The White Elephant in the Room... Annotation on European Commission Decision of 3 August 201 6: State aid SA.41342 (201 6/N) - Germany. Financing of Berlin Brandenburg Airport

Abstract

This annotation focuses on the latest (out of three) European Commission decisions on the financing of the new Berlin airport by its public shareholders. The decision is important because it deals with a case having a great impact on the Single Market. Moreover, it constitutes the first example of application of the private investor test in airport financing cases after the publication of the Commission Notice on the notion of State aid - the jewel in the crown of the State Aid Modernisation initiative. The commentary points to the link between politics, law and economics in high-profile State aid cases, questioning the effectiveness of EU State aid control.

Keywords: Market Economy Investor Principle, Airport Infrastructure, Airport Operator, Traffic Forecast, Severability, Predictability

JEL Classification: K23, K29, K39, R40, R42