
Paradoxically, State aid is, in principle, prohibited by European competition law unless it contributes to clearly defined objectives of common interest, such as environmental protection or security of supply. State aid must therefore be notified to the Commission in order to be assessed for exemption from the State aid prohibition. The need to balance different objectives in the State aid assessment leaves Member States with great uncertainty about how to design their State aid measures to get Commission's clearance. In her recent discussion paper, TILEC member Natalia Fiedziuk tries to clarify the approach of the European Commission to State funding of energy infrastructure, and in particular what significance it attaches to different objectives of the European energy policy in the final decision making. One of the conclusions of the paper is that the leniency of the European Commission vis-à-vis State funding of energy infrastructure will depend on the extent the infrastructural project delivers priority objectives of common interest set in the European energy policy.