Legal Practice

Effects of the State Aid Soft Law on Beneficiaries: Annotation on an order of the General Court

Published:
2020-02-19
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Staviczky, P. (2020). Effects of the State Aid Soft Law on Beneficiaries: Annotation on an order of the General Court. Pro Futuro, 7(1), 118-127. https://doi.org/10.26521/Profuturo/2017/1/4751
Abstract

The European Commission issues guidelines and other soft law instruments to define the compatibility conditions of State aid to be granted by Member States with the internal market. Although the soft law is only binding on the Commission it has not negligible indirect effect on the Member States state aid policy and thereby on other policies. So far it was not clear how much beneficiaries could find remedy at European Courts against the soft law issued by the Commission. The present article gives a description on the adoption of the new energy and environmental aid guidelines with the focus on the conditions related to aid to operating aid to energy generation from renewable energy sources in the context of the State Aid modernization initiative. A comparison to the previous rules was also made. Thereafter the article summarizes an order of the General Court issued in a procedure where an applicant has initiated action for annulment of the guidelines. The article also tries to draw some conclusions about the possibilities and limits of beneficiaries and Member States to question the legality of State aid soft law instruments at European Courts.