Selectivity is an evergreen topic of the State aid jurisprudence and related legal literature. The European Courts have dealt with this issue in great detail regularly. Following the landmark judgments of the recent years the method to establish whether a measure is selective or not has been crystallized. This three step method has been however challenged by two recent judgments of the General Court both on Spanish tax measures. Since the judgments create some ambiguity it is worth to explore their arguments and highlight the weak points as Member States have to follow the jurisprudence if they intend to build a State aid compliant tax system.
Keywords: Notion of Aid, Selectivity, de facto Selectivity, Action for Annulment, Undertakings in similar Factual and Legal Situation