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Tutorial 10- state aid
Lecture
state aid: rules Article 107 TFEU, procedure Article 108
conditions for state aid 107(1)
if all conditions are met, aid is incompatible with EU internal market,
UNLESS you can argue for exemption
there has to be an aid
no definition- broad interpretation
the form of the aid does not matter!
but 2 elements:
1. there has to be an advantage
financial or non-financial (Eventech)
form does not matter (direct subsidies, tax exemptions,
etc.)
taxation still included by Treaty !
Commission vs Ireland and Apple
2. has to be artificial
market investor principle
beneficiaries could not obtain the benefit in normal market
conditions
granted by a member state or member state resources
member state AND member state resources
1. granted by ms
Tutorial 10- state aid 1
, directly: also regional or local bodies or public undertakings
(Intermills)
indirectly: not a state organ, but an undertaking (private or
public) granting the aid to another
crucial: state must control the undertaking granting the aid,
and state has to be involved in the decision (Stardust
marine)
2. through member state resources
is there an impact on MS budget?
by favoring certain undertakings or the production of certain goods
aid has to be granted to an undertaking- public or private
(Höfner- definition)
it has to be done in a selective manner
out of all the undertakings that couldve benefited, only certain
ones did
there is nothing that justifies distinction between undertakings-
they are in a comparable position
must (threaten to) distort competition
undertaking receiving the aid is in a more advantageous position
economic analysis
regulation on de minimis aid
less than 300 000 euro over 3 years
Article 3(2)- thresholds- no notification
affects trade between member states
broad understanding—> if it might strengthen the financial position
of an undertaking than it affects trade
relatively small aid can also impact trade between member states
exemption
Tutorial 10- state aid 2
Tutorial 10- state aid
Lecture
state aid: rules Article 107 TFEU, procedure Article 108
conditions for state aid 107(1)
if all conditions are met, aid is incompatible with EU internal market,
UNLESS you can argue for exemption
there has to be an aid
no definition- broad interpretation
the form of the aid does not matter!
but 2 elements:
1. there has to be an advantage
financial or non-financial (Eventech)
form does not matter (direct subsidies, tax exemptions,
etc.)
taxation still included by Treaty !
Commission vs Ireland and Apple
2. has to be artificial
market investor principle
beneficiaries could not obtain the benefit in normal market
conditions
granted by a member state or member state resources
member state AND member state resources
1. granted by ms
Tutorial 10- state aid 1
, directly: also regional or local bodies or public undertakings
(Intermills)
indirectly: not a state organ, but an undertaking (private or
public) granting the aid to another
crucial: state must control the undertaking granting the aid,
and state has to be involved in the decision (Stardust
marine)
2. through member state resources
is there an impact on MS budget?
by favoring certain undertakings or the production of certain goods
aid has to be granted to an undertaking- public or private
(Höfner- definition)
it has to be done in a selective manner
out of all the undertakings that couldve benefited, only certain
ones did
there is nothing that justifies distinction between undertakings-
they are in a comparable position
must (threaten to) distort competition
undertaking receiving the aid is in a more advantageous position
economic analysis
regulation on de minimis aid
less than 300 000 euro over 3 years
Article 3(2)- thresholds- no notification
affects trade between member states
broad understanding—> if it might strengthen the financial position
of an undertaking than it affects trade
relatively small aid can also impact trade between member states
exemption
Tutorial 10- state aid 2
