Beyond administrative guidance: legal effects of state aid guidelines and the need for judicial review

Abstract

Under EU law, state aid is in principle prohibited to ensure fair competition within the internal market. The European Commission reviews proposed state aid schemes submitted by Member States and issues administrative guidelines to lead the process. This paper focuses on the legal effects of state aid guidelines, particularly in relation to the energy transition and the Temporary Crisis and Transition Framework adopted during the 2022 energy crisis. The Courts have reasoned that state aid guidelines are only binding on the Commission, as Member States are not obligated to adopt any state aid schemes. However, this article argues that state aid guidelines are often closely linked to policy objectives of the European Union and should not be considered in isolation. The connections between administrative guidelines and other regulations raises important questions about the Commission's role in ensuring fair competition through state aid control.