicolaides The EU Commission finds that the State aid granted under the form of a fiscal measure implemented in breach of the standstill provision was compatible with the internal market (Hungarian Sport Donations)

118

Article published on Lexxion State Aid Blog Fiscal Leveraging: Donations and State Aid for Culture and Sports* Introduction In this blog I examine primarily a Dutch measure that supports cultural institutions by providing tax incentives to individuals and corporations to make donations to (...)

Phedon Nicolaides The EU Commission finds that the Italian authorities failed to prove the exceptional nature of the delayed provision of aid for shipbuilding and declares the aid to be incompatible with the internal market (Cantiere Navale De Poli)

71

Article published on Lexxion State Aid Blog Exceptional Circumstances, Natural Disasters, Commercial Risk and Rights of Complainants* Exceptional circumstances: Commission Decision 2013/197 on aid to Cantiere Navale De Poli (IT) The measure in question concerned State aid that Italy intended (...)

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