State Aid

State aid can play a role in virtually any transaction between a government institution and a company. Think of subsidies, loans, guarantees, land transactions or investments, for example. If a transaction is not in line with market conditions, there is a risk that the state aid received is contrary to European law. The consequences could be significant: unlawful state aid must be repaid, even though the investments have often already been made. Timely and strategic legal guidance is therefore essential.

“Our lawyers specialising in state aid advise organisations on how to structure their financial arrangements so that they comply with European state aid rules and stand up to legal scrutiny.”

Eric Janssen

Of counsel

State aid lawyers

Nysingh advises municipalities, provincial authorities, water boards, autonomous administrative bodies, companies and trade associations on state aid matters. Our state aid lawyers combine expertise in European state aid law with practical experience of working with the European Commission and national governments.

 

We not only advise on what is and is not permitted under state aid rules, but we also actively contribute ideas on how to structure transactions. In doing so, we help to mitigate risks and find solutions that align with your policy objectives whilst remaining within the legal framework.

Our expertise in state aid

We provide advice on, among other things:

  • Subsidy awards and schemes
  • Loans, guarantees and venture capital
  • Participating interests in companies
  • Support in sports, such as support for swimming pools and sports facilities
  • Services of General Economic Interest (SGEI)
  • Notifications of aid measures to the European Commission
  • Application of the General Block Exemption Regulation (GBER)
  • State aid for infrastructure and area development (ports, airports
  • Sports infrastructure, land and property transactions)
  • Energy transition and environmental support
  • Complaints regarding unlawful state aid
  • Studies by the European Commission
  • Recovery of state aid

Notification of a state aid measure to the European Commission

The basic principle of European state aid law is that aid measures must be notified to the European Commission in advance. In certain cases, a group exemption, such as the GBER, may be applied, meaning that prior approval is not required.

 

Our lawyers always first examine whether an aid measure can be structured in such a way that it falls under a group exemption. If this is not possible due to policy objectives or the nature of the measure, we will guide you through the entire notification process. We advise on the structure of the aid, draft the notification and liaise with the European Commission and, where necessary, the relevant ministries.

Practical experience with state aid

Nysingh’s state aid lawyers regularly collaborate with our specialists in land acquisition, expropriation and compensation. For example, we advise governments on complex procurement and development projects involving state aid, including:

  • Land sale and payment above market value due to strategic interest
  • Debt write-off (e.g. by owners’ associations)
  • Fees in development agreements
  • Compensation for operating deficits or excess project costs
  • Support measures relating to energy costs and the energy transition
  • Voluntary business closure in farming
  • Subsidies to housing associations and energy cooperatives
  • Assignment of staff through partnerships

Services of General Economic Interest (SGEI)

Where a company provides a Service of General Economic Interest (SGEI) and receives compensation for doing so, that compensation may, under certain conditions, fall outside the scope of state aid. However, the wording of the SGEI, the definition of its remit and the structure of the compensation scheme require great care.

 

Our lawyers advise on the drafting of SGEI decrees and ensure that compensation schemes comply with European requirements.

Complaints, investigations and recovery of state aid

We also assist governments and companies when the European Commission launches an investigation into alleged unlawful state aid, for example following a complaint. In addition, we have extensive experience in civil proceedings relating to the recovery of state aid.

Please contact our state aid lawyers

Are you dealing with a subsidy, investment or transaction where state aid may be a factor? Or would you like to be sure that an aid measure is legally sound? Our state aid lawyers are happy to work with you and offer practical and strategic advice.

Our specialists

Eric Janssen

Of counsel

Miro Verschoor

Attorney at law

Mirthe Visser

Attorney at law

Vanessa Jasarevic

Attorney at law