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)

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 on this point, especially with respect to the sale of public land or a building. Such a sale may constitute State aid “where it is not made at market value” or it is not sold at a price that is “acceptable to a private investor [or private vendor], operating in normal competitive conditions”. [1] This immediately raises the question: What would be an acceptable price to a private vendor? The answer is that it is the price that maximizes the potential revenue which is generated by the sale, or simply the highest possible price. But what is the

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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), 19 December 2012, e-Competitions Bulletin December 2012, Art. N° 58910

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