State Aid for CCS Plants: The Views from the European Commission

2011 ◽  
Author(s):  
Michele Giannino
Author(s):  
margherita lazzara

This paper aims to define certain rules that may accompany insolvent enterprises and over-indebted households in post-pandemic recovery. At this time, the crucial need to provide entrepreneurs, creditors, debtors, and consumers with certainties cannot be delayed. In the wake of the COVID-19 pandemic, various countries are adopting measures to change the application of their insolvency laws. The Virus was circulating in Italy before spreading to all other European countries, therefore the Italian government had to adopt urgent measures, which drastically impacted insolvency and collective procedures, inter alia. The paper focuses on the legislative provisions adopted by the Italian government as compared to the recent communication of the European Commission of 19 March 2020 ("The new temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak") and to the Directive (U.E.) 2019/1023 on restructuring and insolvency. In light of the foregoing, two solutions will be formulated that may be immediately adopted in support of the debt of enterprises and households to ensure the successful recovery of solvency.


2016 ◽  
Vol 9 (14) ◽  
pp. 299-315
Author(s):  
Tihamér Tóth

The European Commission decided in 2008 that Hungary provided State aid through a set of Power Purchase Agreements1. Electrabel SA (hereinafter, Electrabel) and Dunamenti Erőmű Zrt. (hereinafter, Dunamenti Erőmű) brought an action for annulment against this decision that was dismissed by the General Court in 2014. One year later, the Court of Justice confirmed the first instance ruling, even though Advocate General Wathelet was of the opinion that the contested judgment should be set aside. According to the Advocate General (hereinafter, AG), the case raised three difficult issues: (i) is the relevant date for the assessment of the existence of the aid the date on which the measure was implemented (well before Hungary’s EU accession) or the date of the accession; (ii) should the date of accession be the relevant date, do facts prior to that date have to be included in the assessment of the existence of State aid, and (iii) which company should repay the aid granted.


2014 ◽  
Vol 11 (2) ◽  
pp. 116-136 ◽  
Author(s):  
Moritz von Unger

Germany’s Renewable Energy Law (eeg) has come under pressure. The European Commission announced in December 2013 that it would perform an investigation for violation of state aid rules. The eeg subsidizes the production of renewable energy and requires electricity consumers to pay an “eeg surcharge”. The Commission is concerned that energy-intensive industries are largely exempt from paying the eeg surcharge and considers the privileges as illegal state aid. Germany disagrees arguing that they are a necessary means to balance the interest of the environment and those of industry burdened with high energy costs. Compromise is feasible, however, and negotiations are ongoing. Arguably more threatening is the legal prospect from Ålands Vindkraft, a case in which the Court will judge whether the restriction of feed-in-tariffs to domestic sources violates Article 34 tfeu. If the Court follows the opinion of General Advocate Bot, Germany may have to open the eeg subsidy scheme to renewable sources outside the country, surely leading German voters to question the legitimacy of the eeg altogether.


Author(s):  
Kreuschitz Viktor ◽  
Nehl Hanns Peter

This chapter addresses access to justice in the context of centralized enforcement of EU State aid law and judicial review before the Union courts. The subject matter of litigation is State aid measures adopted in particular by the European Commission as the main supervisory body in this field pursuant to Article 108 TFEU. The term ‘access to justice’ is meant to comprise both the various conditions of standing for bringing direct actions against such measures before the General Court (GC), which essentially comprise actions for annulment (Article 263 TFEU), actions for failure to act (Article 265 TFEU), and actions for damages (Article 268 in combination with Article 340(2) TFEU). The chapter also looks at the nature and the types of acts that are possibly subject to judicial review before the GC.


Author(s):  
Stephen Wilks

This chapter examines the European Union’s competition policy and how its effectiveness has steadily increased in terms of controlling restrictive practices, abuse of dominant position, mergers, state aid, and the liberalization of utilities. It considers how the central dominance of the Directorate-General for Competition (DG COMP) in the European Commission has been perpetuated and how competition policy has become a supranational policy competence which can be regarded as an ‘economic constitution’ for Europe. The chapter also discusses the decentralization of antitrust enforcement to the national agencies and courts through the ‘Modernization Regulation’ of 2003, as well as a ‘turn to economics’ in which economic analysis has been substituted for legal tests to move towards an ‘effects-based’ (effect on competition) interpretation of the law.


