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Keyword: start of works

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The 'Incentive Effect' and 'Start of Works' – Court of Justice Creates Confusion journal article

Ulrich Soltész

European State Aid Law Quarterly, Volume 23 (2024), Issue 1, Page 35 - 39

The "incentive effect" is a rather technical issue under the State aid rules which is of huge practical importance. In a nutshell, this principle states that aid cannot be granted if the recipient had already started with the project before the application for aid was submitted. As this can lead to the complete refusal of funding, and because the recent case law - in particular the Eesti Pagar judgment (C-349/17) - is extremely harsh in defining the “start of works”, the “incentive effect” requirement has the potential to cause sleepless nights for aid recipients. Unfortunately, the most recent judgment in Est Wind Power (C-11/22) has not helped matters, but instead added to the confusion. Keywords: Incentive Effect; Aid Application; Start of Works; Early Project Start; Investment Aid

Case C-11/22 Est Wind Power OÜ v Elering AS · Annotation by Militsa Kostova journal article

Annotation of the Court of Justice of the European Union (First Chamber) of 12 October 2023 in Case C-11/22 Est Wind Power OÜ v AS Elering

Militsa Kostova

European State Aid Law Quarterly, Volume 23 (2024), Issue 2, Page 200 - 205

The ‘start of works’ criterion as an obstacle to the fulfilment of the formal incentive effect and use of the GBER, has received little attention in academic writing. At the same time, it has created a lot of headaches on the ground - for both practitioners and national authorities. The bar for works to start is traditionally considered rather low, particularly after Eesti Pagar. Surprisingly, a new judgment about something else entirely may cautiously blow the winds in a new direction, including for the formal incentive effect criterion.

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