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- EU
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State Aid
State aid encompasses a wide range of state support including direct subsidies, tax concessions, state guarantees and investments from public funds in circumstances where a private investor would not have given support. In order to ensure EU-wide competition on a level playing-field, Member States are restricted in the way they can subsidise businesses or sectors.
The European Commission has been undertaking an oingoing reform programme of the state aid rules, under a broad strategy to achieve "less and better state aid". A main theme is that, whereas public subsidies which are likely to make European markets more dynamic in the long term - e.g. aid to research and innovation, SMEs and in the form of risk capital - should be allowed, Member State "bail-outs" of large, established businesses are not.
Normally, state aid must be notified to the European Commission before it is granted. If aid is granted without being notified and cleared:
- the Commission can investigate and can, ultimately, demand repayment/recovery of the aid
- competitors can also seek interim relief or claim damages for any loss suffered in the national courts
We can assist you by advising on whether arrangements could be viewed as state aid
and what risks (or opportunities) there may be.
To learn more about our experience click here .
Contact Michael Dean or Catriona Munro .
