EU/EEA State Aid Rules

• The course provides an overview of EU/EEA State aid rules and their application to state interventions that constitute aid under Articles 107(1) TFEU and 61(1) EEA.
• Government support gives a company an advantage over competitors.
• The EU Treaty and the EEA Agreement generally prohibit State aid unless justified for economic development.
• The European Commission and EFTA Surveillance Authority(ESA) ensure EU/EEA states comply with State aid rules.
• The EU/EEA State aid rules are an essential component of EU/EEA competition law.
• State aid control has gained importance since the 1980s.
• The financial crisis (2008/2009), the COVID-19 crisis, and the war in Ukraine have highlighted the importance of ensuring Member States support companies without undermining the internal market.
• At the close of 2021, EU Member States granted around €940 billion to companies for COVID-19, about 3.39% of the annual EU27 GDP.
• State aid law is about granting aid that aligns with the internal market by correcting failures and/or targeting sustainable growth without affecting trading conditions.
• Examples of "good aid" include aid for energy and environmental protection, regional development, combating unemployment, promoting innovation, research and development.
• State aid is subject to approval by the Commission (EU Member States) or ESA (Norway, Iceland, and Liechtenstein).
• Aid granted in breach of State aid rules must be repaid by the beneficiary.
• This course analyses State aid law, including:
• Definition and objectives of State aid control.
• The "private investor test" and issues of cross-subsidization.
• Primary and secondary EU and EEA law and relevant case-law.
• State aid control at the national level in EEA Member States.
• Interplay between State aid and Public Procurement law.
• Compatibility assessment and Services of General Economic Interest(SGEIs).
• Procedures before the Commission and the EFTA Surveillance Authority(ESA).
• Scope of judicial review.
• Measures for recovery of incompatible aid.

Learning Outcomes

• Students will gain knowledge of material and procedural rules, theories, principles, and notions in State aid.
• Students will understand the rules governing the competences and obligations of national authorities and courts in the field.
• Students will be able to discuss academic topics such as State aid and taxation, Temporary Frameworks, or the European Green Deal.
• Students will understand the modernization of State aid rules in response to climate change, the COVID-19 outbreak, and the war in Ukraine.
• Students can update their knowledge using various resources.
• Students will know the reasoning behind the State aid law regime and its significance.
• Students will acquire the ability to identify relevant rules, apply them correctly, and justify their choices and conclusions.
• They will be able to identify weaknesses in regulations and discuss potential solutions.
• They will provide in-depth analysis by referring to regulations, case-law, and legal literature.
• Students can complete assignments, present results, and communicate relevant issues using State aid law terminology and theories.
• They can discuss the role of State aid rules in the context of EU policies and ambitions.

Course Information

• The course is worth 10 ECTS credits.
• It is a master's level course offered in the spring semester.
• The course combines with JUS291-2-A or JUS2302 to generate no new credits.
• Knowledge of relevant EU/EEA law is expected.
• The course involves discussion-based lectures and master classes, with student access to self-study modules and in-depth requirements.
• Participation in master classes, including a student presentation, is obligatory.
• Assessment is via a 4-hour digital school exam with two theoretical questions and a case analysis.
• The grading scale runs A-E for passed or F for failed.
• One dictionary is permitted, with bilingual dictionaries considered as one item.
• The Academic Affairs Committee and the Faculty of Law are responsible for the course content.
• The exam will take place on June 4th 2025 and be 4 hours in length.