Agenda – Oxera

Spotlight on tax and state aid: the General Court’s Apple judgment

August 2020

In July 2020, the EU General Court annulled the European Commission’s decision that Ireland had granted illegal state aid of at least €13bn to Apple through two tax rulings. The General Court’s judgment in the Apple case was one of the most keenly awaited judgments in the area of state aid. What are the key economic issues raised by the General Court in this case? More generally, how can multinational companies and national tax authorities mitigate state aid risks?

Flying through the storm: aligning merger control and state support

July 2020

Many firms are facing financial difficulty as a result of COVID-19, and are receiving state support. However, we have not (yet) seen the predicted increase in merger activity. Is it preferable to provide state aid to companies in order to allow them to continue operating, or should we allow these ‘failing or flailing’ firms to be acquired by others? Which is the right tool to use, and could there be more alignment between them?

Practical guidance on the new state aid rules on public recapitalisations

May 2020

Under specific conditions, member states can provide aid in the form of subordinated debt, hybrid capital and equity in line with state aid rules to companies facing difficulties due to the COVID-19 pandemic.

A practical guide to the state aid rules to tackle the impact of COVID-19

April 2020

At the time of writing this note, the health crisis caused by the COVID-19 pandemic has severely affected a number of EU Member States.

State aid spotlight on tax: the General Court’s judgments on Fiat and Starbucks

October 2019

In 2015, the European Commission ordered Starbucks and Fiat to each pay €20m–€30m in the Netherlands and Luxembourg, respectively, as their tax arrangements were found to constitute illegal state aid. On 24 September 2019, the General Court upheld the Commission’s Fiat decision, but annulled the Starbucks decision. What were the key economic issues in these cases, and what are the implications of the judgments?

‘Brexit means Brexit’, but will state aid rules in the UK be lost in transition?

September 2019

State aid control became a focal point of the Brexit referendum debate in the UK in 2016. In a joint article with Dr Leigh Hancher, Professor of European Law at the University of Tilburg and Special Counsel at Baker Botts (Belgium) LLP, we discuss the government’s proposals for state aid rules in the UK if there is no deal, as well as a number of associated practical challenges

Lifting the weight of state aid from project finance

June 2019

In the EU, support provided by the state to finance projects operating in competitive markets typically needs to comply with state aid rules. However, there may be challenges in structuring project financing from the state in a way that is compliant with these rules. What are the fundamental elements to consider when assessing whether the funding confers an economic advantage on the recipient? What alternative financing structures could be considered?

The impact of state aid on competition: an economic framework for the European Commission

January 2018

In December 2017 the European Commission published Oxera’s ex post assessment of the impact of state aid on competition, a study that could have significant implications for future state aid control. We first developed an economic framework that the Commission can use in state aid assessments to evaluate the competitive effects of the aid. We then applied the framework in four case studies, providing insights into the main drivers of the impact of aid on competition

De-stressing distressed investments: portfolio returns in restructuring aid cases

November 2017

In the EU, state intervention to assist firms in financial difficulty is often justified by demonstrating that the aid is compatible based on the European Commission’s Rescue and Restructuring Aid Guidelines. However, these Guidelines impose restrictions on firms’ activities, which can tie the hands of the beneficiary, limiting the options to ensure a return to financial viability. But can state intervention be justified on commercial grounds by focusing on the state’s overall portfolio of assets?

To be fair: what does economic justice look like?

January 2017

What is meant by economic (or distributive) justice has far-reaching implications for economic policies and their outcomes. However, in policymaking the interpretation is often implicit, with limited awareness and discussion of alternative concepts or their merits and drawbacks. What are these key concepts of economic justice, and what is their role in competition policy, regulation and regional state aid?

Bail-in or bailout? State aid to banks under the Single Resolution Mechanism

October 2016

Various European banks and other credit institutions are facing a challenging economic and commercial environment. This has brought the issue of state aid back to the fore. If these institutions do require state support, it is critical that this complies with both the European Bank Recovery and Resolution Directive (BRRD) and EU state aid rules. What exactly are these rules, and how can banks and their respective authorities demonstrate that support is compliant?

The case of Apple, and the state aid spotlight on multinationals’ tax affairs

September 2016

On 30 August 2016, the European Commission handed down its largest-ever adverse state aid decision against the tax rulings of a single multinational, requiring Apple to repay €13bn of aid plus interest. The decision follows state aid investigations of the corporate tax affairs of a number of other well-known companies, and will have far-reaching implications for multinationals that currently have, or plan to have, operations in the EU