State Aid Law

5 important questions on State Aid Law

In which way do EU state aid rules determine purchase or acquisition agreements of state - owned entities? (real estate)

  1. Prior notification of all new aid measures to Commission
  2. Non notified measures are unlawful (and void)
  3. Illegal may be enforced by national courts
  4. >80% of State aid measures exempted by General Block Exemption Regulation or de-minimis Reg.

What does altmarkt-Trans criteria say?

Compensation payment does not constitute an unfair market advantage and therefor does not fall under art 107 TFEU, without need to examine justification under art 106 TFEU

Four Altmarkt-Trans criteria:

  • Recipient undertaking must have public service obligations which are clearly defined

  • Calculated compensation must be transparant

  • Compensation shall not exceed what is necessary to cover all or part of the costs (incl reasonable profit)

  • If undertaking not chosen to public procurement procedure, compensation determined on basis of an analysis of costs
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What is the Block Exemption?

  1. De minimis if aid does not exceed 200,000 / 3 years
  2. or 500,00 / 3 years

In which way could this violate EU state aid rules?

Economic advantage = State aid audit of tax benefit
Three-step test:

  1. Determination of tax reference system (corporate, insurance or value added)
  2. Determination of whether tax measure suspected of aid constitutes deviation
  3. If discriminatory deviation exists -> fine-tuning of deviation

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