Recent and ongoing developments in the European Union’s state aid rules present complex challenges for governments planning and implementing measures that may entail state aid and, more significantly, for companies conducting business transactions with EU member states or state-controlled entities.
A grant by any EU member state of public subsidies (state aid) to an individual or to a defined group of companies that creates an undue distortion of competition is, in principle, unlawful. A finding of illegal state aid can result in a recovery amount equal to the state aid granted plus interest.
Our lawyers have an extensive track record advising governments, public bodies, and companies throughout the EU state aid control process, as well as representing them in state aid investigations before the European Commission and in subsequent litigation before the EU courts.
We are ready to assist our clients and friends with any issues related to EU state aid. This page is a go-to resource for the latest information and developments on the topic. Please do not hesitate to contact one of our lawyers or register for one of our upcoming events to learn more.
Our lawyers offer in-depth analysis of the complex issues concerning the application of state aid rules to help our clients understand, avoid, and manage the risks inherent in the EU state aid control process. Our state aid work spans a host of matters. Our lawyers routinely:
The European Commission has revised its Temporary Framework for State Aid to support the economy during the coronavirus (COVID-19) pandemic to allow capital injections by EU member states into nonfinancial firms affected by the pandemic.
The European Commission has approved a £50 billion (EUR 57 billion) “umbrella” UK state aid scheme to support small and medium-sized enterprises and large corporates in the United Kingdom affected by the coronavirus (COVID-19) outbreak. The umbrella scheme was approved on April 6, 2020, under the State Aid Temporary Framework, as amended.
UK emergency state aid measures for small and medium-sized enterprises related to the coronavirus (COVID-19) pandemic will include direct grants and guarantees covering 80% of loan facilities.
The European Commission on 19 March adopted a Temporary Framework for State Aid to support the economy in the context of the COVID-19 outbreak, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union, which enables the Commission to approve national support measures to remedy a serious disturbance to the economy of European Union member states.
The European Commission (the Commission) published on 2 April a summary of its findings on a state aid investigation into the United Kingdom’s controlled foreign company (CFC) finance company exemption. The Commission has found that certain aspects of this regime constitute illegal state aid, and under EU law the UK is required to take steps to recover this from recipients. The UK’s tax authority, HM Revenue & Customs (HMRC), has not yet announced what form this action will take, nor whether it may appeal.
Challenges and recent developments regarding NPLs and the role of EU state aid rules.