State aid is a crucial element of European Union (EU) law that regulates the use of public resources to support businesses without distorting competition in the internal market. It encompasses any financial assistance or benefit granted by national authorities to businesses that could potentially give them an unfair advantage over competitors.
Regulation and Permissibility
The European Commission strictly oversees State aid to prevent negative impacts on the market. However, certain types of aid are permissible under EU law if they serve broader policy objectives, such as:
- Promoting regional development
- Supporting research and innovation
- Addressing environmental concerns
Examples of potentially authorized aid include public funding for renewable energy projects or rescue aid for companies in financial distress, provided they meet the Commission’s criteria.
Scope and Consequences
State aid regulations apply to various sectors, including energy, transport, and telecommunications. These rules are subject to continuous evolution through case law. Non-compliance can result in businesses being required to repay received aid, often with interest.
CMS Guide Overview
This CMS guide explores the legal procedures, market economy principles, and sector-specific aid provisions crucial for both businesses and public authorities. It offers valuable insights into State aid intricacies, covering topics from complex taxation issues to the UK’s post-Brexit subsidy framework.
Key Topics Covered
The Expert Guide for State Aid, authored by CMS experts across jurisdictions, provides in-depth legal research and insights on the following topics:
- What is State aid?
- State aid procedure
- State aid and the market economy operator principle
- Rescue and restructuring aid for undertakings in difficulty
- State aid and de minimis aid
- The funding of public service missions under State aid
- State aid and taxation
- State aid in the energy sector
- State aid for research, development and innovation
- State aid for Important Projects of Common European Interest
- State aid for undertakings impacted by the invasion of Ukraine by Russia
- UK subsidy system
