The EU Commission highlights the distinction between indirect and secondary effects of a State aid in a case regarding regional airports (Sardinia Airports)

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 relationships with a party or related third party. Article will need e-Competitions Board approval before publication.

Indirect v Secondary Effects of State Aid The prohibition of State aid in Article 107(1) of the Treaty applies both to the direct and indirect beneficiaries of aid. The direct and indirect beneficiaries are those who are intentionally targeted by the aid. Secondary effects are benefits which are inherent in an aid measure and which are not targeted at specific undertakings. Introduction Public funding for the construction of a public road which is open to everyone to use is not considered to be State aid. Yet, it is quite obvious that the undertakings which happen to be close to that road benefit more than others. Shouldn’t that funding be regarded as State aid? The answer of the Court of Justice is “no” because the effect is “secondary” and the benefit that some undertakings obtain is

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Phedon Nicolaides, The EU Commission highlights the distinction between indirect and secondary effects of a State aid in a case regarding regional airports (Sardinia Airports), 18 October 2017, e-Competitions Bulletin October 2017, Art. N° 85308

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