Financing Services of General Economic Interest: The European Commission’s Economic Tests

  • James Kavanagh
Part of the Legal Issues of Services of General Interest book series (LEGAL)


The object of the revised SGEI package is to specify the conditions under which State aid for such services can be found to be compatible with Article 106(2) TFEU. Within the package, the revised SGEI Framework establishes a more prescriptive methodology for determining the compensation to the undertaking entrusted with offering the SGEI, as well as enhanced efficiency incentives. This chapter surveys the revised financial and economic tests for determining appropriate SGEI compensation, commenting on the theoretical basis and practical implementation of these tests.


Equity Capital Equity Risk Premium Efficiency Incentive Equity Beta General Economic Interest 
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Copyright information

© T.M.C. Asser Press, the Hague, the Netherland, and the authors 2013

Authors and Affiliations

  1. 1.Oxera Consulting LtdOxfordUK

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