Eszter Hargita, Filip Puzder, Péter Staviczky

European State Aid Law Quarterly, Volume 22 (2023), Issue 3, Page 242 - 266

The Inflation Reduction Act (IRA) was introduced in the US in August 2022, aiming to promote investments into clean energy production. The IRA provides huge amount of aid, which can have a draining effect of green investments vital for the green transition of the European economy. In response, the Commission adopted Temporary Crisis and Transition Framework (TCTF) in March 2023. As well as explaining the historical context and content of these subsidy-rules, this article makes an attempt to compare the subsidies available under the IRA and the TCTF, considering the maximum aid amount available under the regional aid guidelines. Keywords: Inflation Reduction Act; IRA; subsidy competition; incentive effect; operating aid; battery manufacturing; tax credit

Jorge Risueño

European State Aid Law Quarterly, Volume 22 (2023), Issue 3, Page 337 - 342

This case note concerns Região Autónoma da Madeira’s (RAM) action for annulment of the Commission decision relating the aid scheme SA.21259 (2018/C) implemented by Portugal in favour of the free trade zone of Madeira.1 The General Court’s judgment presents a unique opportunity to analyse some key State aid concepts, including procedural aspects, such as the admissibility of infra-State bodies; concepts relating to the notion of State aid, such as the selectivity criterion; and concepts relating to the phase of recovery of unlawful aid, including the principles of legitimate expectations, legal certainty and proportionality and the limitation period. This note also addresses the Court’s assessment of whether aid is new or existing.

Marianne Clayton, Maria Segura

European State Aid Law Quarterly, Volume 22 (2023), Issue 3, Page 348 - 349

Ignacio Herrera Anchustegui

European State Aid Law Quarterly, Volume 19 (2020), Issue 2, Page 225 - 231

On 11 March 2020, the EFTA Surveillance Authority (ESA) declared Norway’s measure to support the development of the world’s first medium-sized floating offshore wind turbine, Hywind Tampen, compatible with the European Economic Area (EEA) Agreement. The measure consists of an investment grant of NOK 2,3 billion (equivalent to ca. €205 million) for the construction of this offshore wind farm, covering about 43% of the total costs of the project. The project seeks to reduce Norway’s carbon footprint and help it transition towards a more sustainable energy supply.

Phedon Nicolaides

European State Aid Law Quarterly, Volume 17 (2018), Issue 4, Page 534 - 545

Kristina Schattat, Natalia Budzynska

European State Aid Law Quarterly, Volume 17 (2018), Issue 3, Page 399 - 411

The compatibility assessment of a State aid measure is about balancing its negative effects on trade and competition in the common market with its positive effects in terms of a contribution to the achievement of well-defined objectives of common interest. One key element for the Commission’s so-called ‘balancing test’ of operating aid under the 2014 Aviation Guidelines is an ex-ante business plan ensuring that the company managing the airport will be able to cover all operational costs as of 2024 at the latest. Another key element for the assessment is the analysis of the catchment area of concerned airports. This article discusses the role of financial and economic analysis and evidence in this balancing test. The Commission Decisions published so far on this type of aid have not included many technical details about the economic and financial analysis of the Commission’s assessment. Neither has the Commission published specific guidance for the Member States on these elements. This article aims to shed light on these aspects by not only reviewing the decisional practice of the Commission but by sharing the practical experience of the authors with helping Member States to receive the Commission’s approval for granting operating aid to regional airports. Keywords: Balancing Test; Compatibility Assessment; Economic and Financial Analysis; Operating Aid; Airport; Infrastructure; Aviation Guidelines 2014; Notification; Business Plan; Operating Funding Gap; Cost of Capital; Catchment Area.

Michele Giannino, Federich Romby

European State Aid Law Quarterly, Volume 16 (2017), Issue 4, Page 567 - 581

By the 2014 Aviation Guidelines the European Commission introduced a brand-new regime for airport operating aid whereby this type of public aid can be lawfully granted if it satisfies certain compatibility conditions. The article reviews the decisional practice developed by the Commission on the application of the competition conditions for airport operating aid, highlighting the circumstances under which such aid may be found to be incompatible. Arguably, the so-called ‘duplication argument’ plays a key role in the Commission assessment of the compatibility of airport operating aid. Indeed, the only two negative decisions so far made by the Commission were based on the consideration that the aid led to the duplication of unviable airport facilities. In contrast, the Commission cleared aid awarded to airports that met demand for air transport services that was not satisfied by the nearby airports. Keywords: Operating Aid; Airport; 2014 Guidelines; Commission Decision.