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Extension of the State Aid Acquis under the Energy Community of South-East Europe in Case ECS-10/18

Davor Vuletić


Keywords: Bosnia and Herzegovina, Energy Community, electricity, extension, guarantee

The State aid acquis has been spreading out of the EU through the enlargement process under the European Agreements and Stabilisation and Association Agreements. Moreover, the State aid acquis became a part of other international agreements such as the Treaty Establishing Energy Community in South East Europe (TEEC). Some legal theorists describe EU law as a ‘self-contained system’ whose application outside its original legal and institutional environment could be problematic. Moreover, if the principle of ‘monism’ is not applied, the process of ‘gradual approximation’ depends on the interpretation of the acquis role in the national legal system. Under these circumstances, agreements such as the TEEC serve as agents for practical implementation of the EU acquis within broader international law. This article addresses named challenges through the assessment of Case ECS-10/18 involving a guarantee for the construction of a power plant in Bosnia and Herzegovina. The article argues that the application of the EU State aid acquis in this case is missing sound legal and economic analysis. Ultimately, the full State aid control cannot be achieved, because the European Commission control and the Court of Justice of the European Union oversight are not available. Instead, general principles of international law apply, including countermeasures not immanent to the EU State aid acquis.
Keywords: Bosnia and Herzegovina; Energy Community; electricity; extension; guarantee

Mr. Sci. Davor Vuletić is freelance consultant on State aid law and a PhD candidate at the Zagreb University. He was engaged as external State aid consultant for the beneficiary company in the case that will be presented. This article is based on the thesis reviewed by Prof Phedon Nicolaides, written as a requirement for obtaining the Professional Certificate on State Aid. For correspondence: <>


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