Introduction It is an established principle in the case law that the Commission may not authorise State aid that infringes other provisions of EU law, both primary and secondary. Now consider the following case. A Member State notifies to the Commission regional investment aid to support the construction of a mega factory. The factory will produce its own energy and for that purpose a small coal-fired electricity plant will be installed. This is because the factory will be located close to a coal mine that is licensed to operate for another 10 years. Without the extra demand from the factory, the mine would become commercially unviable. Should the Commission prohibit the aid? After the landmark judgment of September 2020 in case C-594/18 P, Austria v European Commission, advocates
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The EU General Court clarifies the nature of the link that must exist between State aid and other provisions of EU law in order for an aid measure to be found incompatible with the internal market (MVM Paks II Nuclear Power Plant Development)
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