Aid is necessary and proportional; incentive effect

Consequently, it has not been proven by the Danish authorities that the proposed aid is proportionate.

Moreover, the Commission had also doubts regarding the necessity and proportionality of the aid.

In assessing whether the aid is proportionate to the nature and magnitude of the market failure, the Commission must ensure that the aid is limited to the necessary minimum.

The Commission questioned the proportionality of the aid in respect of the repayment terms of the repayable advance.

Regarding the proportionality of the aid, Spain argued that the principle of net cost coverage would be assured.

For this reason, the net benefit that non-public service activities derive from the public service activity will be taken into account in assessing the proportionality of the aid.

For this reason, the net benefit that non-public service activities derive from the public service activity will be taken into account in assessing the proportionality of the aid [19].

Regarding the proportionality of the aid, the maximum aid intensities established by the Cinema communication may be applied by analogy.

On the other hand, the Commission must check whether the current provisions of the public service contract with NorthLink 2 contain sufficient safeguards to ensure the proportionality of the aid.

In this respect, the Commission wishes to ensure that no additional aid is provided that would alter the proportionality of the aid measure as a whole which are the subject of the present Decision.

The United Kingdom also provided additional information on the doubts expressed by the Commission in the opening of procedure as regards the proportionality of the aid.

The Commission also put questions to the Netherlands regarding the proportionality of the aid, with reference to point 159 in the environmental aid guidelines.