When Does a Public Measure Become an Aid Scheme?

In this piece for State Aid Hub, author Phedon Nicolaides discusses the EU rules governing the notification of state aid, focusing on the distinction between “new aid” and “existing aid” under Regulation 2015/1589. He explains that while Member States must notify new aid measures to the European Commission before implementation, authorised aid schemes can generate multiple individual awards without requiring separate approval, provided they meet predefined criteria.

The analysis centers on a ruling by the Court of Justice of the European Union in case C-58/25, which examined a Flemish decree allowing municipalities to support certain property transactions through financial assistance and preferential access conditions. The Court was asked to determine whether the decree itself constituted a notifiable aid scheme or whether only subsequent municipal measures would qualify as state aid. This distinction hinged on whether the decree enabled aid to be granted without further implementing measures.

The Court concluded that the decree did not constitute an aid scheme because municipalities retained significant discretion over whether and how to implement it, including setting key conditions and determining the level of financial support. As a result, additional implementing measures were required before any aid could be granted, meaning the decree itself did not need to be notified under Article 108(3) TFEU. Consequently, the Court found it unnecessary to address questions regarding legitimate expectations…