What is banned by the EU rules on state aid?

European Union law generally prohibits State aid to undertakings (Treaty on the Functioning of the European Union (TFEU), Article 107(1)). Public aid granted to an undertaking may give the company in question a selective financial advantage, which may distort competition and the functioning of the internal market.

Does the EU allow state aid?

The EU and its Member States also use state aid as a policy tool. Exemptions to the EU state aid rules allow for certain beneficial interventions.

Do EU state aid rules still apply in the UK?

The EU State aid rules will no longer apply to most aid provided by government departments and other public authorities in England, Scotland and Wales, unless this relates to Northern Ireland companies and is within the scope of Article 10 of the Northern Ireland Protocol.

What is risk finance state aid?

The Risk Finance Guidelines aim at facilitating access to finance by European small and medium-sized enterprises (“SMEs”) and companies with a medium capitalization (the so-called “mid-caps”). The Commission has conducted an evaluation of the current Risk Finance Guidelines as part of the State aid Fitness Check.

How does state aid work?

State aid is financial assistance that a state offers to eligible residents to help reduce their educational costs. Every state has its own funds and process for distributing aid, which often consists of grants and scholarships.

What has replaced State aid in the UK?

The Subsidy Control Bill will replace EU-wide state aid rules, which require member states to seek approval for government assistance to firms.

What replaced State aid?

In one of the most important pieces of post-Brexit legislation to date, the subsidy control bill will replace EU state aid rules that require its members to seek approval for government support for businesses.

What has replaced state aid in UK?

What is state aid Brexit?

State aid is any advantage granted by public authorities through state resources on a selective basis to any organisations that could potentially distort competition and trade in the European Union (EU).

Where does state aid money come from?

What is the EU doing about state aid?

Therefore the Treaty generally prohibits State aid unless it is justified by reasons of general economic development. To ensure that this prohibition is respected and exemptions are applied equally across the European Union, the European Commission is in charge of ensuring that State aid complies with EU rules.

How to ensure compliance with state aid rules?

Compliance with State aid rules needs to be ensured for all levels involved in the implementation of the financial instrument. Concerning the presence of State aid, the Commission Notice on the notion of State aid (NOA)3provides detailed guidance, which is relevant also for financial instruments.

Can the Commission declare specific categories of state aid compatible?

With these regulations, the Commission can declare specific categories of State aid compatible with the Treaty if they fulfil certain conditions, thus exempting them from the requirement of prior notification and Commission approval. Practical guide to the GBER. DG COMP has published questions and answers to Articles 36 to 58 in March 2016.

What is state aid and why is it important?

State aid is an essential instrument for creating and maintaining a level playing field for all companies. It is therefore necessary that Member States ensure compliance with State aid rules when Member States give aid through financial instruments (co-)financed by the European Structural and Investment Funds.

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