State Aid that distorts competition in the Common Market is prohibited under the European Community Treaty.

This prohibition covers not just the one-off rescue and restructuring of firms in difficulty but also aid to sectors that in many countries have traditionally been recipients of aid such as agriculture, broadcast media and transport.

Consequently it is a persistent challenge for all Member States to show that state resources are either not being used to distort competitive forces or that they should nevertheless qualify for an exemption.

Find out more about State Aid related notifications and disputes (pdf).

For further information on our Economic Consulting and Competition Economic services please contact Robin Cohen, Corporate Finance Partner.