Subject EU state aid. Significance The European Commission has approved more than EUR2.1tn (USD2.4tn) in state aid since March. This significant relaxation of state aid rules -- aimed at preventing businesses from collapsing and protecting them from foreign takeover -- could last for another year or two. At the same time, the Commission is preparing to bolster its scrutiny of aid by non-EU states which gives their firms a competitive advantage over EU ones. Impacts After aviation, those sectors most in need of state aid are other transport sectors, hospitality and tourism. Richer EU countries’ ability to provide much more state aid to its firms will fuel a disjoined economic recovery across the euro-area. The EU’s crackdown on foreign subsidies will likely make it more difficult to reach a trade and investment partnership with China.


2021 ◽  
Vol 30 (2) ◽  
pp. 305
Author(s):  
Dóra Lovas

<p>The aim of the article is to present the ruling of the Court of Justice of the European Union (CJEU) in the case of the Hinkley Point C nuclear power plant. This investment can also be related to the Paks II nuclear power plant investment, therefore the two investments are compared too. Both projects were examined by the European Commission, which take an important part when the national aid was awarded to Hinkley Point C and Paks II projects, and the decision of the CJEU also had influence on it. The author considers the European Commission’s aid conception positive, because the less developed countries are not forced to use only the renewables, but the environmental and security aspects of nuclear energy are also allowed (e.g. Hinkley Point C and Paks II nuclear power plants). The subsidy was allowed in both cases, but the reasons are different. In these cases, the limits of the EU energy politics can be seen, i.e. the right to select the package and the priority of the energy security and sustainable development. To mention an example for the difference, in Great Britain the energy sector was divided among the participants on the market but in Hungary the nuclear energy remained under state control. In the first option the state wanted to prove that it grants offset for the help to the general market services and in the second option the market investor principle was highlighted in order to show no other market participant act in other way. These points were not accepted, the state aid was provided both cases with permissible reasons because the projects condescend the goals of environmental policy and energy security. The decisions show that as a result of the efforts to protect the environment the dependency on energy increased and it cannot be solved only be encouraging the usage of the renewables. The permissive attitude of the European Commission can be found here and it is influenced by the increased state regulative roles. According to the author, it also appears in the environmentally friendly decisions which refers to the Paris Agreement’s fulfilment and the involvement of environmental requirements into politics. Moreover, the European Union tries to maintain its leader role in economics, which can be reached by the decrease of energy dependency and the exclusive usage of renewable energies is not the appropriate solution. The CJEU judgement is relevant in several respects. The article focuses primarily on the issue of environmental protection, state aid and the relation between the Euratom Treaty and the Treaty on the Functioning of the European Union.</p>


2018 ◽  
Vol 11 (18) ◽  
pp. 209-225
Author(s):  
Marek Rzotkiewicz

The legal basis the European Commission (EC) choses for its actions when it finds a Member State’s action (or inaction) to be in breach of its obligations stemming from its EU membership vary in different fields of law. This is particularly visible in State aid on one side, and general infringement proceedings on the other. But the line between the general character of a possible infringement and that of State aid law is sometimes blurred and difficult to establish. This article analyses if the EC does not abuse its powers when it chooses Article 108(2) TFEU, instead of Article 258 TFEU. A positive answer to that question is difficult to find and controversial. However, given the benefits the EC gains by taking action under Article 108(2) TFEU, it is visible that the EC’s choice can be biased because of those benefits.


2014 ◽  
Vol 9 (1) ◽  
pp. 17-29
Author(s):  
Roman Kisiel ◽  
Małgorzata Kamińska ◽  
Wiesława Lizińska

Evaluation of changes in the value and structure of public aid in Poland and EU during the years 2007-2012 was the objective of the paper. The data from reports by the Office of Competition and Consumer Protection as well as data from the State Aid Scoreboard published by the European Commission based on the information provided by the Member States concerning that aid was used. In Poland, evident increasing trends of the horizontal aid value can be observed. In 2012, as compared to 2007, it increased by 0.5 billion euro to the level of 1.64 billion euro. Its share in the total value of support oscillates within 55-60% range. In the European Union that share is generally at the level of 70-74%. In Poland, the sectoral aid is limited gradually although its magnitude still differs from the Union standards. In 2012, the share of that aid was relatively small at ca. 14% while in the EU it was 12.9%. The regional aid is at the similar level both in Poland and in the EU oscillating around 20%. However, in 2012, the share of regional aid in Poland increased to the level of 26% and it was higher by 8 pp than the share of that aid in the EU. Significant differences are characteristic for the share of the aid in the GDP. During the period covered by the study the largest differences occurred in 2010 when the share of support in Poland was 1.7% of the GDP and in the EU 0.6% of the GDP. In 2012, a half of the public aid in Poland was allocated to large enterprises. 


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