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State aid and EU law
The challenges
European state aid rules apply significant restrictions on the extent to which public funding can be applied whether national funds or European Union Structural Funds are involved. In the increasingly sophisticated world of funding, a failure to properly address EU state aid rules may result in a requirement to repay the monetary value of any assistance provided. It may also result in the collapse of an important project relating to economic development. This can have both financial and political ramifications for the funder and the recipient of such funding.
The European Commission is committed to 'less and better targeted State aid'. As a result of the enlargement of the European Union certain existing methods for addressing State aid within the pre-enlargement Member States will, in future no longer be available or will not be available to the same extent. You need lawyers who are able to advise on innovative mechanisms for structuring projects in what is becoming an increasingly dynamic area of EU law.
How we can help
We take a commercial approach to State aid compliance weighing up the need for compliance with the State aid regime and the commercial and political drivers relevant to publicly funded projects.
We always provide clients with an upfront assessment of a proposed measure of assistance. Wherever possible we look to provide advice on how assistance can be structured to avoid the lengthy process of formal approval by the European Commission.
Where notification is required, you will gain from our extensive experience of negotiating directly with the European Commission and relevant Central Government Departments to achieve approval for novel and innovative publicly funded projects.
We have worked with both public sector funders and private sector recipients of such funding which enables us to consider both perspectives in terms of addressing the potential risks of non-compliance with the State aid regime.
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