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Shedding Light into the ‘Black Box’ of State Aid:

The Impact of Hinkley Point C on the Assessment of the Compatibility of State Aid

Phedon Nicolaides

DOI https://doi.org/10.21552/estal/2021/1/3

Keywords: Article 107(3)(c) TFEU, compatibility with internal market, common interest, affectation of trade, distortion of competition, Hinkley Point C


The article argues that the judgment of the Court of Justice in case C-594/18 P Austria v Commission, which appeared to limit the criteria that the Commission uses to determine the compatibility of State aid, may have a positive impact on State aid control if it makes the assessment of the Commission more transparent. There is a need for greater transparency in the ‘weighing’ of the positive and negative effects of State aid and the ‘balancing’ of those effects. The weighing and balancing of the effects of State aid are not easy tasks. But it will be necessary for the Commission to be more explicit about the model it relies on to conclude that aid is compatible or not.
Keywords: Article 107(3)(c) TFEU; compatibility with internal market; common interest; affectation of trade; distortion of competition; Hinkley Point C

Phedon Nicolaides, Professor, University of Maastricht; Visiting Professor, College of Europe, Bruges, and LUISS University, Rome. I am grateful to an anonymous referee for comments and suggestions on a previous version.

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