State Aid

Governments can distort competition by granting aid to companies. An aid measure can come in different forms. Not only in the form of subsidies, provision of loans or guarantees on "soft" terms, but also in the form of relief of charges, such as exemptions, exemption/reduction of fees and in the form of non-market transactions. In all these cases, there may be state aid, which must be notified to the European Commission for approval.

After notification, the Commission assesses whether aid is indeed granted and, if so, whether it is compatible with the common market. As long as the Commission has not decided on a notification, proposed aid may not be implemented. If it is, the project may have to be halted or the aid, plus interest, may have to be recovered from the beneficiary.

Our specialists have extensive experience in assisting both governments and companies in various state aid files. The files in which we are involved range from the assessment of state aid risks in land transactions with public authorities, to the state aid-proof design of complex financing agreements in the context of public-private partnerships. One high-profile case in which our lawyers have been involved concerns the investigation by the European Commission into possible prohibited state aid to Dutch soccer clubs.