Infrastructure and State aid in light of the IPCEI Communication

Abstract

This article discusses infrastructure and State aid in light of the Communication on the compatibility of State aid for the execution of important projects of common European interest (the IPCEI Communication), which has been adopted by the European Commission (Commission), with a view to have a standard approach to State aid cases involving large infrastructure projects. (Official Journal C 188 of 20.6.2014, p. 4; see also EC Press Release of 13 June 2014, available at: http://europa.eu/rapid/press-release_IP-14-673_en.htm.) While the provisions set out in the Communication do indeed bring about guidance, so far only two decisions have been adopted in light of the Communication and they do not seem to be consistent- neither with each other, nor with the preceding decision-making practise of the Commission on infrastructure. Furthermore, given that the IPCEI Communication addresses the compatibility of State aid, it will only be applicable in cases where infrastructure projects involve an economic activity in the first place. This is, however, a contentious issue which has not only been the subject of several court cases, but also has been addressed in the Commission’s recent Communication on the Notion of Aid. It is all the more important given that the Commission President Juncker’s European Fund for Strategic Investments allocates a good share of the funding to infrastructure projects which may, however, risk being caught up in lengthy State aid approval procedures, and suffer delays as a result.